Optimal threshold analysis of segmentation methods for identifying target customers

  title={Optimal threshold analysis of segmentation methods for identifying target customers},
  author={Makoto Mizuno and Akira Saji and Ushio Sumita and Hideo Suzuki},
  journal={European Journal of Operational Research},
In CRM (Customer Relationship Management), the importance of a segmentation method for identifying good customers has been increasing. For evaluation of different segmentation methods, Accuracy often plays a key role. This indicator, however, cannot distinguish the following two types of errors: Type I Error for misidentifying a good customer as a bad customer and Type II Error for misinterpreting a bad customer as a good customer. In order to analyze the financial effectiveness of various… CONTINUE READING
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