Customer Segments Quiz

What you'll be asked

1. What is the primary purpose of customer segmentation in data analysis?
2. A retail company wants to identify customers who have not made a purchase in the last 6 months but were highly active previously. Which segmentation approach should they use?
3. When enriching customer data with third-party datasets, what is the most important prerequisite for maintaining data integrity?
4. You have segmented your customers by 'Average Order Value' and 'Category Preference'. Why might this hybrid segment approach be more effective than a single-variable segment?
5. A company performs K-means clustering on customer data but finds that the clusters overlap significantly. What is the most likely technical cause and solution?

Answers and explanations come after you submit.