Customer Segmenting

Customer segmenting is the process to create customer segments.

You will need a list of customers and an idea about how you want to group the customers, typically using a common attribute or characteristic.

There are an infinite number of attribute to segment on. Which ones you use will depend on what you'll use the segments for.

There are many models or algorithms that can help create segments. [RFM][] and [Cohort Analysis][] are two popular and powerful models used in ecommerce.

Eric Davis

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Topics: Glossary Customer segmenting

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