Which mathematical retail innovation, developed in the 1990s, revolutionized customer loyalty programs by using clustering algorithms to identify shopping patterns?

The intersection of mathematics and retail has led to revolutionary changes in how companies analyze customer behavior and optimize sales strategies. One particular mathematical innovation transformed retail analytics and marketing approaches. Test your knowledge about this significant development in retail mathematics that changed how companies understand their customers.

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The Dunnhumby Method, which powered Tesco's Clubcard and identified previously unknown customer segments
The Bass Diffusion Model, which predicted adoption rates of new products in retail environments
The Poisson Distribution System, which optimized cashier staffing based on predicted customer arrivals
The Markov Chain Loyalty Framework, which predicted future purchases based on sequential buying patterns