What is Segmentation? Segmentation is a strategic process used in data analysis and business intelligence to divide or categorize data into different segments based on certain criteria. It's highly used in marketing, where it groups customers based on their behaviour, demographics, or interests, ...
A real-world application of hierarchical clustering can be found in customer segmentation for marketing. By grouping customers based on purchasing behavior, demographic data, or web browsing patterns, companies can identify distinct segments within their customer base. For example, an e-commerce retailer...
Financial services firms apply analytics for risk management, fraud detection, and customer segmentation, making informed decisions and providing personalized financial services. Retailers and CPG companies analyze customer data for buying patterns so they can personalize marketing and pricing strategies. Healt...
Another term you might encounter when dealing with data analysis isdata mining– the application of statistical methods to very large and complex datasets with the purpose ofidentifying new patterns. For example, if you want to evaluate the purchasing behavior of certain customer groups, you need t...
Revenue growth and competitive advantage: The more data an organization uses, the clearer its markets become—segmentation, seasonality, competitor trends, and other factors can come together to highlight areas primed for capitalization. With this type of analysis, more actionable options come into foc...
The second method,predictive modeling, is linking many layers of data points that already reflect a behavioral pattern and assessing the outcomes of various decision-making scenarios over a period of time. Customer data segmentationwill identify the variables that cause a shift in a result. Even if...
Our course, Customer Segmentation in Python, explores a range of techniques for segmenting and analyzing customer data, including cohort analysis. Graph showing an example of cohort analysis Time series analysis Time series analysis is a statistical technique that deals with time series data, or trend...
Clustering groups together with similar data is frequently applied to customer segmentation. For example, stores can segment their shoppers by purchase histories to target them in the future. Anomaly detection identifies irregular patterns in data, helping businesses detect fraud, cybersecurity threats, ...
Unsupervised segmentation (akapost hocsegmentation) reverses this process. Here, the segments are discovered, usually with a cluster analysis method. Many kinds of data can be used and merged as needed. Predictive models known as typing tools in marketing research are frequently used to classify res...
Instance segmentation (polygon annotation): Instance segmentation is a computer vision task that involves identifying and localizing each individual object instance within an image or video and assigning a unique label to each instance (polygon points). Imagine this as a more advanced form of object ...