Customer Segmentation

Customer segmentation is a technique used by marketers to target their customers more effectively. Customer segmentation involves identification of groups of customers with similar characteristics. For a business to consumer (B2C) company, customer segmentation might involve classifying customers by age, sex, race, employment status etc. Single black professional females aged 25-29 would be a typical customer segment for a B2C company. For a business to business (B2B) company, customer segmentation typically involves classifying customers according to company size, company type, number of employees, turnover etc. Accountancy practices with 5-9 employees generating £100,000 turnover would be an example of a B2B customer segment.

Customer segmentation methodology

At AccuraCast, we can devise a customer segmentation strategy that will suit your business needs specifically. Customer segmentation can be done using clustering or CHAID analysis. Customer segmentation with clustering starts with pre-defined sets of characteristics and just groups customers that fall under the specified categories. Customer segmentation using CHAID analysis on the other hand starts with the overall database and then splits it according to the most important variables until it reaches homogenous sub-groups that cannot be split any further, which are then the customer segments.

We do not offer this as a stand-alone service

Click on the links below to learn more about each of these services.

• What is data mining / data analysis ?
• Customer analysis
• Customer segmentation
• Market segmentation
• Market research