Application of Marketing Analytics in Customer Segmentation by Nigerian Commercial Banks: A Professional Study

This study examines the professional application of marketing analytics tools in customer segmentation by Nigerian commercial banks, focusing on banks operating in Lagos State, South West Nigeria. Customer segmentation, the division of a customer base into groups with shared characteristics, is a foundational marketing management function that determines the relevance and effectiveness of product offers, pricing, and communication strategies. Advanced marketing analytics including cluster analysis, predictive modelling, and customer lifetime value calculations are transforming segmentation practice globally. The research employs a descriptive survey design with 130 data analytics and marketing strategy managers from ten commercial banks participating through structured questionnaires and semi-structured interviews. Quantitative data are analysed using descriptive statistics and factor analysis, while qualitative interview data are coded thematically. The study evaluates the sophistication of segmentation analytics tools currently in use, their integration with campaign planning, and the quality of segmentation outcomes reported by managers. Preliminary findings indicate that most Nigerian commercial banks have adopted basic transactional segmentation but few have progressed to predictive behavioural segmentation or customer lifetime value-based targeting. Recommendations address bank marketing directors, data science teams, and financial technology partners on accelerating analytics capability development to support more precise and profitable customer segmentation. Keywords: marketing analytics, customer segmentation, commercial banks, Lagos, data-driven marketing