Competitive Environment And Maintaining Customer Relationships

1321 Words6 Pages
1.0 Introduction In today’s competitive environment, maintaining customer relationships is a key to business success because customers are considered as important strategic resources of a business. However, all business markets contain many subgroups of customers that behave differently, that have different ambitions, and have different purchasing behaviours. Hence each subgroup must be treated differently in order to build strong customer relationships. To compete with rival businesses, it is vital for a business to know enough about their customers and to know the wants and needs of the customers. Britain 's largest employee-owned retailer, the John Lewis Partnership owns Waitrose, a chain of British supermarkets, which comprise the…show more content…
This is twice as the penetration in the US. Due to these new challenges, Waitrose is interested in analysing their customer data to gain an overall understanding about their online customers, to group them into categories and to identify the attributes of the high value online customers for their business. This helps them to be able to better optimize marketing programs, satisfy customers and to increase profits. The main objective of this analysis is to use the data mining techniques to analyse the customer purchasing data and to discover patterns, solutions and to find implicit but potentially useful information to answer business questions of Waitrose. In this analysis, these data mining techniques will be used to define the “High value customer profile” for Waitrose. 1.1 Structure of the Report In this report Chapter One is the introduction of the thesis. It gives a concise introduction to data-mining and some areas where this tool is used or needed. It also covers the problem background of this thesis. Chapter Two includes a literature review on customer profiling, data mining and its major classification techniques. And also a comparative analysis of the models used by the other researches to classify the customers as high value and normal. Chapter Three describes the methodology employed in this thesis and an introduction of the data used in the analysis. Chapter Four gives the results and compares the different
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