Review on the Use of Data Analysis for Customer Segmentation and Personalization in Marketing

Marketing is a part of business that requires considering countless variables and making accurate decisions. With the development of computer science and algorithms, the advancement of data analysis methods can be applied in this field to bring great convenience. Despite a large number of data analysis models being constructed, there is a lack of review articles that need to summarize algorithms created by previous generations.This paper starts with a lookback to the basic descriptive and predictive data analysis methods following with the introduction and further explanation of customer segmentation and personalization. Combined with the basic marketing methods, we studied the application of data analytics to business industry. Moreover, this paper presents case study that highlight the application of data analysis in different areas: online retail, e-commerce and transportation. Finally we use each case to find utilization of data analytics to derive meaningful insights and facilitation decision-making.