From the course: Marketing: Customer Segmentation

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Segmenting customers by usage rates

Segmenting customers by usage rates

From the course: Marketing: Customer Segmentation

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Segmenting customers by usage rates

- [Narrator] When was the last time you were on an airplane? Did you notice there's a group of people who were able to board the plane before you? And they had all the good window and aisle seats too. Or maybe you're a traveler who gets the benefits of being recognized as a frequent flyer. Frequent flyer programs are one of the best examples of segmenting customers by usage. There's a segment of extremely heavy travelers who fly the equivalent of going around the world five times or more each year. What else can you infer about heavy users of airline travel? The airlines have learned the business traveler who hits the road a couple of times per month, that's their most profitable customer. When you think about it in this context, it makes a lot of sense why the travel industry has developed reward programs for frequent travelers. This is similar to segmenting by behavior, but there are some subtle differences. While…

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