This is a continuation of Part 1 where different types and benefits of customer segmentation were introduced. In this article we will focus on three customer segmentation methods that use statistical techniques: cluster analysis (K-Means), cluster analysis (Latent Class Analysis), and Tree analysis (CHAID). Let’s first define a problem and see how each method approaches it. […]
Tag: customer segmentation
Customer segmentation is the practice of segmenting customers based on common characteristics. It is a critical step towards identifying growth opportunities in business and should be carried out before undertaking any of the following actions: Developing customized marketing programs (e.g. campaign optimization) Designing an optimal channel distribution strategy (e.g. brick-and-mortar vs online) Determining appropriate product […]
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Understanding the Customer
“One of the deep secrets of life is that all that is really worth doing is what we do for others.” ~ Lewis Carol IF THE GOAL in life (and business) is to help others, then a good first step would be to try to understand the people we are aiming to help so that […]