What is Segmentation?
Segmentation is a way of dividing a population into groups defined by a specific set of characteristics. These characteristics could be as straight forward as customer value, or it could be something more complex as your customers’ needs or values. By grouping your customers into smaller homogenous groups you have greater flexibility to achieve your specific business objectives by treating each segment in the most engaging and relevant way.
Creating the Ultimate Segmentation Toolkit
Segmentation is not the objective; it is the action that allows you to group similar customers together. Having clear business objectives enables you to employ the most relevant segmentation technique that will help you to meet your goals. This may mean having multiple customer segments, each aligned to a specific business objective. In order to understand consumers’ behaviour, transactional data can be used to identify how different customers are using your products and enable you to segment them accordingly. If your objectives are to understand where people live, their age, lifestyle, attitudes and household composition, a geo-demographic segmentation such as Mosaic will assist in achieving this objective.
Experian’s Mosaic segmentation
Mosaic New Zealand divides New Zealand households into 9 Groups and 34 detailed Types. It uses over 500 data variables to create the Groups and Types plus a further 2,400 variables to describe them based on their demographic characteristics, geographic location, lifestyles, behaviour, and attitudes.
Experian’s Mosaic segmentation is unique as it provides a complete view of New Zealand households using Experian’s proprietary household level datasets, household property information, Statistics New Zealand data, plus significant research data to capture not only what people say they do but what they actually do.
There were two key approaches to this Mosaic build; to increase the number of household data variables to increase the discrimination at a household level, and increase the focus on channel preference and the use of technology in the home. This helps to make your marketing strategy more actionable and quantifiable as you try to reach your customers in a fast and ever changing marketplace.
Experian Segmentation solutions
- Mosaic. By appending Mosaic to your customer records you have the ability to identify and describe those households that are more or less likely to be your customer.
- Mosaic Factors. These are a distillation of the key variables that went into the build of Mosaic. They are powerful variables used in advanced analytics such as predictive modelling.
- Mosaic Custom. This is an automated clustering algorithm under pinned by Mosaic that allows you to incorporate you own data with Mosaic data to reclassify the segments into clusters that are unique to your organization.
- Customised Segmentation. Working with our team of analytical professionals we can create a truly customised segmentation solution that specifically meets your business objectives.