Understanding your customers’ wants and needs allows you to develop marketing strategies with impact that help you keep and grow profitable customer relationships. In order to effectively harvest and use the data that’s available, development of a marketing segmentation strategy for your business is necessary.
This strategy organizes your customer base along a number of attributes (or combinations) such as:
- geographic—city, state, climate, urban vs. rural
- demographic—age, gender, income, education, family status, life stage
- psychographic—lifestyle, values, attitudes, personality, interests
- behavioral—purchase, usage, buyer stage, benefits sought
For instance, you could market to mature, well-educated females in large metro areas in a specific state, or to buyers in specific Zip codes who are furnishing a new house. By dividing your customer base into smaller segments, you can develop specific customer experiences that will lead to highly focused marketing campaigns, resulting in higher customer loyalty and retention.
If you think about retailers and credit card issuers, they have access to incredibly rich data such as master file information, application, credit bureau, promotional history files, economic indicators, demographic and psychographic. The real mother-load is the detailed transaction purchase data of where, when and on what consumers are spending their hard-earned money.
Think about your own spending behavior—what could it reveal to a marketer about your life?
Creative Solutions has developed a comprehensive, cost-effective segmentation strategy and communication platform to profitably grow the credit card portfolio of a large Canadian bank. Over a three-year period, the program generated 80% growth in portfolio outstandings and delivered a 25% increase in earnings.
We can develop a comprehensive segmentation strategy for your business too. Call 302.543.8533 or email us today to explore how we can help you!