Customer Segmentation - Data Mining Techniques in CRM: Inside Customer Segmentation - page 211

Deployment of the Segmentation Solution, Design, and Delivery of
Differentiated Strategies
The segmentation project concludes with the deployment of the segmentation
solution and its use in the development of differentiated marketing strategies and
segmented marketing:
1. Building the customer scoring model for updating the segments: The
deployment procedure should enable customer scoring and updating of the
segments. It should be automated and scheduled to run frequently to enable
the monitoring of the customer base over time and the tracking of segment
migrations. Moreover, because nowadays markets change very rapidly, it is
evident that a segmentation scheme can become outdated within a short time.
Refreshment of such schemes should be made quite often. This is why the
developed procedure should also take into account the need for possible future
revisions.
2. Building a decision tree for scoring - fine tuning the segments: Adeci-
sion tree model can be used as a scoring model for assigning customers to
the revealed clusters. The derived classification rules are understandable and
provide transparency compared to scoring with the cluster model. More impor-
tantly, business users can easily examine them and possibly modify them to
fine-tune the segmentation based on their business expertise. This combined
approach can create stable segments unaffected by seasonal or temporary
market conditions.
3. Distribution of the segmentation information: Finally, the deployment
procedure should also enable distribution of the segmentation information
throughout the enterprise and its ''operationalization.'' Therefore it should cover
uploading of the segmentation information to the organization's databases, as
well as operational systems, in order to enable customized strategies to be
applied across all customers' touch points.
TIPS AND TRICKS
The following tips should be taken into account when planning and carrying out a
segmentation project:
• Take into account the core industry segments before proceeding with the
segmentation project and then decide which core segments need further analysis
and sub-segmentation.