Performance Analysis of and Neural KNN Networks for Predicting Customer Purchases in a Real Retail Department Store

Abstract

Customer Relationship Management technology plays an important role in business performance. Predicting customer behavior enables the business to better address their customers and enhance service level and overall profit. The aim of this paper is to create models that classify clients and predict their purchases in a real retail department store. A real department store retail transactions dataset will be used and two classification/regression models will be tested on it. The first is based on K-Nearest Neighbors and the other one is based on Neural Networks.