The importance of customer segmentation in business successionManjiri Ranade
The key criterion for any business to be successful is knowing your customers well. Knowing them well even before they become your customers. The organizations work hard to identify their target audience.
Customer segmentation is very useful in
- Taking the decision about where to place your advertisements, what content to use, to use the marketing budget effectively
- Defining the customer needs that can be addressed by the product
- Personalizing the product and service offerings
Data science can be used to analyzing customer data for finding insights and patterns. The data available is usually too large to be processed manually or even with analytics tools.
Machine learning clustering algorithms like K-means can be very useful in creating customer segments, which then can be used to focus the sales and marketing efforts.