Not all customers are the same
Treating your whole base as one group wastes spend. Segmentation finds the natural clusters so you can speak to each differently.
Two approaches that work
- RFM: score by Recency, Frequency, and Monetary value—simple and explainable.
- K-means clustering: find patterns across many features at once.
- Always profile the segments in plain language before using them.
Make it actionable
A segment is only useful if it changes what you do—different messaging, offers, or service levels. We tie each segment to a concrete next step.