Market Segmentation Solutions
Focus on your most profitable customers
Different customer segments require different marketing strategies and tactics. Market segmentation can impact your message content, advertising, new product development, and customer service tiers. Promoting products targeted towards a particular demographic can lead to success. It can minimize risk for insurance by avoiding bad credit profiles and reduce marketing cost for sales by only contacting those most likely to respond.
There are so many ways you can slice up the market that it can be quite a daunting task to undertake. Should you segment based on individual consumption, such as what products are purchased in groups in retail? Or is using a customer's behavior, based on survey responses, a better angle? Knowing product purchase baskets will let you implement cross sell tactics, but understanding purchase motivation enables more appealing and motivational advertising.
The number of consumer profile variables available to you can quickly grow into the hundreds. There are demographic variables like age, gender, race, education, occupation, income, and marital status. There are geographic variables like state, city, country, zipcode, climate, and population. There are psychological variables like life style, personality, and attitude. There are behavioral variables such as product usage rate, and brand loyalty. There are other historical variables like purchase history, credit, insurance history, and campaign responsiveness. Data mining software, such as PolyAnalyst, can help by selecting the best variables about your market to drive segmentation, as well as aid in the development of modeling customer lifetime value, profitability, purchase propensity, purchase patterns, and attrition.
PolyAnalyst includes a full suite of tools that simplify the customer segmentation process, including:
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