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Customer Segmentation

QUANTOS suggests the application of data driven analytical tools so as to help its clients to enjoy a competitive advantage in the market utilizing the results of this type of analytical solution.

In order to gain a better understanding of a customer, multi variate data segmentation is applied with the goal of identifying the different segments in the population. There are various ways this can be achieved. One of the most reliable is the use of cluster analysis. Clustering and profiling of the customer base can answer the following questions:

  • Who are my customers?
  • How profitable are my customers?
  • Who are my least profitable customers?
  • Why are my customers leaving?
  • What do my best customers look like?

The application of these techniques, results on segment profiling resulted from clustering of pre-processed data. Cluster analysis is not the only technique for customer segmentation and profiling. Decision trees are also commonly used, although they cannot provide results of statistical significance. ?hese are better used complimentary.

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