Segmentation Applications in Banking - Data Mining Techniques in CRM: Inside Customer Segmentation - page 280

Table 6.17 ( continued )

Factor Description

8 Volume of total transactions

The next component is associated with the volume of both deposits and withdrawals.
Therefore we can conclude that it constitutes a general measure of the total transaction
volume

9 Time deposits

This component is concerned with time deposits. A high positive value denotes an
increased time deposit balance and an increased share of these products in the
customer's total position

10 Consumer loans

One more component that is linked to a specific product. It is associated with consumer
loan ownership. A high positive value denotes increased consumer loan balances and
an increased share in the customer's total position

11 Credit transactions volume

A component that measures the volume of credit transactions

12 Savings

Assets and savings in particular are related to this component. Since savings balances
are heavily loaded on this component, customers with increased savings balances
(''depositors'') are expected to score high on it

13 Investments

Investment fields (balances and proportion of investment balances) present strong
positive correlations with the last component. Customers with increased investment
balances (''investors'') should have high scores on this component

assessment of the business value and of the business opportunities offered by the
solution.
The first step in the cluster profiling involved an examination of the cluster
centroids and an investigation of the clusters' structure with respect to the
component scores. The profiling continued with a cross-examination of the clusters
with the original inputs and demographics. Specifically, the clusters' structure was
examined with respect to product ownership and utilization, transactional patterns,
late payments of credit cards, loan due balances (arrears), and demographics.
At first, clusters were cross-tabulated with product ownership. Table 6.18
presents the percentage of product owners within each cluster.
Cluster 1 has an increased percentage of owners of time deposits and invest-
ment products, about twice as high compared to the overall ''Mass'' population.