Which of the following types of analysis would this practice be considered?

A company’s marketing department wants to do a promotional campaign next month. A data analyst on the team has been asked to perform customer segmentation, looking at how recently a customer bought the product, at what frequency, and at what value.

Which of the following types of analysis would this practice be considered?
A . Prescriptive
B . Trend
C . Gap
D . Custer

View Answer

Answer: D

Explanation:

Customer segmentation is a type of cluster analysis, which is a method of grouping data points based on their similarities or differences. Cluster analysis can help identify patterns and trends in the data, as well as target specific groups of customers for marketing purposes. One common technique for customer segmentation is RFM analysis, which stands for recency, frequency, and monetary value. This technique assigns a score to each customer based on how recently they bought the product, how often they buy the product, and how much they spend on the product. These scores can then be used to create clusters of customers with different characteristics and preferences. Therefore, the correct answer is D.

Reference: Cluster Analysis – Statistics Solutions, RFM Analysis: The Ultimate Guide for Customer Segmentation