Data driven customer segmentation and personalization strategies in modern business intelligence frameworks
Statistics, Analytics and Computer Systems, Texas A & M University, USA.
Review Article
World Journal of Advanced Research and Reviews, 2021, 12(03), 711-726
Article DOI: 10.30574/wjarr.2021.12.3.0658
Publication history:
Received on 26 October 2021; revised on 22 December 2021; accepted on 27 December 2021
Abstract:
In an era defined by digital transformation and hyper-competition, businesses increasingly rely on data-driven insights to enhance customer engagement, foster brand loyalty, and drive revenue growth. Central to this approach is the integration of customer segmentation and personalization strategies within modern business intelligence (BI) frameworks. Traditional one-size-fits-all marketing approaches are being replaced by dynamic, data-centric models that classify customers into granular segments based on behavioral, transactional, demographic, and psychographic data. These segments enable firms to tailor messaging, product recommendations, pricing strategies, and service delivery to meet specific customer preferences and expectations. Modern BI ecosystems—powered by big data, machine learning, and advanced analytics—facilitate real-time segmentation and hyper-personalized experiences across touchpoints. From e-commerce platforms leveraging clickstream data to financial institutions using predictive scoring models, the deployment of customer intelligence enables strategic decision-making and customer lifetime value maximization. Furthermore, the integration of sentiment analysis, location data, and social listening expands the breadth and depth of personalization, allowing businesses to proactively meet emerging customer needs. This paper examines the evolution of customer segmentation techniques—from rule-based clustering to AI-driven modeling—and evaluates their impact on customer satisfaction, retention, and cross-selling effectiveness. It also highlights implementation challenges, including data governance, model bias, and integration with legacy systems. Through case study analysis and BI architectural mapping, the research demonstrates how businesses can build agile, responsive, and customer-centric models by embedding intelligent segmentation and personalization into their strategic analytics workflows.
Keywords:
Customer Segmentation; Personalization; Business Intelligence; Predictive Analytics; Customer Experience; Data Strategy
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Copyright © 2021 Author(s) retain the copyright of this article. This article is published under the terms of the Creative Commons Attribution Liscense 4.0