Application of SOM Neural Network in Customer Segmentation Model in Coal Enterprises

This paper presents a customer segmentation model in coal enterprises based on SOM neural network. The index system in this model is designed into seven indexes according to the customer lifetime value and behavior character. Then it is divided into six sections to calculate much data in database of information system based on the SOM neural network. After completing the quantification and standardization of customers index values, the third section explores network structure design and the learning parameters configure. The forth section discusses how to gain multiple customer clusters from trained sample data by using MATLAB. The final two sections describe the evaluation of each customer cluster and analysis the results of customer segmentation. At the end, we illustrated whole the model with a case and conclude how to make new marketing strategy from the result.