Mert Onuralp Gökalp, Ebru Gökalp, Kerem Kayabay, Altan Koçyiğit and P. Erhan Eren
The purpose of this paper is to investigate social and technical drivers of data science practices and develop a standard model for assisting organizations in their digital…
Abstract
Purpose
The purpose of this paper is to investigate social and technical drivers of data science practices and develop a standard model for assisting organizations in their digital transformation by providing data science capability/maturity level assessment, deriving a gap analysis, and creating a comprehensive roadmap for improvement in a standardized way.
Design/methodology/approach
This paper systematically reviews and synthesizes the existing literature-related to data science and 183 practitioners' considerations by employing a survey-based research method. By blending the findings of this research with a well-established process capability maturity model standard, International Organization for Standardization/International Electrotechnical Commission (ISO/IEC) 330xx, and following a methodological maturity development framework, a theoretically grounded model, entitled as the data science capability maturity model (DSCMM) was developed.
Findings
It was found that organizations seek a capability/maturity model standard to evaluate and improve their current data science capabilities. To close this research gap, the DSCMM is developed. It consists of six capability maturity levels and twenty-seven processes categorized under five process areas: organization, strategy management, data analytics, data governance and technology management.
Originality/value
This paper validates the need for a process capability maturity model for the data science domain and develops the DSCMM by integrating literature findings and practitioners' considerations into a well-accepted process capability maturity model standard to continuously assess and improve the maturity of data science capabilities of organizations.
Details
Keywords
Serhat Peker, Altan Kocyigit and P. Erhan Eren
Predicting customers’ purchase behaviors is a challenging task. The literature has introduced the individual-level and the segment-based predictive modeling approaches for this…
Abstract
Purpose
Predicting customers’ purchase behaviors is a challenging task. The literature has introduced the individual-level and the segment-based predictive modeling approaches for this purpose. Each method has its own advantages and drawbacks, and performs in certain cases. The purpose of this paper is to propose a hybrid approach which predicts customers’ individual purchase behaviors and reduces the limitations of these two methods by combining the advantages of them.
Design/methodology/approach
The proposed hybrid approach is established based on individual-level and segment-based approaches and utilizes the historical transactional data and predictive algorithms to generate predictions. The effectiveness of the proposed approach is experimentally evaluated in the domain of supermarket shopping by using real-world data and using five popular machine learning classification algorithms including logistic regression, decision trees, support vector machines, neural networks and random forests.
Findings
A comparison of results shows that the proposed hybrid approach substantially outperforms the individual-level and the segment-based approaches in terms of prediction coverage while maintaining roughly comparable prediction accuracy to the individual-level method. Moreover, the experimental results demonstrate that logistic regression performs better than the other classifiers in predicting customer purchase behavior.
Practical implications
The study concludes that the proposed approach would be beneficial for enterprises in terms of designing customized services and one-to-one marketing strategies.
Originality/value
This study is the first attempt to adopt a hybrid approach combining individual-level and segment-based approaches to predict customers’ individual purchase behaviors.
Details
Keywords
Serhat Peker, Altan Kocyigit and P. Erhan Eren
The purpose of this paper is to propose a new RFM model called length, recency, frequency, monetary and periodicity (LRFMP) for classifying customers in the grocery retail…
Abstract
Purpose
The purpose of this paper is to propose a new RFM model called length, recency, frequency, monetary and periodicity (LRFMP) for classifying customers in the grocery retail industry; and to identify different customer segments in this industry based on the proposed model.
Design/methodology/approach
This study combines the LRFMP model and clustering for customer segmentation. Real-life data from a grocery chain operating in Turkey is used. Three cluster validation indices are used for optimizing the number of groups of customers and K-means algorithm is employed to cluster customers. First, attributes of the LRFMP model are extracted for each customer, and then based on LRFMP model features, customers are segmented into different customer groups. Finally, identified customer segments are profiled based on LRFMP characteristics and for each customer profile, unique CRM and marketing strategies are recommended.
Findings
The results show that there are five different customer groups and based on LRFMP characteristics, they are profiled as: “high-contribution loyal customers,” “low-contribution loyal customers,” “uncertain customers,” “high-spending lost customers” and “low-spending lost customers.”
Practical implications
This research may provide researchers and practitioners with a systematic guideline for effectively identifying different customer profiles based on the LRFMP model, give grocery companies useful insights about different customer profiles, and assist decision makers in developing effective customer relationships and unique marketing strategies, and further allocating resources efficiently.
Originality/value
This study contributes to prior literature by proposing a new RFM model, called LRFMP for the customer segmentation and providing useful insights about behaviors of different customer types in the Turkish grocery industry. It is also precious from the point of view that it is one of the first attempts in the literature which investigates the customer segmentation in the grocery retail industry.