a method and system for purchased - based segmentation of potential customers employs the use of actual , observed purchases instead of presumptions and correlations to improve the accuracy of segmentation and involves collecting empirical data for a client on actual purchasing behavior of a group of customers and applying statistical modeling techniques to the empirical purchasing behavior data to identify segments or clusters of the customers that exhibit similar purchasing propensity characteristics . thereafter , the segments or clusters are further differentiated from one another according to other factors having a tendency to directly affect actual purchasing behavior of the customers within the segments or clusters , and potential customers are then identified according to a correlation with the segments or clusters for customized marketing .