Customer clustering is attractive to marketers because it:
A)creates clusters from names purchased from a direct marketing vendor.
B)allows marketers to identify external data lists that match the firm's target customers.
C)creates clusters of a firm's actual customers based on important purchase criteria.
D)creates clusters based on the profile of a firm's best customers.

Question

Quizplus · Accepted Answer

Customer clustering creates clusters of a firm's actual customers based on important purchase criteria. This helps marketers identify patterns and behaviors among their existing customers, which in turn can inform targeted marketing efforts and improve customer retention. Option A and B do not accurately describe customer clustering, and Option D only focuses on the firm's best customers, rather than the broader customer base.

Customer Clustering Is Attractive to Marketers Because It