Abstract

Making more accurate marketing decisions by managers requires building effective predictive models. Typically, these models specify the probability of customer belonging to a particular category, group or segment. The analytical CRM categories refer to customers interested in starting cooperation with the company, customers who purchase additional products or customers intending to resign from the cooperation. During building predictive models researchers use analytical tools from various disciplines with an emphasis on their best performance. This article attempts to build a hybrid predictive model combining decision trees and cluster analysis. During experiments five different cluster validity indices and eight datasets were used. The performance of models was evaluated by using popular measures such as: accuracy, precision, recall, G-mean, F-measure and lift in the first and in the second decile. The authors tried to find a connection between the number of clusters and models' quality.