Exploring Data Segmentation Paul Dixon Segmentation and Customer Data Mgr ADMA Data Day 2012

Exploring Data Segmentation Public Exploring Data Segmentation  This is not a “How to…”  More things to think about Where to begin? What data to include? On delivery

Where to begin…?

Exploring Data Segmentation Public …THE END!!!  This is not about answering all questions and locking down a completed strategy. It’s about: Marketing yourself and building credibility Including stakeholders and giving them ownership Giving yourself a clear understanding of where you are heading  What is the status of segmentation within the organisation? Do they have a model? Did they have a model? Why is it not being used?  What model do they want? What type of model? Who is the model for? Threshold definition

Exploring Data Segmentation Public Segmentation Status  It’s about getting a clear understanding of where segmentation is placed in the organisation What has and has not worked so far More importantly – where does the organisation want to head with segmentation

Exploring Data Segmentation Public Type of Model  Value v Behavioural Value – based on transactions (e.g. share of wallet, products value, margin) Behavioural – based on actions (e.g. products purchased) Why is it not being used?

Exploring Data Segmentation Public Who is the model for?  Marketing v Finance Marketing tends to be more indicative Finance tends to be more factual/accurate

Exploring Data Segmentation Public Threshold Definition  Absolute v Proportional Distribution Absolute – thresholds values created to define segments Proportional distribution – base split by defined proportions (e.g. top segment = top 5% of customers)

What data?

Exploring Data Segmentation Public What data to include  What do you need?  What is available now?  What is available later?  If data not available, can we develop a proxy?

Exploring Data Segmentation Public What does it matter? AVOID THE KITCHEN SINK!!!!!

Exploring Data Segmentation Public Model has been developed Model is tested and working Model has been implemented in all relevant systems Description of the model and how it works has been distributed to all of those that might use it JOB DONE…RIGHT? Now what???

Exploring Data Segmentation Public WRONG!!!!

The ending is just the beginning!

Exploring Data Segmentation Public Just the Beginning  Time to sell it back to the organisation Why do you think all those other models failed??  Who specifically? Marketing Product Market Research

Exploring Data Segmentation Public  These are ultimately your end-users – if they don’t use it, the model will soon be forgotten.  How do we get them to use it: Always talk in terms of the model Know when to push it Know when to leave it Why Marketing and Product?

Exploring Data Segmentation Public Market Research  Probably the most important group of all  Beyond just selling  Done correctly, model becomes a breathing organism Combination of model and research becomes greater than the individual Self feeding supplier of insight

Exploring Data Segmentation Public Thank you