You've mastered statistical analysis and advanced visualization from our previous sessions. Now let's discover how to find hidden patterns by grouping customers into meaningful segments.
Segmentation reveals that your "average customer" might not actually represent anyone. Instead, you have distinct groups with different needs and behaviors.
Engagement Message
Can you name one drawback of treating every customer identically?
Customer segmentation is like sorting your closet - you group similar items together to understand what you have and make better decisions about each group.
Instead of saying "customers spend $45 on average," you might discover "premium customers spend $120, budget customers spend $15."
Engagement Message
What is one way this insight could reshape your marketing?
Here's the key insight: segments should be actionable. Finding segments is pointless unless you can do something different for each group.
Good segments lead to specific actions: different products, pricing, messaging, or service levels for each group.
Engagement Message
What is one way you might treat high-value customers differently from occasional buyers?
The most common segmentation approach uses multiple characteristics simultaneously. You might segment by purchase frequency AND average order value together.
This creates a 2x2 grid: frequent/high-value, frequent/low-value, occasional/high-value, occasional/low-value customers.
Each quadrant suggests different business strategies.
Engagement Message
Which quadrant would you prioritize for retention efforts?
