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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_318";var NextPage="Page_320";var CurPage="Page_319";var PageOrder="326";</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_318.html'>Previous</A></TD> <TD ALIGN=RIGHT><A HREF='Page_320.html'>Next</A></TD> </TR> </TABLE></TD></TR><TR><TD ALIGN=LEFT><P><A NAME='JUMPDEST_Page_319'/><A NAME='{A89}'/><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 319</FONT></TD></TR></TABLE><A NAME='{A8A}'/><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>retaining them; as such, your marketing efforts will be to reward them. Conversely, with Low value clients, your strategy might be to educate them on your products and services, thus your marketing efforts will be geared toward informing them. In both instances, segmentation of your web customer data can drive the content of how your e-mail campaigns are geared to these separate and distinct customers: one to reward, the other to inform.</FONT></TD><TD></TD></TR><TR> <TD COLSPAN=3></TD></TR><TR> <TD COLSPAN=3 HEIGHT=1></TD></TR></TABLE><A NAME='{A8B}'/><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>Through the mining of your website data and the discovery of the demographic features of your visitors your goal will most likely be to provide them with the type of information, product, and services they are most likely to want. You can also design your website to be more appealing to your visitors by knowing their lifestyles and the type of activities and products they prefer. For example, a website visited by consumers with kids should probably be designed differently from one visited by single males. One of the benefits of e-commerce is the flexibility to narrow your marketing messages based on lifestyle and preferences of your customers. Through the segmentation process you can begin to provide value-enhanced information and services based on the type of content your customers are most likely to be interested in.</FONT></TD><TD></TD></TR><TR> <TD COLSPAN=3></TD></TR><TR> <TD COLSPAN=3 HEIGHT=1></TD></TR></TABLE><A NAME='{A8C}'/><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>To do this type of customer segmentation a data mining tool incorporating machine-learning and statistical algorithms, such as C5.0, ID3, CART, or CHAID, can be used to generate a graphical decision tree. A decision tree is a method of segmenting a data set on the basis of a desired output, such as the total number of purchases made by visitors. For example, a decision tree can be generated in order to explore the differences in the number of sales by such factors as your customers' income, which you can obtain from such household data providers as Polk or Experian. In the decision tree shown in Figure 9-13, an analysis of 10,000 online sales was conducted in order to discover what demographic and transactional factors impacted these online sales. The dependent variable, that is, the output we are segmenting the data on, is the total number of sales made at this website, which you can see varies between 0 (19.4%), 1 (39.4%), 2 (19.8%), 3
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