Customer targeting method by using SVM for the purpose of Up Selling

Abstract

One approach for retailers to increase the sales is distributing coupons.
There are several ways to use coupons for sales expansion such as increasing the variety of items one customer will buy and increasing the number of customers who visit stores. In this paper, we set the objective as increasing the paying amount by one customer with up-selling strategy.
The challenge here is how efficiently/effectively distribute the target item coupon to proper prospects.
We propose the prospect customer targeting method using SVM and evaluate the value of the proposed approach using retailers' POS data and coupon data.