Traditionally, customer databases have been analyzed with the intent to
define customer segments. A variety of muUivariate statistical methods such as
cluster and discriminant analysis have been used to group together customers
with similar behavioral paiterns and descriptive data which are then used to
develop different product offerings or direct marketing campaigns.** Direa marketers
have used such techniques for many years. Their goals are to target the
most profitable prospects for catalogue mailings and to tailor the catalogues to
different groups.