Please use this identifier to cite or link to this item:
http://hdl.handle.net/10071/30293
Author(s): | Sousa, A. Moro, S. Pereira, R. |
Date: | 2024 |
Title: | Cluster-based approaches towards developing a customer loyalty program in a security private company |
Journal title: | Applied Sciences |
Volume: | 14 |
Number: | 1 |
Reference: | Sousa, A., Moro, S., & Pereira, R. (2024). Cluster-based approaches towards developing a customer loyalty program in a security private company. Applied Sciences, 14(1), 78. https://dx.doi.org/10.3390/app14010078 |
ISSN: | 2076-3417 |
DOI (Digital Object Identifier): | 10.3390/app14010078 |
Keywords: | Loyalty program Clustering Customer segmentation k-means Private security companies |
Abstract: | This study aimed to create a loyalty program for a private security company’s most valuable customers using clustering techniques on a dataset from the company. K-means was employed as an unsupervised machine learning algorithm to segment customers. Performance evaluation metrics, including the silhouette coefficient, were utilized to compare various algorithmic approaches. As a distinctive feature of this study, in addition to the evaluation metric, strategic questionnaires were administered to business decision-makers to facilitate the integrated development of a loyalty program with key stakeholders invested in customer retention and profitability. The results show the existence of three customer clusters with an optimal silhouette coefficient for loyalty program development. Interestingly, the customer group to be targeted for the loyalty program did not exhibit the highest silhouette coefficient metric. Business leaders selected the group they perceived as most efficient for program implementation. Consequently, the study concludes that customer segmentation not only entails statistical analyses of individual user groups but also requires a comprehensive understanding of the business and collaboration with stakeholders. Furthermore, this study aligns with findings from other authors, demonstrating that private security companies can benefit from implementing a loyalty program, although avenues for further investigation remain. |
Peerreviewed: | yes |
Access type: | Open Access |
Appears in Collections: | BRU-RI - Artigos em revistas científicas internacionais com arbitragem científica ISTAR-RI - Artigos em revistas científicas internacionais com arbitragem científica |
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article_99148.pdf | 2 MB | Adobe PDF | View/Open |
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