Segmentation modeling algorithm: a novel algorithm in data mining

Many enterprises have accumulated a large amount of data over time. To achieve competitive advantages, enterprises need to find effective ways to analyze and understand the vast amounts of raw data they have. Different methods and techniques have been used to reduce the data volume to a manageable level and to help enterprises identify the business value from the data sets. In particular, segmentation methods have been widely used in the area of data mining. In this paper, we present a new algorithm for data segmentation which can be used to build time‐dependent customer behavior models. The proposed model has the potential to solve the optimization problem in data segmentation.