RISK: the chance that they will stop that behaviour
Typical Features of R/R Segmentation Low Value High Value Low Risk High Risk Dormant Customers Ideal Customers Consistent Customers Inconsistent Customers Note: Consistent = Low Variability Inconsistent = High Variability Prevalent Behaviour (High Counts)
For each segment, create indicator (Is customer in the segment or not? Repeat for all segments.)
Using demographic data (census), consumer survey data, and internal data fit stepwise regression model for each segment indicator – these are the key features that distinguish segment from rest of population.