Improve the nett result by customer segmentation
Segmentation is the classification of customers into groups that are very similar in value. The advantage is that you can target customers groupwise with the same product offering and associated service level.
Not every customer is worth the same. To improve efficiency and effectiveness begins with the calculation of the customer value. Customer value can be calculated in various ways. This depends on what data are available and on the targets set within an organization.
After the customer value is calculated, you can analyse which customer group represents the most value. In practice, it very often appears that a small group of customers is responsible for the major share of the value. For example, 20 % of the customers represent 80% of the customer value.
Data mining is an excellent tool to make a segmentation on customer value (or behavior) in order to effectively and efficiently tune the marketing budget and target customers groupwise with a similar offer.