How do you segment last-mile delivery customers without overcrowding your data?

Question

Working on a project for a mid-size logistics company and the customer base is all over the place. Not sure where to draw the lines without making 20 useless segments.

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Yuki Tanaka · Answer

Start with just 3-4 behavioral variables that actually drive delivery decisions — things like order frequency, delivery window sensitivity, and package size. I'd run a quick k-means cluster analysis (even in Excel or Python) and let the data tell you how many natural groups exist before you force categories. In last-mile specifically, 4-6 segments is usually the sweet spot — beyond that you're optimizing for noise.

How do you segment last-mile delivery customers without overcrowding your data?

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