Are you a Earthian? You must love to visit Mars!!!
Clustering customers purely based on demography and industry is like saying the above. Not all are same, they are similar! People are similar in one industry, one geographic location.
But are they similar enough to sell your pen? No.
A better way to cluster or group customers is by analyzing their behavior. With the power of data, it is now possible what a group customers would prefer to use.
Some good characteristics to consider:
Clustering customers purely based on demography and industry is like saying the above. Not all are same, they are similar! People are similar in one industry, one geographic location.
But are they similar enough to sell your pen? No.
A better way to cluster or group customers is by analyzing their behavior. With the power of data, it is now possible what a group customers would prefer to use.
Some good characteristics to consider:
- Average Demand Interval
- Frequency of buys
- Recency of purchase
- Monetary value
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