Marketers often need a strategically oriented breakdown of their customer base to support several activities.

  • Development of specialized creative messages
  • Selection of products that are targeted at different segments
  • Choosing media to reach particular types of customers

In a large customer database it is often not clear what the most useful set of customer segments would be to support these activities. Cluster Analysis is a multi-variate statistical methodology that can be deployed to identify possible segmentation solutions. Effective use of Cluster Analysis requires a very close working interaction between analysts and the various company functional areas that expect to use the resulting segmentation.

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