The main intention behind clustering or market segmentation is target marketing, right?
If I name my clusters according to the course (well-off, fewer-opportunities, standard, career focused), it does not give a clear idea on who our target will be! Also the mean values of each attribute for each segment say so much more. For eg. the standard cluster (cluster no. 2) consisted of 85% female out of which 99% were married & their mean education was university but their mean occupation showed that they were either unemployed or skilled. Isn’t it better to name this cluster as ‘Female, Married, Family focused’ rather than ‘standard’?
Could you help me get better at naming my clusters? Is there any material that I can go through to get better at understanding my clusters?
the main goal of naming the clusters it to have names that are meaningful to you(or your marketing team). So you’re welcome to name the segments any way you deem fit.
This is how I named the clusters after analyzing the segmented data.
- Standard => Young Married Women
- career focused => Well off Bachelors
- fewer opportunities => Independent Freelancers
- well-off => Old Married Well off People
If there is any possibility you could analyze the segmented data to see if the way I named the segments makes sense then that would be of great help 😀
The only suggestion I would make is to try and keep the names of the segments more neutral.
If the first segment is called ‘Young Married Women’, then the second would have to be something like ‘Unmarried Men mid 30s’. The last one could be ‘Well off Married in their 50s’ group, or something in those lines.
Otherwise it might send the wrong message. That aside, excellent work on the names!
Thank you for that invaluable piece of advice. I will change it accordingly. Have a great day 😀