Impact of Customer Segmentation and Customer Loyalty With Reference to Big Data

Literature Review

A person who is being characterized distinctly or who possesses like differently or unique from set of people and uniquely identifies his/her own needs or wants is defined as Individual which is also stated as Customer in today’s Global Market. Every organization or company is in attendance in global competition market, if their customers are their leading/ruling pillars of their business, then profit/gain exists.

Today is an era of Intense/aggressive Competition, brands are competing and entering into Heterogeneous model or conglomerate model by which they want to more & more customers into their space. On the other hand, if we take a situation where brands & their services are on left hand side of the equation, customer demands satisfaction and an extra edge or a superior value which is right side of equation. If Brand is able to balance both the sides of the equation, then brand has come over the solution of retaining the customers which is more profitable then acquiring new customers. As it is more costly for a brand to acquire new customers rather to retain the old customers.

It's not easy to cater an Individual’s demands one to one, but here Segmentation plays the game which helps brand to forming a community of people with similar interest and qualities.

A Cluster of people which are grouped under same interest and age groups which differentiates them from other society is known as Customer Segmentation. Customer or Individual are based on different sets of data for e.g., Demographics, geographics. As Customer retention and acquisition cost is marginal high, segmentation helps in achieving organizations to became more customer centric and helps in optimizing product pricing across different products.