Geodemographic Segmentation with PersonicX® New ZealandSwitch to Australia
Offering you a fresh perspective on your customers
The Power of Segmentation
Your customers are individuals. Their differing needs, aspirations and priorities determine how they will behave as consumers, and how they will respond to marketing communications and offers.
Segmentation offers the insight to recognise how your customers differ from one another, and the ability to divide them into like-minded categories for more effective targeting and communication. It also provides a strategic marketing framework from which you can undertake market sizing, assess customer value, identify cross -sell and up-sell opportunities and drive channel marketing planning.
Breaking New Ground
Traditional segmentation solutions have been driven exclusively by demographics that group individuals, households or neighbourhoods according to shared geography. Geodemographic segmentation assumes that consumer behaviour can be predicted by 'who you are and where you live'.
Consumer behaviour is one of the greatest indicators of the propensity to buy. RightAddress has therefore reshaped the traditional approach to segmentation, harnessing its extensive data and analytical capabilities and integrating the knowledge acquired from creating PersonicX solutions across the globe.
With the ability to treat your customers and prospects as individuals you can approach them with the right message and creative offer to maximise long-term relationships.
PersonicX New Zealand offers marketers a new perspective on consumer behaviour. The only solution of its kind, PersonicX New Zealand is driven by a unique combination of RightAddress's comprehensive consumer data source, ConsumerBase, national census data and proprietary technology. It delivers a framework to heighten the effectiveness of strategic planning, direct marketing and customer insight initiatives.
The process by which data variables are selected involves assessing the distinctions, robustness and the relationship that exists to other variables. All variables are then input into a clustering solution, and interchanged depending upon the resulting differentials. The final data set was divided into several groups based on urbanicity, and each group clustered individually.
As a result, PersonicX New Zealand is a 29 cluster solution arranged in 7 groups, providing a fresh view of New Zealand consumers. It segments at a household level to facilitate targeting based behaviour, and allows you to categorise target groups based on lifestage.
PersonicX New Zealand Applications
- Profile your customer base to understand its behavioural, demographic and lifestyle characteristics
- Identify under-performing consumer or market segments that are likely high lifetime value customers
- Track performance of products or critical customer segments consistently, over time
- Recognise and understand customers 'at risk' for churning
- Define more effective customer acquisition programmes by identifying prospects or market segments that look like your most profitable customers
- Target marketing spend more accurately for optimum return on advertising investment
- Analyse campaign performance by profiling responders and buyers
- Expand your business by identifying cross-sell and up-sell opportunities among existing customers
- Explore customer insight by linking to third party data sources
- Available on RightAddress's ConsumerBase New Zealand file for selection
Household vs. Geodemographic Classification
Traditional geodemographic classification systems are developed using Census data as the core source. In New Zealand most of these are developed at Meshblock level, which is the smallest geographic unit for which New Zealand statistical data is collected and processed by Statistics New Zealand (including Census Statistics). Meshblocks encompass, on average, 50 households, though they vary in size from part of a city block to large areas of rural land.
While census data provides a good national view and a good understanding of the 'neighbourhood', it cannot pinpoint differences along a street at a household level, and may therefore produce inaccurate or inappropriate targeting. PersonicX New Zealand offers you insight into the customer behind the door according to lifestage. This enables marketers to communicate with each customer with relevance, or even exclude them from a campaign if appropriate.
The Power of Household-Level Classification
The following New Zealand maps of Ponsonby, Auckland, demonstrates how effective household-level classification is in comparison to geodemographic classification.
|Meshblock Geodemographic Segmentation
||Personicx New Zealand
The map on the left shows Ponsonby by geodemographic classifications only. Each meshblock is separated by the blue lines and allocates all households within that meshblock one geodemographic code.
The map on the right shows Ponsonby segmented by PersonicX Household Classification with the various colours representing 1 of the 29 Personicx Clusters. Here we see a combination of different PersonicX New Zealand clusters within each Meshblock, while geodemographic segmentations would give every household the same code.
PersonicX New Zealand also excludes the non-residential address of Marist School.
PersonicX New Zealand Clusters and Groups
The PersonicX New Zealand clusters and groups are displayed in the following table. These clusters are arranged according to average age; the youngest is A01 and G29 the oldest.
||Studious Sharers and Settlers
||Big Ethnic Families
||Young Renting Families
||Kids & Comfort
||Second Generation Grafters
||Cohabitation Career Couples
||Solid Blue Collars
||Wine & Dine
||Working the Land
||Hard Working Professionals
||Ageing All Sorts
||Nearly Empty Nesters
||Retiring Home Owners
X00 represents households that have not been allocated a cluster code, including recognised non-residential addresses such as commercial addresses, schools, police stations, museums and government buildings. X00 may also include recognised addresses where no information is available, or be within non-residential Meshblocks.
Maximising Your Use of PersonicX New Zealand
- Tailor your message to specific prospect groups based on behaviour, demography and lifestyles
- Target high value customers by overlaying their PersonicX codes on to the ConsumerBase universe to identify like-minded prospects
- Increase your return on investment by building propensity models based on response and conversion
- Improve telemarketing performance by tailoring offers and incentives to specific customer and prospect groups
- Understand more about your immediate business opportunities using PersonicX to calculate market size and your subsequent penetration across your product range
- Create a customised solution by integrating your own data with PersonicX clusters to reclassify them into new, specific groups which reflect your business needs
- Gain greater insight on your competitor's marketplace. PersonicX can be linked to third party data sources and research analysis tools, and by profiling competitive products you can develop more insight and deploy tactics to increase market share
- Enhance cross-sell and up-sell initiatives by identifying key products relevant to specific customer groups
- Understand the key motivations of your existing customers through the PersonicX profiles of your key clusters and develop more relevant propositions, creative and special offers
- Add valuable, household-level information to your customer database though little or no transactional history may be present
- Make reactivation marketing more cost effective by prioritising the potential of lapsed customers to purchase again
- Enhance the performance of your website
by using PersonicX to control the sequence of product information and special offers that are presented on an individual basis
- Maximise sales opportunities from inbound telemarketing and in customer service centres by using PersonicX to identify 'next best offers' for cross-sell and up-sell initiatives