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. […]
As I’ve watched the COVID-19 situation unfold, like many of you, I’ve been fearful for the future of the economy and the well-being of individuals around the world. Quite honestly, however, during the first few weeks of the crisis I hadn’t focused on how it would impact my own situation or how it would disrupt […]
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 […]