Data Driven Customer Segmentation for Vietnamese SMEs in Big Data Era

Authors

  • Pham Thi Tam Lien Chieu Ditstrict, Danang city, Vietnam
  • Duong Minh Son Dong A University, Danang city, Vietnam
  • Trinh Le Tan FPT University, Danang city, Vietnam
  • Hoang Ha University of Economics, The University of Danang, Da Nang, 550000, Vietnam

DOI:

https://doi.org/10.30564/mmpp.v3i2.3553

Abstract

Almost Vietnamese big businesses often use outsourcing services to do marketing researches such as analysing and evaluating consumer intention and behaviour, customers’ satisfaction, customers’ loyalty, market share, market segmentation and some similar marketing studies. One of the most favourite marketing research business in Vietnam is ACNielsen and Vietnam big businesses usually plan and adjust marketing activities based on ACNielsen’s report. Belong to the limitation of budget, Vietnamese small and medium enterprises (SMEs) often do marketing researches by themselves. Among the marketing researches activities in SMEs, customer segmentation is conducted by tools such as Excel, Facebook analytics or only by simple design thinking approach to help save costs. However, these tools are no longer suitable for the age of data information explosion today. This article uses case analysing of the United Kingdom online retailer through clustering algorithm on R package. The result proves clustering method’s superiority in customer segmentation compared to the traditional method (SPSS, Excel, Facebook analytics, design thinking) which Vietnamese SMEs are using. More important, this article helps Vietnamese SMEs understand and apply clustering algorithm on R in customer segmenting on their given data set efficiently. On that basis, Vietnamese SMEs can plan marketing programs and drive their actions as contextualizing and/or personalizing their message to their customers suitably

Keywords:

Data driven; Customer segmentation; Behavioural segmentation; Clustering; Agglomerative

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How to Cite

Tam, P. T., Son, D. M., Tan, T. L., & Ha, H. (2021). Data Driven Customer Segmentation for Vietnamese SMEs in Big Data Era. Macro Management & Public Policies, 3(2), 33–43. https://doi.org/10.30564/mmpp.v3i2.3553

Issue

Vol. 3 , Iss. 2 (June 2021)

Article Type

Articles

License

Copyright © 2021 Author(s)

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This is an open access article under the Creative Commons Attribution-NonCommercial 4.0 International (CC BY-NC 4.0) License.