Customer and market segmentation
Understand how each group of customers drives your business. Implement targeted approaches for each segment.
Gather available customer information
- Demographics: age group, gender, education, socio-economic status, area of residence
- Behavioral: Purchase history, preferences, frequency, recency, ads viewed, search history
- Channel: Stationary retail, mobile
- Payment types, etc.
Build clusters
Apply clustering methods to identify segments displaying similar preferences and behavior patterns. It is often useful to also define a reference type for each segment.
Describe customer segments
Describe each segment and reference type:
- Product preferences
- Affinity for innovations or special services
- Price sensitivity
- Affinity for different marketing activities
- Preferred mode of communication, etc.
Targeted marketing plan
Concrete actions based on an understanding which information is available – and can be acted upon – during which type of customer interactions.
- Targeted products
- Targeted pricing and promotional activity
- Preferred media types
- Communication guidelines
- Adequate service levels