Hands-On Data Science for Marketing

Customer segmentation

Customer analytics can also be used to identify different groups of customers based on their behavior. Customer segmentation is a good example and outcome of customer analytics. Through identifying subgroups of similar customers, you can better understand the target populations. For example, the marketing strategy for low-engagement customers should be different from the marketing strategy for high-engagement customers. By effectively segmenting the customer base by the level of engagement, you can have a deeper understanding of how different groups of customers behave and react to different marketing strategies. This further helps you better target certain subgroups of customers.