A comprehensive customer segmentation analysis is a valuable tool for marketers and decision makers.  By grouping customers into manageable segments based on demographic likeness and behavioural similarities, marketing strategies can be adapted to reflect the differing needs of a particular segment.

A segmentation can help identify which segments offer the biggest opportunities, then target those customers who generate the greatest ongoing profit.  It can be based on products, customers, outlets (e.g. fire stations or retail stores) or even an entire market – it’s therefore useful when there is a need to classify people or things.  Datamine can group similar customers or products purchased in combination (e.g. for the purposes of developing marketing strategies and/or driving communications).  Like in customer profiling, we can use client data as well as potential external data (Census, Westpac, market research etc.) in order to populate any shortfalls that may exist.

The first step of this process is determining what the client is looking for – what are they going to do with the segmentation?  How will they use and apply the segments?  This will impact how we create the segmentation from the outset and craft the final outputs.  The best way to facilitate this is through a workshop, where stakeholders from across the client's business can come together and collate their respective goals for the segmentation, offering everyone a chance to voice their opinion on how they want to see the outputs applied.  In the workshop, together we’ll determine what the best type of segmentation is for your specific business challenge.