Segmentation Analysis is a statistical modelling solution to help provide insight into the underlying similarities & differences between people.
HOW DOES IT WORK
Segmentation takes a large group of relatively diverse people & splits it into smaller, more similar sub-groups. The analysis can be run on locational, behavioural & attitudinal data to create a geo-demographic style solution, or it can be run on consumer's behaviour within a certain market to create a market specific solution.
How can that help my business
Better understanding of the differences between those customer segments inherent within your customer data can help you target your marketing activity more effectively & can be used to drive customer communication & retention programs.
What makes a successful Segmentation solution
The design stage is vital to achieving a good solution as it is essential to ensure that all dimensions that may have a bearing on the solution are represented effectively in the modelling data. Our experts will be on hand to advise on the design & pre-processing of the data using techniques such as principal component analysis to derive key metrics that can help define the key differences between people.
How will I understand my segmentation solution
Once a segmentation has been created profiles of the individual segments can be built up to help better understand the differences between the behaviour & composition of consumers in the various segments. For example a segmentation could be based on people’s attitudes to technology, but could be profiled based on the demographic differences between the segments.