How do I choose the right segmentation techniques for my data?

How do I choose the right segmentation techniques for my data?

Choosing the right segmentation technique depends on your data type, goals, and the insights you want to gain. What kind of data are you working with?

I have customer data with demographics and purchase history.

For customer data, you might consider techniques like demographic segmentation, RFM analysis, or clustering methods like K-means. What specific insights are you looking to achieve?

I want to identify high-value customers.

In that case, RFM analysis (Recency, Frequency, Monetary) could be very effective. It helps you identify customers who are most valuable based on their purchasing behavior.

How do I implement RFM analysis?

You can start by scoring your customers based on their recency, frequency, and monetary value. Then, segment them into groups based on these scores to identify high-value customers.