Customer Segmentation in the Power of Attorney Business by Means of Fuzzy Clustering

Abstract

Abstract

Over the past years, a large market for service providers for powers of attorney has emerged in Germany. In general, the market contains all segments of the population. Not much research in the field of customer segmentation and marketing campaign preparation can be found on this industry. In this paper a real-world example of a service provider with more than 80,000 customers is analyzed. First, we compare the actual regional demographic structures of Germany’s population with the regional structures of the customer base. The data on underrepresented population groups can be used for targeting when future marketing campaigns are prepared. Second, deterministic and fuzzy cluster approaches will be transferred to the use case and suitable configurations are explored. Finally, a recommendation, which of the analyzed approaches is most suitable in the present case will be given. The promising findings can be transferred to many other areas.