Customer Classification using Learning Vector Quantization Neural Network

Abstract

The application of customer relationship for Small-Medium Sized Enterprise (SME) is still at the developmental stage. Knowledge obtained from Customer Relationship Management (CRM) can help SMEs to estimate the profitability of individual accounts. This paper presents a prediction model to identify the customers who are likely to purchase the offered product of a company based on their past purchasing history. Experiments using Learning Vector Quantization Neural Network were conducted to classify the potential customers into the purchasing and non-purchasing categories. The results of experiments reveal that the best parameter to model customer classification using this data set has high accuracy.