Customer segmentation: THE analytics tool for more customer centricity
Customer segmentation - what is it?
FAQs Customer segmentation
What is the goal of customer segmentation?
How does customer segmentation work?
What is one-dimensional customer segmentation?
What is multidimensional customer segmentation?
Customer segmentation by market: B2C (Business to Customer) vs. B2B (Business to Business)
In the B2C area, the characteristics are typically of the following nature:
- Geographical (e.g. spatial distribution, culture)
- Socio-economic (e.g. age, occupation, income)
- Behavioural (e.g. brand choice, price behaviour)
- Psychographic (e.g. lifestyle, attitude and values of the client)
- Web and app usage behaviour
- Purchase history
- Environmental (e.g. business cycle, industry, government influence)
- Organisational (e.g. legal form, position in the life cycle, company size)
- Individual-related (e.g. information behaviour, decision-making behaviour)
Checklist for customer segmentation
- Relevance - Does the dataset contain characteristics that are meaningful for customer segmentation?
- Quality - Are the data error-free and validated, are there missing entries?
- Quantity - Are there enough data series to cope with the complexity of the characteristics?
"Responding more precisely to customers and thereby creating added value is what all companies strive for. Data science can help considerably in this. This discipline relies on an AI-driven process that takes all the necessary steps in seconds to address customers in a tailor-made way."
Dr Eric Trumm, Head of Data Science Workshop
Video: Definition, benefits and the implementation of your successful customer segmentation
Customer segmentation is the most important instrument for more customer centricity in your company. But what is customer segmentation anyway and what do I need to consider for a successful implementation?
Our video answers this and much more.
- Definition of customer segmentation
- What are the concrete advantages of using customer segmentation in my company?
- What is the approach/implementation for customer segmentation?
What is the approach to customer segmentation?
The implementation process of customer segmentation - if the above checklist is fulfilled - usually takes 4 - 6 weeks.
The process consists of the following 5 steps:
In which system landscape can customer segmentation be integrated?
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