Track: Business Analytics
Abstract
The banking industry is very competitive, and to improve their top lines, the bank wants to improve the services offered to their customers. Therefore, the bank spends a lot of time understanding the customer's profile and developing relevant propositions and offers for each customer segment. Given the richness of credit card transactional data, the authors propose how the bank can apply data analytics to profile the customers and understand their spending patterns. In this paper, the authors use RFM analysis to profile the bank customers into various segments, identify the most valuable customers segment, and understand their characteristics and purchasing patterns to promote relevant marketing strategies to increase bank revenue.
Keywords
Segmentation, customer profile, RFM analysis, and credit card transaction.