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<HTML>  <HEAD>    <!--SCRIPT LANGUAGE="JavaScript" SRC="http://a1835.g.akamai.net/f/1835/276/3h/www.netlibrary.com/include/js/dictionary_library.js"></SCRIPT>    <SCRIPT LANGUAGE="JavaScript">      if (!opener){document.onkeyup=parent.turnBookPage;}    </SCRIPT!-->    <META HTTP-EQUIV="Cache-Control" CONTENT="no-cache">    <META HTTP-EQUIV="Pragma" CONTENT="no-cache">    <META HTTP-EQUIV="Expires" CONTENT="-1"><META http-equiv="Content-Type" content="text/html; charset=windows-1252"><SCRIPT>var PrevPage="Page_44";var NextPage="Page_46";var CurPage="Page_45";var PageOrder="57";</SCRIPT>  <TITLE>Document</TITLE>  </HEAD>  <BODY BGCOLOR="#FFFFFF"><CENTER><TABLE BORDER=0 WIDTH=100% CELLPADDING=0><TR><TD ALIGN=CENTER>  <TABLE BORDER=0 CELLPADDING=2 CELLSPACING=0 WIDTH=100%>  <TR>  <TD ALIGN=LEFT><A HREF='Page_44.html'>Previous</A></TD>  <TD ALIGN=RIGHT><A HREF='Page_46.html'>Next</A></TD>  </TR>  </TABLE></TD></TR><TR><TD ALIGN=LEFT><P><A NAME='JUMPDEST_Page_45'/><A NAME='{1AF}'/><TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH='100%'><TR><TD ALIGN=RIGHT><FONT FACE='Times New Roman, Times, Serif' SIZE=2 COLOR=#FF0000>Page 45</FONT></TD></TR></TABLE><A NAME='{1B0}'/><TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0><TR>  <TD ROWSPAN=5></TD>  <TD COLSPAN=3 HEIGHT=12></TD>  <TD ROWSPAN=5></TD></TR><TR>  <TD COLSPAN=3></TD></TR><TR><TD></TD>  <TD><FONT FACE='Times New Roman, Times, Serif' SIZE=3>growth of online data. Hypothesis-based methods of data analyses are very time-consuming, while current website analysis tools are very limited in discovering the features of site visitors and customers.</FONT></TD><TD></TD></TR><TR>  <TD COLSPAN=3></TD></TR><TR>  <TD COLSPAN=3 HEIGHT=1></TD></TR></TABLE><A NAME='{1B1}'/><TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0><TR>  <TD ROWSPAN=5></TD>  <TD COLSPAN=3 HEIGHT=17></TD>  <TD ROWSPAN=5></TD></TR><TR>  <TD COLSPAN=3></TD></TR><TR><TD></TD>  <TD><FONT FACE='Times New Roman, Times, Serif' SIZE=3><B>The Complexity of Loyalty</B></FONT></TD><TD></TD></TR><TR>  <TD COLSPAN=3></TD></TR><TR>  <TD COLSPAN=3 HEIGHT=1></TD></TR></TABLE><A NAME='{1B2}'/><TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0><TR>  <TD ROWSPAN=5></TD>  <TD COLSPAN=3 HEIGHT=12></TD>  <TD ROWSPAN=5></TD></TR><TR>  <TD COLSPAN=3></TD></TR><TR><TD></TD>  <TD><FONT FACE='Times New Roman, Times, Serif' SIZE=3>The most valuable assets a website has are its customers&#151;especially loyal customers, who return again and again over a period of time. The value of customers can be measured according to their lifetime value (LTV), i.e., the duration of their relationship with a site and the amount of money they spend during that time. As electronic retailing has evolved, sites have begun to find it profitable to group their clients into LTV classes with unique marketing needs. The retailer can then tailor its marketing activities according to different customer objectives and their potential worth to their site. The more loyal, and profitable, a client is, the more perks and incentives he/she is provided.</FONT></TD><TD></TD></TR><TR>  <TD COLSPAN=3></TD></TR><TR>  <TD COLSPAN=3 HEIGHT=1></TD></TR></TABLE><A NAME='{1B3}'/><TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0><TR>  <TD ROWSPAN=5></TD>  <TD COLSPAN=3 HEIGHT=12></TD>  <TD ROWSPAN=5></TD></TR><TR>  <TD COLSPAN=3></TD></TR><TR><TD></TD>  <TD><FONT FACE='Times New Roman, Times, Serif' SIZE=3>Distilling the value of customers involves in-depth market research and analysis. In a forms database with thousands of records and hundreds of attributes, how do you determine the demographic and psychographic attributes that distinguish valuable visitors from less profitable ones? At what point do you differentiate between ''high&quot; and &quot;premium&quot; customers? How do you find hidden groups of new users, brand switchers, dormants, upgraders, recent winbacks, and all the other clusters of customer classes? In short, how do you measure loyalty? The answer is in data mining.