Market Segmentation Tools

Overview

Once a set of customer data has been obtained, there are a number of different statistical and machine learning tools that a marketer can use to analyze the data.

Attributes

In order to segment customers into groups, one must select a set of customer attributes to use to do the sorting.

• Demographic Information
• Income
• Total Customer Spend
• Customer Engagement
  • Time on a Site
  • Site Visits
  • Number of Page Views

Statistical Inference

Once a set of market segments have been identified, it may useful to use the tools of statistical inference to assess how different samples are from the various segments. A standard test is the statistical test of Comparing Two Samples to test whether they are statistically identical for any of their properties.

Machine Learning Algorithms

• Clustering : Clustering refers a set of machine learning algorithms designed to find natural clusters within a dataset.
• Trees : Clustering refers a set of machine learning algorithms designed to find natural clusters within a dataset.