Lab 7: Customer Segmentation & Business Intelligence

Dated: 13, March 2026

Problem 1)

Refer to Lab 1 (Problem 2(i) and (iii)), you have to incorporate business intelligence in your order processing system by adding customer segmentation analysis.

Customer segmentation is the process of dividing a company’s customer base into smaller, distinct groups that share similar characteristics, such as demographics, behaviors, or preferences.

You are advised to perform segmentation based on customer behavior, mainly considering purchase habits.

Suggested Methodology:

Assumption: Sufficient number of orders are present in the database.

Problem 2)

How can you automate targeted marketing using the above segments?

Hint: For all loyal customers, send them a complimentary gift through courier and a message of thanks via email/SMS.

Problem 3)

Develop test cases for your segmentation analysis platform.

Hints:

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