Abstract: A computer-implemented data mining system that analyzes customer transaction data using Factor Analysis/Retail Data Mining Segmentation. The data is accessed from a relational database, and then a factor analysis function is performed on the data to create a factor loadings matrix that has factors as columns and observed variables from the customer transaction data as rows, wherein each of the observed variables is assigned to one of the factors in the factor loadings matrix that has the maximum value for the row. New variables are derived by means of a factor-scoring method that combines the variables into the factors in the factor loadings table. Customer destination segments are identified from the relational database using the factors. Additional customer destination segments are identified by means of a clustering tool using the derived new variables.