1. A method for providing product recommendations to customers in an e-commerce environment, comprising the steps of: (a) deriving product characterizations for each of said plurality of products; (b) creating individual customer characterizations on each of said customers based on usage of said product characterizations by each of said respective customers; (c) clustering based on similarities in said customer characterizations, to form peer groups; (d) categorizing individual customers into one of said peer groups; and (e) making product recommendations to customers based on said customer characterizations and information from said categorized peer groups.