In the context of population segmentation, audience & customer clustering analysis is the use of a mathematical model to discover groups of relevant people based on finding the smallest variations among them within each group. These homogeneous groups are known as “Micro Clusters” .
The goal of cluster analysis in the field of E commerce Marketing , is to accurately segment customers in order to achieve deeper understanding with the segment for a more effective communication via personalization.
Main characteristics of the cluster approach:
2. Homogeneity — the variation within each group is very small — so this is an optimal way to tailor decisions to cluster members.
1. Efficiency — Micro-Clusters based analysis is the best tool for creating a quick multidimensional picture of any population.
3. Predictability — understanding the attitudes of a specific Micro-Cluster allows you to follow them over time and predict their reaction to evolving events.
What are the benefits to your online store ?
In-depth familiarity with different audiences in the society
– Understanding trends
– Understanding audience behaviors, attitudes and needs
– Predicting behaviors and preferences
– Providing actionable insights — improving campaigns, dialog and interaction with the relevant target audience.