Frequently Asked Questions

Q3. What is Segmentation?

Data segmentation is a form of data mining in which records (and thus the people or things those records represent) are divided into smaller groups based on characteristics shared by members within the group and not shared by the members of other groups. To put it another way, it is the process of breaking the records into meaningful clumps, classes, or clusters. As such, segmentation is sometimes called “data clustering” or “affinity grouping”.

Segmentation is useful in many situations, including those listed below:

• Marketing: up-selling/cross-selling, designing an ad campaign to reach the various groups (i.e. product positioning and messaging)
• Insurance: fraud detection
• Corporate growth: site selection and auditing
• Industrial: classifying chemical compounds

Visit our Services page to find out more about the types of custom segmentation work we offer in addition to those listed above.

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