Dynamic Topic Modelling for Consumer Segmentation
The importance of meaningful segmentation of consumers from a retail perspective cannot be overstated. Current approaches, however, oversimplifie the situation, most notably by aggregating away time, conflating behaviour based on temporal differences – despite the fact that time, in for example the form of seasons and holidays, has a well known influence on retail behaviour.
Addressing this, a novel technique has been developed. The approach has since been evaluated and applied internationally within two retail companies, considering both consumer and store segmentation and description.