Customer Segmentation

There is no such thing as a standard customer. In today's competitive market place companies are constantly battling with each other to build and protect their customer base and maximise the spending of their customers. In order to thrive under these conditions a company needs to understand their customers in order to ensure that they can respond to their needs and provide the goods and services they require.

Customer segmentation involves building models of customers, understanding the source and triggers for the customers before building and testing actionable strategies to respond to the needs of the customers. This process starts with relatively basic models such as Pareto and RFM prior to drilling down into segments to obtain a clearer understanding of the customers needs and drivers.