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Every marketer knows that customer segmentation is a fundamental requirement for being able to deliver personalized offerings. Segmenting customers according to their individual geographies, demographics, psychographics, and behaviors allows organizations to deeply understand their customers and tailor compelling messages. Above all, customer segmentation is a driving force in shaping an organization’s go-to-market strategy. Having a deep understanding of precisely who your customer is and which products they prefer (and why) is critical for product development and distribution. However, while customers can be easily segmented by common data or tags such as their purchase history, location, or gender, it is often difficult to segment your customer base with deeper and more nuanced categories when you don’t have data for all your customers.
Effective personalization in the modern world goes beyond evaluating a customer’s generic information by also focusing on undocumented features, such as their traits, values, and desired benefits. AI enables your marketers to understand your customers in unprecedented ways by categorizing each and every customer into predefined categories that you establish. These could be any predefined categories where there exists sample data that can be used to train a model to classify the broader population. For instance, using AI you can successfully segment your entire customer base with predefined features by leveraging survey results. Your marketers will have the ability to accurately predict predefined characteristics of each customer, enabling them to not only tailor personalized offerings but also to have a comprehensive understanding of the aggregate amount of people per segment.
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AI can help organizations across the board, no matter their industry, with a variety of internal and external challenger - from driving operational efficiency and optimizing expenditures to transforming marketing activities and improving forecasting.