Importance-Induced Customer Segmentation Using Explainable Machine Learning

Seyoung Park, Yilan Jiang, Harrison Kim

Research output: Contribution to journalArticlepeer-review

Abstract

Customer segmentation plays a critical role in enhancing a company's product penetration rate in the market. It enables numerous downstream applications such as customer-oriented product development and trend analysis. Previous approaches to customer segmentation have relied either on survey-based methods or data-driven approaches. However, these methods face challenges such as high human labor requirements or the generation of noisy segments. To address these challenges, this paper proposes a new methodology based on data-driven network construction and an importance-enhanced framework. The framework incorporates two techniques: (1) the utilization of a neural network model to compute feature importance values and (2) the proposal of a novel network connection rule. This framework addresses the limitation of the previous approach, sentiment-polarity-based networking, by connecting customers based on feature importance. We further validated the effectiveness of the framework using three real-world datasets and demonstrated that the proposed method outperformed the previous approach.

Original languageEnglish (US)
Article number044501
JournalJournal of Mechanical Design
Volume147
Issue number4
Early online dateOct 24 2024
DOIs
StatePublished - Apr 1 2025

Keywords

  • customer networks
  • segmentation
  • text mining

ASJC Scopus subject areas

  • Mechanics of Materials
  • Mechanical Engineering
  • Computer Science Applications
  • Computer Graphics and Computer-Aided Design

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