Big Data MY PROGRESS-29% Decision Point: Which Segment to Target Although annual

Question

Big Data MY PROGRESS-29% Decision Point: Which Segment to Target Although annual spending on camping gear and apparel ranges from $300 to $2000, industry data suggests that the average "high-end" camper spends $850 per year on the latest camping gear. Using Camp Plus's transaction data, you calculate total annual spending for each of its 10,000 customers and then apply industry spending to calculate each customer's share of customer (SOC). Using statistical analysis, you group the customers into five distinct segments, as follows: Segment 1 : SOC-1.15% (2000 customers) Segment 2: SOC = 16-45% (3000 customers) Segment 3: SOC-46-6596 (2500 customers) Segment 4: SOC-66-90% (1500 customers) Segment 5: SOC-9196+ (1000 customers) Your plan is to implement a campaign to increase the customers' Camp Plus purchases. Focusing on share of customer and segment size, which of the five segments will you target first? Select an option from the choices below and click Submit. Seament 1: S

Explanation / Answer

Hi,
Since we want to increase the purchases of customers, we have to look for segement of customers who are spending the least when compared to industry spending, i.e segment 1 , 1-15% with 2000 customers, hence we need to target this segment first
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