Customer analytics

Customer profiling & segmentation

Customer insights that enable you to target groups based on their preferences

What is customer segmentation and profiling?

Segmentation is the process of dividing your customer base into distinct groups based on shared characteristics, behaviours, preferences, or other criteria. The goal of customer segmentation solutions is to better understand customers and personalise marketing, products, and services to meet the unique needs and preferences of each group, leading to improved customer satisfaction and more effective marketing efforts.

Profiling involves creating detailed profiles for each customer segment, which include a comprehensive set of attributes, such as demographics (age, gender, location), psychographics (lifestyle, values, interests), purchase history, browsing behaviour, and interactions with the company. Profiling aims to provide a deeper understanding of each segment’s characteristics and motivations, enabling companies to design strategies that resonate with specific customer groups.

Together they optimise marketing performance, raise ROI and ultimately grow customer value.

customer segmentation and profiling

Build target market segments to communicate more effectively, and win more business

Communicate with your target customers based upon their behaviour, life-stage, demographics and preferences.

Audience clustering, or persona segmentation, is the process of describing your customers and their behaviour, then grouping similar individuals together algorithmically.

Using data from multiple sources including your own, Ikano Insight builds your segmented customer and marketing database, enabling you to campaign more effectively with customers based upon their interests.

Customer and competitor shopping behaviours

Transactional behaviour in-store and online

Lifestage, lifestyle and demographic profiles

Interests, preferences and brand choices

Attitudinal approach and perception

Location and movement behaviour

Customer and competitor shopping behaviours

Transactional behaviour in-store and online

Lifestage, lifestyle and demographic profiles

Interests, preferences and brand choices

Attitudinal approach and perception

Location and movement behaviour

Audience segmentation

A profiling and segmentation success story

 

Retail solutions

World’s largest IKEA registers 180,000 members in 2 weeks

Brand new market store launch profiles customer base to drive footfall

World’s largest IKEA registers 180,000 members in 2 weeks

IKEA needed to gain a deep knowledge of local customers before launch of their largest store ever, in order to target and motivate them to sign up to the Family loyalty scheme and spend.

The Ikano Insight data team conducted a pre-launch survey,mto understand brand awareness, residents’ engagement with loyalty schemes and benefit types, and media consumption habits.

An interactive data visualisation dashboard enabled IKEA teams to continuously track and measure registrations and access real-time insights.

Additionally a loyalty eCard provided the marketing teams with another communication channel, via online app push notifications, as well as creating a more seamless and user-friendly experience for the customer.

Over 180,000 people registered with the IKEA Family programme in the first 2 weeks, with 60,000 being the record number of registrations in a single day.

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Frequently asked questions

Why is customer segmentation important?

Customer segmentation helps businesses understand their customers better and target their marketing efforts more efficiently. It allows for personalised communication, product recommendations, and services, leading to improved customer satisfaction and increased sales.

How is customer segmentation carried out?

Customer segmentation involves data collection, analysis, and categorisation. Businesses can use tools like surveys, CRM data, purchase history, and web analytics to gather relevant information. Analytical techniques such as clustering, regression, and decision trees are then used to identify distinct segments.

What is the benefit of personalised marketing through customer segmentation?

Personalised marketing resonates better with customers, leading to higher engagement rates and conversion rates. By tailoring messages and offerings to specific segments, businesses can address the unique needs and preferences of each group, resulting in improved customer loyalty.

Can customer segments change over time?

Yes, customer segments can change due to shifts in consumer behaviour, market trends, or external factors. Regularly reviewing and updating customer segmentation strategies is essential to ensure they remain relevant and effective.

What challenges can businesses face in customer segmentation?

Challenges include obtaining accurate data, avoiding oversimplification, managing large datasets, ensuring privacy compliance, and accurately predicting customer behaviour based on segment characteristics.

How can businesses measure the success of their customer segmentation efforts?

Success can be measured through metrics such as increased sales conversion rates, higher customer retention rates, improved customer satisfaction scores, and more relevant and engaging marketing content.

Do you need to improve marketing effectiveness?

Customer profiling and segmentation can ensure that your communications are more personalised and better targeted, improving response and purchase behaviour.

If you’d like to know more and discuss your specific requirements, just get in touch here:

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