AI for Marketing and Product Innovation

11 Applications for Customer Segmentation

As a species, we are very poor at programming. Our brains are built to understand other humans, not computers. We’re terrible at forcing our minds into the precise modes of thought needed to interact with a computer, and we consistently make errors when we try. That’s why computer science and programming degrees take such time and dedication to acquire: we are literally learning how to speak to an alien mind, of a kind that has not existed on Earth until very recently.

– Stuart Armstrong, Smarter Than Us: The Rise of Machine Intelligence, Machine Intelligence Research Institute, 2014

Imagine the next generation of Segmentation where:

• Loyalty, purchase data, and social listening data for customers is collected
• Principal component analysis or factor analysis determines primary contributors to purchase and defines feature sets
• Segmentation is further fine-tuned based on neurographic information
• Algorithmic segmentation is mapped to primary metaphors; emergent and dominant metaphors in the non-conscious mind
• Algorithms perform real-time segmentation of consumers
• Algorithms perform real-time segmentation of media for advertising and use this data to strategize and rationalize media spend.

Customer segmentation is the marketing process of dividing consumers into targetable demographic groups that have certain aspects in common, such as age, gender, occupation, income, hobbies, or spending habits, to name just a few. Large-scale customer ...