Multi-step workflow for customer segmentation

Attempting to use resources in a parsimonious way, leaders and decision makers should stay focused on how to make the best out of their business. People are different and behave differently, but the different ways of acting show basic patterns most of the time. Consequently, consumers can be sorted into groups based on shared physical, psychological and behavioral factors.

Finding the specific groups of consumers is the basis of market segmentation, a process that can help in finding the best marketing techniques and building stronger relationships with customers. Simply because we know them better. Market segmentation comes in various forms, and many times it’s hard to find the right path.

Here, a multi-step workflow of market segmentation will be presented to help find the best solution based on a dimension reduction approach.

Key takeaways:

1. You will understand the key points in the process of defining customer groups.
2. You will learn techniques to reduce the number of attributes.
3. You will have some practical considerations in market segmentation.