Profitability of Customer Satisfaction Segments: Genetic Algorithm Method in Multidimensional Clustering

Abstract:

Due to limited recourses it is difficult for companies to reach a 100% satisfaction level of all customers in all measured factors. Therefore it is argued in this study that the profitability of customer segments is the key driver which companies should take into account in the improvement process of customer satisfaction. The study presents the use of multidimensional genetic algorithm clustering as the efficient method which allows to divide existing customers of a company into relatively homogenous segments according to their satisfaction with the selected factors and on the basis of the profitability of each segment to identify different strategies for the satisfaction improvement process. The suggested procedure is demonstrated on the real data from the field of tea products.
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