Chapter 5. Customer Segmentation

  1. Konstantinos Tsiptsis1 and
  2. Antonios Chorianopoulos2

Published Online: 20 JAN 2010

DOI: 10.1002/9780470685815.ch5

Data Mining Techniques in CRM: Inside Customer Segmentation

Data Mining Techniques in CRM: Inside Customer Segmentation

How to Cite

Tsiptsis, K. and Chorianopoulos, A. (2010) Customer Segmentation, in Data Mining Techniques in CRM: Inside Customer Segmentation, John Wiley & Sons, Ltd, Chichester, UK. doi: 10.1002/9780470685815.ch5

Author Information

  1. 1

    CRM & Customer Intelligence Expert, Athens, Greece

  2. 2

    Data Mining Expert, Athens, Greece

Publication History

  1. Published Online: 20 JAN 2010
  2. Published Print: 15 JAN 2010

ISBN Information

Print ISBN: 9780470685822

Online ISBN: 9780470685815



  • customer segmentation - dividing customers into distinct, meaningful and homogeneous subgroups;
  • market segmentation schemes based on demographics and value information;
  • behavioral and value-based segmentations;
  • segmentation in marketing;
  • segmentation types in consumer markets;
  • value-based segmentation - customers grouped according to their value;
  • behavioral segmentation - segments identified with appropriate clustering models on usage/behavioral data;
  • loyalty segments, associated with specific usage behaviors and customer database attributes;
  • needs/attitudinal-based segmentation - investigating customers' needs, wants, attitudes, preferences;
  • combining data mining and market research-driven segmentations


This chapter contains sections titled:

  • An Introduction to Customer Segmentation

  • Segmentation Types in Consumer Markets

  • Segmentation in Business Markets

  • A Guide for Behavioral Segmentation

  • Segmentation Management Strategy

  • Designing Differentiated Strategies for the Value Segments

  • Summary