Overview
This assignment asks you to describe situations in which customer segmentation is useful and carry out a customer segmentation exercise using Excel. Please complete this assignment after reading Sauro Chapters 1, 3, and 4.
Written Assignment: Describe why it might be useful for an organization to analytically evaluate its customers. You may use a real or hypothetical organization as an example if you’d like. Then, using the customer dateset (attached) please describe a hypothetical analytics initiative that you might be able to carry out using this data. What might you be able to explore? What recommendations might you hope to provide to this organization? What fields (columns) might you use in carrying out this analysis? This response should be approximately 3-5 paragraphs in length.
Excel Assignment: Choose one of the below assignments based on your level of comfort and familiarity with Excel.
- Beginner: After reading about clustering data, please describe how the organizers of this dataset may have arrived at the Spending Scores. Which variables might have influenced these data clusters? Your response should be 1-2 paragraphs in length.
- Advanced: Chapter 4 of the reading references cluster analysis as an advanced technique that may be used in Customer Analytics. Watch this video and use Solver to identify clusters in the data (NOTE: You will want to remove the “Spending Score” field before conducting this analysis.)