Considering the segmentation problem of banking customers which has lot of dynamism involved into it. Can anyone suggests the end to end approach to solve this problem so that we can capture the demographics as well as the transaction behavior of the customer. What are the clustering techniques and its input features for this problem?
In this kind of problem, you can use a multicriterion segmentation problem with two axes: the descriptive axe (such as age, revenu...) and behaviol axe (as recency, profitability...)
You can explore this paper:
http://ieeexplore.ieee.org/xpl/login.jsp?tp=&arnumber=7028674&url=http%3A%2F%2Fieeexplore.ieee.org%2Fxpls%2Fabs_all.jsp%3Farnumber%3D7028674
http://ieeexplore.ieee.org/xpl/login.jsp?tp=&arnumber=7028674&url=http%3A%2F%2Fieeexplore.ieee.org%2Fxpls%2Fabs_all.jsp%3Farnumber%3D7028674
I used two step cluster analysis to identify consumers' awareness and use of food label information. The name of research papers are "Statistical Analysis on Consumers' Use of Food Labels" and "FACTORS ASSOCIATED WITH CONSUMERS' AWARENESS AND USE OF INFORMATION ON FOOD LABELS ". They are in my profile.
In addition to the answers as already provided, you may also consider to segment retail customers based on profitability. The following reference may provide an alternative segmentation strategy besides the articles already mentioned.
Storbacka, K., 1997. Segmentation based on customer profitability—retrospective analysis of retail bank customer bases. Journal of Marketing Management, 13(5), pp.479-492.
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