Analytical Engine

In earlier posts, we discussed the goals of an ideal segmentation scheme and issues with most segmentation initiatives. Based on our experience at more than half a dozen clients, we have developed a five-step “Rapid Segmentation Methodology” process to create a comprehensive customer segmentation platform and have applied it to solve both strategic and tactical marketing decisions across the various groups within a marketing organization. To summarize the five steps:

1. Select standard schema
   Customize an array of rich data from an off-the-shelf schema that is pre-segmented into groups of the U.S. population.(e.g. Claritas’ segmentation products)
2. Prioritize segments
   Use business goals to filter criteria to create a shortlist of high potential targets.
3. Survey target segments
   Ask detailed questions of potential customers to pinpoint which specific products will resonate.
4. Dive deeper into the data
   Develop datasets to further parse the preferences of potential customers and predict customer profitability.
5. Disseminate data to different departments
   Distribute valuable insights about customer segments to various groups across the sales department-product development, marketing, communications, distribution and after-sale services.

The methodology is useful for guiding marketing decisions ranging from new product development and pricing to ad campaign development and media buying. More details about the approach and a few client examples are available in the recent Diamond white paper, which you can download here.