</FONT></TD><TD></TD></TR><TR>  <TD COLSPAN=3></TD></TR><TR>  <TD COLSPAN=3 HEIGHT=1></TD></TR></TABLE><A NAME='{1B4}'/><TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0><TR>  <TD ROWSPAN=5></TD>  <TD COLSPAN=3 HEIGHT=12></TD>  <TD ROWSPAN=5></TD></TR><TR>  <TD COLSPAN=3></TD></TR><TR><TD></TD>  <TD><FONT FACE='Times New Roman, Times, Serif' SIZE=3>A company's customer database can have hundreds of fields recording different types of interactions both offline and online culled from various contact points including a firm's website:</FONT></TD><TD></TD></TR><TR>  <TD COLSPAN=3></TD></TR><TR>  <TD COLSPAN=3 HEIGHT=1></TD></TR></TABLE><A NAME='{1B5}'/><TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH='100%'><TR><TD HEIGHT=12></TD></TR><TR><TD><TABLE CELLSPACING=0 WIDTH=583 CELLPADDING=5><TR><TD WIDTH=217 VALIGN=TOP><FONT FACE='Times New Roman, Times, Serif' SIZE=2><B>Data Field</B></FONT></TD><TD WIDTH=366 VALIGN=TOP><FONT FACE='Times New Roman, Times, Serif' SIZE=2><B>Customer Attribute</B></FONT></TD></TR><TR><TD WIDTH=217 VALIGN=TOP><FONT FACE='Times New Roman, Times, Serif' SIZE=2>Field 1</FONT></TD><TD WIDTH=366 VALIGN=TOP><FONT FACE='Times New Roman, Times, Serif' SIZE=2>Account start date</FONT></TD></TR><TR><TD WIDTH=217 VALIGN=TOP><FONT FACE='Times New Roman, Times, Serif' SIZE=2>Field 2</FONT></TD><TD WIDTH=366 VALIGN=TOP><FONT FACE='Times New Roman, Times, Serif' SIZE=2>Number of purchases</FONT></TD></TR><TR><TD WIDTH=217 VALIGN=TOP><FONT FACE='Times New Roman, Times, Serif' SIZE=2>Field 3</FONT></TD><TD WIDTH=366 VALIGN=TOP><FONT FACE='Times New Roman, Times, Serif' SIZE=2>ZIP code</FONT></TD></TR><TR><TD WIDTH=217 VALIGN=TOP><FONT FACE='Times New Roman, Times, Serif' SIZE=2>Field 798</FONT></TD><TD WIDTH=366 VALIGN=TOP><FONT FACE='Times New Roman, Times, Serif' SIZE=2>Total number of visits</FONT></TD></TR><TR><TD WIDTH=217 VALIGN=TOP><FONT FACE='Times New Roman, Times, Serif' SIZE=2>Field 799</FONT></TD><TD WIDTH=366 VALIGN=TOP><FONT FACE='Times New Roman, Times, Serif' SIZE=2>Average length of visits</FONT></TD></TR><TR><TD WIDTH=217 VALIGN=TOP><FONT FACE='Times New Roman, Times, Serif' SIZE=2>Field 800</FONT></TD><TD WIDTH=366 VALIGN=TOP><FONT FACE='Times New Roman, Times, Serif' SIZE=2>Monthly access rate</FONT></TD></TR></TABLE></TD></TR></TABLE><BR><A NAME='{1B6}'/><TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0><TR>  <TD ROWSPAN=5></TD>  <TD COLSPAN=3 HEIGHT=12></TD>  <TD ROWSPAN=5></TD></TR><TR>  <TD COLSPAN=3></TD></TR><TR><TD></TD>  <TD><FONT FACE='Times New Roman, Times, Serif' SIZE=3>In order to construct a customer loyalty model, you must discover two key items in the data: the significant <I>attributes</I> and <I>intervals</I>,</FONT><FONT FACE='Times New Roman, Times, Serif' SIZE=3 COLOR=#FFFF00><!-- continue --></FONT></TD><TD></TD></TR><TR>  <TD COLSPAN=3></TD></TR><TR>  <TD COLSPAN=3 HEIGHT=1></TD></TR></TABLE><A NAME='{1B7}'/></FORM></P></TD></TR></TABLE><P><FONT SIZE=0 COLOR=WHITE></CENTER><A NAME="bottom">&nbsp;</A><!-- netLibrary.com Copyright Notice -->  </BODY></HTML>

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