Customer Segmentation

Know who your most profitable clients are

The retail current setting is highly competitive in which the players compete in every stance for customer preference. This extreme competition pushes retailers to expand their focus on customer insight and knowledge creation processes.

Data on consumer behaviour is critical as a basis for retailers to adapt their assortments, prices and promotions to each customer in order to maximize their profit.

Business Driver

By successfully clustering consumers into segments based on their profitability, the retailer can better position itself on the market to better fulfill each customer expectation.

Data Needed
  • Transaction data by day: Transaction ID, Customer ID, Location ID, Product key, quantity of items, net sales, etc
  • A measure to assess more profitable and less profitable customers
  • Clusters of consumers based on their profitability

Methods Used
  • Clustering Techniques
  • Regression Analysis (different variants)
  • Artificial Neural Network

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InsightOut Analytics

InsightOut Analytics is a consulting firm for Data Science, Machine Learning & AI.

We develop complete business solutions which enable our clients to stay competitive in their industries by taking data-driven decisions.

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