Customer-Segmentation-in-Python

Customer Segmentation in Python

• Strategy to group cutomers to enable the business to enable product offerings and marketing strategy

Cohort Analysis

• Cohort Analysis is a descriptive analysis tool, it groups the customers into mutually exclusive cohorts which are then measured over time. It helps in understanding the high level trends better by provding insights across both the product and customer lifecycle.

Types of Cohorts

Time cohorts

• Cohorts are customers who signed up for products or service during a particular time frame. Analysing this cohorts shows the customers behaviour depending on the time they start using the companies products or services. The time could be monthly or quartely or even daily.

Behaviour cohorts

• Are customers who purchase a product or subscribe to a service in the past. It groups customers by the type of product or service they signed up.Customers who signed up for basic level service might have different needs then those who signed up for advanced services.
• Understanding the needs of the different cohorts can help a company design custom made services or products for particular segment.

Size cohorts

• size cohorts refers to various sizes of customers who purchase companies products or services. This categorization can be based on the amount of spending in some period of time after acquistion or the product type that the customer spends most of the older amount in some period of time.