Segmentation is dead!
How do you segment your customers? Based on demographics, or behaviours, or profitability, or life time value? By using data mining techniques, or by using some algorithms?
These segmentations are doomed to fail when it comes to act. You can understand some meanings from the data itself, but you can not act properly by using that type of segmentation.
Instead, you need to form product based segmentation, or package based segmentation and cluster customers based on which products they have currently. In that way, you can assess, which type of new products you can sell to those customers based on packaged product sets.
This is the only practical and pragmatic segmentation that you can develop.
These segmentations are doomed to fail when it comes to act. You can understand some meanings from the data itself, but you can not act properly by using that type of segmentation.
Instead, you need to form product based segmentation, or package based segmentation and cluster customers based on which products they have currently. In that way, you can assess, which type of new products you can sell to those customers based on packaged product sets.
This is the only practical and pragmatic segmentation that you can develop.
