Customer Segmentation Strategy Based on Hybrid Clustering Algorithm

An improved algorithm is put forward to fuse the hierarchical clustering method and the K- means clustering method to solve both the poor scalability of the former and the sensitivity to the initial clustering center of the latter. The computing complexity analysis of the improved algorithm and the test data of UCI database testing results show that the hybrid clustering algorithm increases the sample clustering accuracy to 94% with a higher efficiency and better practicability. In addition,this algorithm is applied to the car sales company in the management of customer segmentation,where the differential is obtained obviously of customer segmentation categories, showing that the improved algorithm has higher detection rate and stronger interpretation ability on customer behaviors.