When someone new is added to my customer base, how much transactional information will be needed before they can be segmented into a specific cluster?
It depends on what one wants to do with the models. This is usually determined through the assessment phase of the product installation. If the models are going to be used to make highly pointed and narrow predictions, then more data is needed than if they are used to gauge broader responses. Eventually, both approaches yield great success, but need to be used where and when it makes the most sense for the client. Also, since the transaction information is not aggregated (or collected) but merely updated, these customer models have almost no upper limit on the depth of prediction for which they might be needed.
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