Study on Application of Data Mining in Customer Acquisition

Abstract

To identify target customers is one of keys for distributor to gain competitive advantage and reduce marketing costs. The objective of this study is to propose a customer acquisition model based on binary behavioral response and apply this model to customer acquisition. In this model, the training sample set D and its attribute set A are input into data mining algorithm f(D,A) to carry out binary classification calculation, the attributes corresponded to the "yes" response are the set of target customer attribute. According to the set of target customer attribute, a set of association rules are derived from the "yes" response behavior. The new feedback data is scanned with the obtained association rules to generate the target customer list. Employing RAINFOREST-CC as the data mining algorithm, this customer acquisition model has been applied to identify target customer for an automobile 4S store, and the result indicates that this model is effective.