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SAP HANA PAL - K-Means Algorithm or How To Do Cust... - SAP Community-K

The document discusses using a K-means clustering algorithm to segment customers in the telecommunications industry into groups based on their calling patterns. It describes creating a sample dataset of 30 customers that are grouped into 3 segments based on attributes like average call duration, number of calls, time of calls, and SMS usage. The segments could represent personal, small business, and enterprise customers. A table is created with the sample data to demonstrate applying the K-means algorithm to cluster the customers.

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31 views

SAP HANA PAL - K-Means Algorithm or How To Do Cust... - SAP Community-K

The document discusses using a K-means clustering algorithm to segment customers in the telecommunications industry into groups based on their calling patterns. It describes creating a sample dataset of 30 customers that are grouped into 3 segments based on attributes like average call duration, number of calls, time of calls, and SMS usage. The segments could represent personal, small business, and enterprise customers. A table is created with the sample data to demonstrate applying the K-means algorithm to cluster the customers.

Uploaded by

jefferyleclerc
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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3/13/24, 10:08 PM SAP HANA PAL – K-Means Algorithm or How to do Cust...

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SAP HANA PAL – K-Means Algorithm or How to do Customer Segmentation for the
Telecommunications Industry

Former Member


‎03-28-2013 3:11 PM

 5 Kudos

https://community.sap.com/t5/technology-blogs-by-members/sap-hana-pal-k-means-algorithm-or-how -to-do-customer-segmentation-for-the/ba-p/12976696/page/2 1/39


3/13/24, 10:08 PM SAP HANA PAL – K-Means Algorithm or How to do Cust... - SAP Community

So each row in this table will represent a unique customer. Now I need to fill it, but I do not have access to real data, so I
had to build my own dataset. I created 30 different customers (30 rows) that can be grouped in 3 segments:

Segment 1: From Customer ID 1 thru 10. In this segment customers usually have short calls. They originate or receive
a low number of calls. These customers call more in the evening, more often during the weekend and to mobile lines.
They send and receive a fair amount of SMSs. This segment could represent personal mobile users.
Segment 2: From Customer ID 10001 thru 10010. In this segment customers have an average call duration. They
originate or receive an average number of calls. They usually call during business hours and during week days. They
send or receive a small amount of SMSs. This segment could represent small business users.
Segment 3: From Customer ID 20001 thru 20010. In this segment customers usually have long duration calls. They
usually call during business hours and during week days. They usually call to mobile lines and they heavily use SMSs.
This segment could represent enterprise business users.

The resulting table looks like this:

https://community.sap.com/t5/technology-blogs-by-members/sap-hana-pal-k-means-algorithm-or-how -to-do-customer-segmentation-for-the/ba-p/12976696/page/2 5/39

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