Analytics Recipe Cookbook - Summaries

Customer Segmentation Using Cluster Analysis in Excel

  • 1.  Customer Segmentation Using Cluster Analysis in Excel

    Posted 04-25-2017 06:54 PM

    Introduction: This is a fresh look at customer segmentation using cluster analysis.

    Analysis Overview: In the digital analytics field talk around customer segmentation has been focused on creating custom individualized experiences for each unique visitor to one's site. In theory this sounds great and I know some analysis tools are moving in this direction, but in reality most businesses are not nearly this sophisticated. I use cluster analysis to find objects that are more similar to each other in comparison to others in the same group. This helps to recognize patterns and begin to see why certain customers convert and create a strategy around these customer segments.

    Analysis Benefits:

    1. Understand why certain customers convert on different offers.
    2. Once you understand this behavior you can customize different offers to the segments in order to increase conversion.
    3. Build a customer segmentation strategy based upon their engagement.

    DAA members, go here to view full recipe.

    ------------------------------
    gregory kaminski
    Director, Digital Analytics
    MaassMedia, LLC
    Philadelphia PA
    ------------------------------
    Essential Series: Applying Digital Analytics