Segmentation and Context

What are segmentation and context and why do they matter to your business? 

Aggregated data gives you the overall trend of the data, so for example are your sales going up or down or are they flat. Segregation of the data tells you what are the factors driving your sales, and context tells you how you are doing in relation to the rest of the people in your same type of business and how you are doing now vs how you were doing.

Aggregated data is what you use to help understand overall user trends, it's all the data lumped together like all your sales for the month and you plot that every month.Segmentation is breaking apart of aggregated data. A Segmentation is when you break it apart to understand how an individual factor effects the data. Segmentation is about why your data changes with time. We already discussed how to determine how factor can interact with each other. So what sort of segmentation is common?

  • Marketing channels
  • Day of the Week
  • Time of Day
  • Device
  • Geography
  • Customer characteristics


Context is important, and needs to be both external and internal

  • External
    • comparing to industry benchmarks this will tell you how you are doing compared to your competition. 
    • it is also about external factors that drive your sales, say for example you sell t-shirts and you see a huge rise in sales of one particular style starting May 3rd and you have no idea what happened. When you check your Facebook account you discover that a famous movie star was photographed wearing your t-shirt. 
  • Internal
    • this is comparing how you are doing today with how you were doing in the past and usually takes into consideration Year To Date, and Month To Date if there is other relevant time frames, specific to your business, they can be calculated also.


Talk to us about what makes sense for you and your business in terms of what data to look at, how to look at it and in what context you need to study it.


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Last modification: Wed 26 Aug 2015

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