Word Bank for Q2: Clustering, Classification, Sequence, Associations

2. We talked about four patterns that can be discovered in data mining. Read the descriptions and fill the corresponding pattern next to each.

a. Mobile phone companies like AT&T, T-Mobile, and Verizon face the challenge of customer churns, i.e., customers who leave to join a competitors service. A common practice is to use data mining to predict customer churn, by combining data on billing, customer service interactions, website visits, and other metrics. This pattern of and the approached used to detect patterns in which customer is likely to churn or not is called ___________________________.

Once they have identified the customers who are likely to churn, they can send the customers targeted offers or incentives to try to retain them.

b. Market basket analysis is frequently used by retailers and restaurants to analyze and predict customer purchasing behaviors. The analysis reveals purchases that commonly happen together and the insights can be used to facilitate cross-selling, make product recommendations, or inform the placement of items on a menu or with other related items in a store. The patterns revealed are termed ____________________.

c. Another data mining technique can be used to group objects or people, such as images, web pages, customers, stores, etc. For example, retailers can use this technique to segment millions of loyalty card users to understand their customers. They can also use the same technique to segment their stores by key attributes such as revenue, profits, or others. This are instances of _____________.

d. Continental Airlines (acquired by United Airlines in 2010) was a pioneer among Airlines companies to use business intelligence. One example is the Goodwill letters campaign. When a valued customer was delayed for more than 90 minutes, the company sent the customer an apology letter or an apology letter with a free trial membership to the Presidents Club. They found that customers who received the letter spent 8% more with the airline in the next 12 months, and nearly 1/3 of those receiving the Presidents Club trial membership joined the club following the trial. The patterns that were uncovered here are ___________________.