the.com/customer segmentation
treating your customers like they're not all the same idiot with a wallet.
means the practice of splitting a customer base into groups by shared traits or behavior so you can market, price, and build differently for each.
from emerged from 1950s market research as marketers realized mass advertising wasted money on people who'd never buy anyway; Wendell Smith's 1956 paper formalized it against blunt mass marketing.
first formalizedwendell smith, 1956, journal of marketing
rfm modelrecency, frequency, money, still used everywhere
amazon secretsegments down to the individual, not the group
netflix trickover 2000 taste clusters, not demographics
for instance
netflix taste clusters — 2000-plus micro-genres replaced age and gender entirely
starbucks rewards tiers — segments by visit frequency to trigger personalized offers
amazon personalization — each account is effectively its own segment of one
credit card risk bands — banks segment by fico score to set interest rates