Database Segmentation | Xigent Research Solutions

By: Xigent Research Solutions  09-12-2011

Database Segmentation | Xigent Research Solutions

Marketing without understanding the desires, motivations, and trigger points of your potential customers is akin to wishful thinking — it is simply hoping that your advertisements and communications will entice them, without actually knowing whether they will. This “numbers game” is becoming increasingly more expensive and risky, as marketing costs rise and your consumers contend with an ever-growing barrage of advertising directed toward them.

The game is also unnecessary. If you could predict, with a measurable degree of accuracy, which customers would respond most favourably to your marketing, and to which type of messaging, your company would surely use this information to its advantage. The power of customer database segmentation allows for this — it facilitates the discovery of the diverse segments that exist within your customer base — their characteristics, behaviours, responsiveness, willingness to purchase your products. These are not groups that we create; these groups already exist. The sole purpose of database segmentation is to draw them out, to define them, to discover their size and position. Each of your customers will then be identifiable within a single definable group, each with varying degrees of value with respect to future purchase behaviour. Once complete, a customer segmentation is a tool to be used on an ongoing basis, across various marketing efforts. It can be updated as new customers enter your database, but it does not expire, with respect to your existing customer base.

Your marketing and communications strategy should never be “one size fits all”. Xigent typically recommends reducing communications with certain customer segments either altogether or to very infrequent intervals (e.g., annually, just enough to keep your brand in their consciousness). Other customer segments will respond remarkably well to frequent communications, special offers, etc. — this is where your marketing dollars should be spent, and where the highest ROI is always realized. Xigent’s role is to identify and describe these groups. Our

can be integrated with our segmentation work, for greatest value and a highly tailored communications strategy. A segmentation solution, however, can also stand on its own, for your organization to use as desired — once complete, the information is yours, and still puts you light years ahead of any competitor using an undifferentiated (“blanket”) marketing strategy.

Implementing a segmentation requires a bit of “science” and a bit of “art”; one or the other will not do. You will find that there is no such thing as a fully automated segmentation tool, or software. The involvement of an educated team to administer the segmentation (the “science”) and an understanding of consumer behaviour within your industry (the “art”) is critical to a successful segmentation. Xigent’s approach is statistically rigourous and always integrates industry-specific data. Your organization’s segmentation will be unique and applicable only to your customer base. Further, strict confidentiality agreements govern access to and usage of your customer data; information security and confidentiality are critical to our continued success, so we treat these concepts very seriously.

today to discuss the segmentation opportunities for your business. Begin to market personally, not broadly.


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