103-2012: CSI: Customer Segmentation Intelligence for Increasing Profits

What will your customer do next? Customers behave differently; they are not all average. Can you simultaneously meet your customers’ needs and improve profitability? You can by communicating and providing better offers to customers based on their behavior and demographics. Segmentation gives you the ability to group customers in many ways: 1) Business rules; 2) Supervised clustering – decision trees, and so on; 3) Unsupervised clustering; 4) Creating segments based on quantile membership. Which one works? That depends on two factors: the business goal and customer attributes. Do you want to increase share of wallet, market share, customer satisfaction, or all three? This presentation covers roles played by business issues and available data, and which SAS ® segmentation technique is appropriate for particular situations.