Showing posts with label retail analytics. Show all posts
Showing posts with label retail analytics. Show all posts

Wednesday, December 31, 2008

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