Chapter 8. Segmentation for Retailers

  1. Konstantinos Tsiptsis1 and
  2. Antonios Chorianopoulos2

Published Online: 20 JAN 2010

DOI: 10.1002/9780470685815.ch8

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) Segmentation for Retailers, in Data Mining Techniques in CRM: Inside Customer Segmentation, John Wiley & Sons, Ltd, Chichester, UK. doi: 10.1002/9780470685815.ch8

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



  • segmentation for retailers;
  • retail enterprises, variety of products through different channels to customers with diverse needs;
  • understanding customers - by gaining insight into their needs, attitudes, and behaviors;
  • needs/attitudinal segmentation - gaining insights into customer attitudes and opinions about enterprises;
  • RFM analysis, approach in understanding customer purchase behavior;
  • total RFM cells in case of binning into quintiles;
  • IBM SPSS Modeler (Formerly Clementine) RFM Aggregate Node;
  • RFM cell development through binning;
  • RFM - benefits, usage and limitations;
  • customer segments and product mix


This chapter contains sections titled:

  • Segmentation in the Retail Industry

  • The RFM Analysis

  • Grouping Customers According to the Products They Buy

  • Summary