What is the step by step process to be followed to segment customers ?

Lets take the example of segmenting loyalty card holders who use their card to shop at retail store outlets ...

Step-1: Identifying the specific context for shopper segmentation within the organization

Step-2: Creating a universal customer behavior record of the customer from POS, Loyalty and store profile information

Step-3: Configure the segmentation parameters like cluster count, cluster algorithm, maximum input attributes etc

Step-4: Execute the shopper segmentation model and characterize the segments from a business perspective

Step-5: Conduct workshops with business users to explore possibilities of differential treatment of customer segments

Step-6: Having decided on specific segment specific treatment strategies it is necessary to operationalize it in CRM and other campaign management systems and monitor business impact