I am currently doing a customer segmentation project in SAS.

I have identified 2700 customers who are have made a purchase in each of the 4 years I am analysing. For the cluster analysis the more purchases/customer each year the better the data quality is. However as I become more selective over number of purchases needed each year per customer, the less customers can be considered in the cluster analysis.

How should I go about choosing the cutoff point for the number of purchases necessary per customer per year to be considered for analysis. I am struggling with this trade off between data quality and having enough customers for analysis.

Thanks a lot! :)

  • $\begingroup$ I wonder if number of purchases might be one of the most important variables for the customer segmentation (at least from a business point of view). $\endgroup$ – gung - Reinstate Monica Jun 25 '16 at 0:04

Why are you trying to limit this?

If you only have 2,700 customers there's nothing preventing you from analyzing all of them. In that case, the number of purchases per year might - as @gung points out - be a rather significant variable


Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Not the answer you're looking for? Browse other questions tagged or ask your own question.