DISCUSSION OF RESULTS

• NUMBER OF CUSTOMER SEGMENTS

• DISPERSION OF CIC ESTIMATES
• FLEXIBILITY
NUMBER OF CUSTOMER SEGMENTS
SECTOR MULTI-DIMENSIONAL CUSTOMER ONE-DIMENSIONAL CUSTOMER
SEGMENTATION SIC SYSTEM (ONE SEGMENTATION SIC SYSTEM
DIGIT LEVEL) (THREE DIGIT LEVEL)
INDUSTRIAL 16 43
COMMERCIAL 9 69

Table 4. Total number of customer segments

INDUSTRIAL COMMERCIAL
43 − 16 69 − 9
%𝑟𝑒𝑑𝑢𝑐𝑡𝑖𝑜𝑛 = × 100 %𝑟𝑒𝑑𝑢𝑐𝑡𝑖𝑜𝑛 = × 100
43 69

%reduction = 62.8% %reduction = 86.96%

The high percentage reduction in the number of customer segments
formed greatly reduce the number of customer surveys that need to be
carried out in order to get the final CIC models.
DISPERSION OF CIC ESTIMATES
Fig. 7 Effect of customer segmentation on Industrial customers
500
450
400
350
Average CV (%)

300
250
200
150
100
50
0
0.0167 1 4 24
Duration (hr)

1-D 2-D 3-D MULTI-D

Flexibility
• One final CIC model is derived from using customer specific
parameters (turnover and energy consumption)
• This would increase the flexibility of customer surveys and a large
number of survey respondents maybe therefore possible to get for
each customer segment formed.