DA0-001 Question #11: Real Exam Question with Answer & Explanation

Question

A company's marketing department wants to do a promotional campaign next month. A data analyst on the team has been asked to perform customer segmentation, looking at how recently a customer bought product, at what frequency, and at what value. Which of the following types of analysis would this practice be considered?

Options

• APrescriptive
• BTrend
• CGap
• DCuster

Explanation

Customer segmentation is the practice of dividing a customer base into smaller groups based on common characteristics such as demographics, buying behaviors, or psychographic traits. In this case, the analyst is looking at three characteristics: how recently a customer bought a product, how frequently they bought, and the value of their purchases. By grouping customers based on these characteristics, the company can tailor its promotional campaign to different segments, ensuring that the right message and offer is being communicated to the right people. Customer segmentation is considered a descriptive analysis, as it involves looking at the data and grouping it into meaningful categories. This type of analysis is often used in marketing and sales to better understand customer behavior and develop targeted strategies for customer engagement and retention. By using customer segmentation, companies can more effectively allocate their marketing resources and create more personalized experiences for their customers.

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