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 along an 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 along an important purchase criteria, making it easier for marketers to identify patterns and similarities among their customers. By doing so, marketers can tailor their marketing strategies and messaging to specific clusters for more effective targeting and higher conversion rates. Option A is incorrect because customer clustering does not involve purchasing names from direct marketing vendors. Option B is incorrect because it does not accurately describe the process of customer clustering. Option D is incorrect because it does not include the important factor of clustering along a purchase criteria.

Customer Clustering Is Attractive to Marketers Because It