Segmentation for Retailers - Data Mining Techniques in CRM: Inside Customer Segmentation - page 347

Table 8.2 Customer segments with respect to the product mix.

Segment Purchase patterns Demographics

1. Hobby shop-
pers - single men

Electronics, computers,
movies/music/games,
sports and outdoors

Young men, single

2. Fashion shop-
pers - single women

Apparel/shoes/jewelry,
beauty, books/press,
movies/music/games

Young women, single

3. Average shoppers Home, food and wine,

apparel/shoes/jewelry,
electronics,
movies/music/games,
health and beauty

Young,married,nochil-
dren

4. Family shoppers - full
nest I

Food and wine, home,
baby, toys

Young, married, children
under 5

5. Family shoppers with
children - full nest II

Food and wine, home,
toys, books/press,
movies/music/games

Middle aged, married with
children aged 5 or over

6. Older families/retired Home, food and wine,

pharmacy, books/press

Older, no dependents

revealed a clear separation between age and marital status. This finding confirmed
the initial belief that the product mix would be strongly associated with the family
lifecycle stage of the customers.
The first cluster was dominated by single young men. ''Hobby shoppers''
were characterized by increased relative spending on recreation products such as
electronics, computers, movies/music/games, and sports and outdoors products,
revealing a behavior typical of lively young men with free time and many leisure
activities. ''Fashion shoppers,'' the female counterpart of the first cluster, showed
a similar purchasing profile, with an increased preference for clothes, accessories,
and beauty products.
The segment of ''Average shoppers'' has diverse preferences and spending on
many product categories, including grocery, home, and leisure products. Young,
married customers formed the majority in this cluster. It seems that customers at
this life-stage start to spend on their home and family; however, they still spend
money on themselves and their hobbies.
Different needs and new priorities arise with the birth of a baby. Customers
with high spending on baby products formed a group of their own, the segment