Beyond Demographics: Behavioral Segmentation
Traditional retail segmentation relies on demographics: age, income, location. But behavioral segmentation — based on what customers actually do — is far more predictive of future behavior. AI makes behavioral segmentation accessible to retailers of any size.
The RFM Framework with AI
RFM (Recency, Frequency, Monetary) is the workhorse of retail segmentation. Here is how to use AI to build and interpret RFM segments:
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What you'll learn:
- Define actionable customer segments using RFM (Recency, Frequency, Monetary) analysis with AI
- Generate segment-specific marketing strategies and communication plans
- Use AI to translate raw transaction data into customer personas