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:

• Seamless connectivity to Microsoft Access, Microsoft Excel, Microsoft SQL Server, Oracle, IBM DB2, MySQL, and any ODBC compliant database
• A graphical and appealing interface where you setup analysis using an flowchart. Your progress is documented for you as you work, and you can review any step in the process with a single click
• Flexible reporting tools like cross-tabs, OLAP, exporting to Microsoft Excel and Word. Reports are interactive and enable colleagues to drill down directly to the original data
• All the standard charts (e.g. bar/pie/line) plus more advanced visualization tools like link analysis, a statistical correlation tool that provides an interactive graph of associated values
• Powerful, automated classification algorithms such as CHAID, decision trees, neural networks, case-based reasoning, bayesian networks, and more.
• Predictive algorithms such as linear regression as well as our own advanced Find Laws algorithm
• The ability to schedule the entire project to run at a specified time automatically. Group new customers as they arrive and appear as new records in your database.

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