Monthly Archives: November 2010

The Five Most Important Characteristics of a Good Segmentation Scheme

1. The intra distance among members of a segment with key multi-dimensional factors is the minimum while inter distance between segments at the mean of those multi-dimensional factors is maximum (Optimization 1)
2. The contribution of the single most outcome measure (opportunity value segments) almost equally contributed by each of the segment (Optimization 2); this is more of tradition.
3. The persona defined using (behavior/demographics) comes with high resolution (variance in persona factors are minimum possible) picture (Optimization 3) among segments
4. The strategic designing process as a non-supervised learning in coming out with a segmentation scheme with the above characteristics is that these factors hold good simultaneously

Ask your vendor or your analyst to explain these and provide explainable evidence of these.

From Data Monster & Insight Monster