Consumer Life Cycle and Profiling: A Data Mining Perspective

Abstract

With the development of technology and continuously increasing of the market demand, the concept to produce better merchandises is generated in the companies. Each customer wants an individual approach or exclusive product, which creates the concept: "one customer one product." The implementation of the one-to-one approach in the current days is the main exciting task of companies. Millions of customers lead to millions of exclusive products from the manufactures' views. It is the primary step to study the needs of customers in the market economy. The main task for a company is to know the customer and to provide their desired products and services. In order to get knowledge ahead of the customers' wishes, a system of profiling potential customers is created accordingly. This chapter provides the review of the customer lifetime from the reach customer (claim future customer's attention) to the loyalty customer (turn a customer into a company advocate). During the discussion about the customer lifetime, readers will get acquainted with such technologies as funnel analysis, data management platform, customer profiling, customer behavior analysis, and others. The listed technologies in a complex will be created as the one-to-one product or service with a high Return on Investment (ROI).