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sample sizes, statistical analysis, 145

median customer lifetime value, 387

sample variation, statistics, 129

retention curves, 386“389

SAS Enterprise Miner Tree Viewer

truncated mean lifetime value, 389

tool, 167“168
retrospective customer value, 115

scalability, data mining, 533“534
revenue, behavior-based variables,

scaling, automatic cluster detection,
581“585

363“364

revolvers, behavior-based

scanners, point-of-sale, 3

variables, 580

scarce data, 62

RFM (recency, frequency, and

SCF (sectional center facility), 553

monetary) value, 575

schemata, generic algorithms, 434,

ring diagrams, as alternative to

436“438
decision trees, 199“201

scores

risks

bizocity, 112“113

hazards, 403

cutoff, 98

proof-of-concept projects, 599

decision trees, 169“170

ROC curves, 98“99, 101

good response, 34

root sets, link analysis, 333

index-based, 92“95

RuleQuest Web site, 190

model deployment, 84“85

rules

propensity-to-respond, 97

association rules

proportional, census data, 94“95

actionable rules, 296

score sets, 52

affinity grouping, 11

scoring platforms, data mining,

anonymous versus identified

527“528
transactions, 308

Index 639


simulated annealing, 230

sorting customers by, 8

single linkage, automatic cluster

z-scores, 551

detection, 369

search programs, link analysis, 331

single response rates, 141

searchable criteria, relevance

single views, customers, 517“518

feedback, 268

sites. See Web sites

sectional center facility (SCF), 553

skewed distributions, data

selection step, generic algorithms, 429

correction, 73

self-organizing map (SOM), 249“251,

SKUs (stock-keeping units), 305

372

small-business relationships, customer

sensitivity analysis, neural networks,

relationship management, 2

247“248

SMP (symmetric multiprocessor), 485

sequential analysis, association rules,

snapshots, customer signatures, 562

318“319

social information filtering, 282

sequential events, applying decision

soft clustering, automatic cluster

trees to, 205

detection, 367

sequential patterns, identifying, 24

SOI (sphere of influence), 38

server platforms, affordability, 13

sole proprietors, 3

service business sectors, customer

solicitation, marketing campaigns, 96

relationships, 13“14

SOM (self-organizing map),

shared labels, fax machines, 341

249“251, 372

short form, census data, 94

source systems, 484, 486“487, 594

short-term trends, 75

special-purpose code, 595

sigmoid action functions, neural

sphere of influence (SOI), 38

networks, 225

spiders, web crawlers, 331

signatures, customers

splits, decision trees

assembling, 68

on categorical input variables, 174

business versus residential

chi-square testing, 180“183

customers, 561

discussed, 170

columns, pivoting, 563

diversity measures, 177“178

computational issues, 594“596

entropy, 179

considerations, 564

finding, 172

customer identification, 560“562

Gini splitting criterion, 178

data for, cataloging, 559“560

information gain ratio, 178, 180

discussed, 540“541

intrinsic information of, 180

model set creation, 68

missing values, 174“175

snapshots, 562

multiway, 171

time frames, identifying, 562

on numeric input variables, 173

similarity and distance, automatic

population diversity, 178

cluster detection, 359“363

purity measures, 177“178

similarity matrix, 368

reduction in variance, 183

similarity measurements, MBR,

surrogate, 175

271“272

spreadsheets, results, assessing, 85

Simplifying Assumptions Corporation

(SAC), 97, 100

640 Index

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