Customer Lifetime Value or CLV (also erroneously called Lifetime Customer Value or Lifetime Value) is one of the most misunderstood of all marketing metrics. Weirdly, everyone in marketing understands its...
The RFM model is probably one of the best known and most widely used customer segmentation models by data driven marketers. It’s used for both measuring customer value and predicting...
Customer segmentation, and the similar and related field of market segmentation, are particularly relevant to the field of business-to-business (B2B) e-commerce. B2B customers often have a higher Customer Lifetime Value...
The demographics and interests data provided in Google Analytics can be a useful way to understand who is visiting your site or purchasing your products, without the need to perform...
Lead scoring is a Customer Relationship Management (CRM) process that involves segmenting CRM contacts based on their likelihood to make a purchase. Lead scoring is applied to both existing customers...
Customer segmentation is the process of using data science techniques to create discrete groups of customers which share common characteristics or attributes. For example, a company might segment customers into...
Customer segmentation can give you huge insights into your business and identify a whole range of different things about your customers, allowing you to change your marketing and improve results....
K means is one of the most widely used algorithms for clustering data and falls into the unsupervised learning group of machine learning models. It’s ideal for many forms of...
While the Recency, Frequency, Monetary value or RFM model for customer segmentation might be old, it’s based on sound science, so no matter what customer model you’re building, it’s generally...
Cohort analysis is unlike most other customer segmentation techniques in that it typically uses a time-based element. It’s typically used to segment customers into groups, or cohorts, based on their...
Calculating Customer Lifetime Value or CLV is considered a really important thing in marketing and ecommerce, yet most companies can’t do it properly. This clever metric tells you the predicted...
RFM segmentation is one of the oldest and most effective ways to segment customers. RFM models are based on three simple values - recency, frequency, and monetary value - which...
Purchase latency or customer latency is a measure of the number of days between a customer’s orders and is one of the most powerful features in many propensity and churn...
As I explained in my previous post, many B2B ecommerce businesses spend huge amounts on procuring third-party data for companies they wish to target. However, with some data science skills...
In B2B ecommerce, there are two main approaches to new customer acquisition: you either rely on your website to acquire customers for you, or you target specific customers through sales...
Data binning, bucketing, or discrete binning, is a very useful technique for both preprocessing and understanding or visualising complex data, especially during the customer segmentation process. It’s applied to continuous...
