It is a common marketing dilemma: Companies know that targeting their customers with greater personalization and timeliness will unlock value, yet customer segmentation strategies often fail to deliver the expected ROI.
The problem is that traditional approaches to customer segmentation are fraught with difficulties. Consider a typical example: A company is seeking to identify customer segments with significant growth potential for a new product it plans to launch. It has captured 50 customer attributes, ranging from age to account tenure, and wants to pinpoint the best six leading indicators to base its segmentation upon. It sounds simple enough, but there are 15 million possible combinations when choosing six from 50 – about the same chance as winning the lottery. If you Ddouble the size of the data set, and the possible combinations total more than 1 billion. Companies need a more advanced approach that can handle infinite numbers of customer attributes, while also taking into account the business objectives of the project, rather than relying on the analytical skills of statisticians. The good news is this exactly what the next generation of customer segmentation solutions, based on artificial intelligence technology, can offer.
Register or login for access to this item and much more
All Information Management content is archived after seven days.
Community members receive:
- All recent and archived articles
- Conference offers and updates
- A full menu of enewsletter options
- Web seminars, white papers, ebooks
Already have an account? Log In
Don't have an account? Register for Free Unlimited Access