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Customer Segmentation


Customer segmentation is the practice of dividing a company’s customers into groups that reflect similarity among customers in each group. The goal of segmenting customers is to decide how to relate to customers in each segment in order to maximize the value of each customer to the business.
Types of Customer Segmentation in the industry : CLV Focused Customer Segmentation, Segment via Cluster Analysis, RFM (Recency, Frequency, Monetary ) Segmentation

Benefits for the company

Accurate customer segmentation allows marketers to engage with each customer in the most effective way. A customer segmentation analysis allows marketers to identify discrete groups of customers with a high degree of accuracy based on demographic, behavioral and other indicators.



Type of expertise/ AI domain

Clustering Analysis, Machine Learning for sophisticated large amounts of data

Internal data required

Customer Profile, Purchase data, Customer Lifetime Value Calculations

External data possible

Merchant Transaction data, Potential Customers leads

Research Paper

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