Customer Segmentation Model Based on Retail Consumer Behavior Analysis

Customer segmentation is the basis of the customer relationship management (CRM). For the retail business, customer segmentation through certain methods will help the good implementation of customer relationship management. The customer segmentation based on the purchase behavior may bean effective method of choice. Principal component analysis (PCA) is a method of multivariate statistical analysis. BP neural network is a multilayer feed forward neural network.In this study, we combined the advantages of principal component analysis and BP neural network and presented a customer segmentation model through analyzing the retail consumer behavior. Taking the results of PCA as the input of BP neural network, we used the VIP customer data of a retail business and verified the validity of the model.