Amazon

Customer Segmentation for B2B Fulfillment Services

Customer segmentation is the process of dividing the customer base into distinct and internally homogeneous groups in order to develop differentiated marketing strategies according to their characteristics. The customers Amazon focused on in this project were business shippers (e.g., book vendors), who ship bulk orders to businesses (e.g., book retailers). Amazon wanted to develop a systematic approach to find the optimal grouping of the customers and understand where they are in their respective lifecycle stages (e.g., onboarding, settled, mature, attriting). The goal was to use these information to prioritize Amazon's marketing/sales interventions and maximize the total customer lifetime value. This student team worked to create a tool that can take different sets of historical shipper demand data, historical intervention data, and resources cap data as input and generate optimal customer segmentation strategies (including customer size, lifecycle stages, and recommended treatments). This student team worked to produce, from the tool, intuitive visuals that work for marketing/sales teams.