Clustering bank customers based on dynamic and static features provides valuable insights for making efficient decisions in areas such as creating new services or improving customer satisfaction.
Using autoencoders and dynamic time warping in customer clustering yields better results, emphasizing the importance of selecting good features for clustering.
Deep dives
Clustering Bank Customers: Extracting Meaningful Insights
In this podcast episode, the speaker discusses the importance of precision in clustering bank customers and explores other metric algorithms and approaches beyond singularly using k-means. He interviews Eson Barcorter, a data scientist, about his research in clustering bank customers. The main goal is to extract valuable information from customers for making efficient decisions in areas such as creating new services or improving customer satisfaction. The podcast highlights the significance of having tools to extract information about customer types, their interactions, and how they transition between groups. Clustering helps achieve a bird's eye view of customers and aids in making informed decisions.
Feature Engineering in Customer Analytics
The discussion delves into the types of questions that are interesting in customer analytics. The research focuses on dynamic and static features when analyzing customer data. Dynamic features include purchase history, loan payments, etc., while static features include gender, age, and location. Even with seemingly limited information, financial data plays a crucial role, providing meaningful insights into customers' activities and financial behavior. The podcast also mentions the architecture of the research, which includes the use of autoencoders and dynamic time warping. These methods assist in selecting relevant features from transaction data and measuring the similarity or dissimilarity between types of purchases.
Combining Autoencoders and Dynamic Time Warping for Clustering
The episode explores the use of autoencoders as a powerful tool in translating purchase sequences and extracting features. By predicting the next purchase based on previous ones, autoencoders reveal hidden patterns and provide valuable information for clustering. Dynamic time warping, an older technique, measures the similarity between time series, offering insights into the differences between types of purchases. The podcast highlights that combining both techniques yielded significantly better clustering results. It also stresses the importance of selecting good features for clustering rather than focusing solely on clustering methods. The insights obtained through clustering can be utilized in various ways, such as creating personalized services or predicting customer churn.
Have you ever wondered how you can use clustering to extract meaningful insight from a time-series single-feature data? In today’s episode, Ehsan speaks about his recent research on actionable feature extraction using clustering techniques. Want to find out more? Listen to discover the methodologies he used for his research and the commensurate results.