Application of micro-segmentation algorithms to the healthcare market: A case study

We draw inspiration from the recent success of loyalty programs and targeted personalized market campaigns of retail companies such as Kroger, Netflix, etc. to understand beneficiary behaviors in the healthcare system. Our posit is that by better understanding and predicting customer behaviors we can emulate the financial success of retail companies in the healthcare market. Towards that goal, we survey current practices in market segmentation research and analyze health insurance claims data using a selected few of those algorithms. We present results and discuss insights based on the analysis.