Segmentation systems are generally intended to
organize customers or prospects into groups such that members of a
given group or segment are "similar" and members in
different segments are not "similar."
in the above description can be based on many different
factors. The intended use of the system often drives the
specific factors used in defining segments. Marketers make
significant use of segmentation systems based on demographic data -
such as age, income, and marital status.
segmentation systems can be developed using credit bureau data, or
internal usage and payment information. In collections,
accounts can be segmented based on the length of time since last
contact. For customer service, accounts can be segmented based
on length of time as customer and size of balance.
contrasted with predictive models,
segmentation systems are typically not designed to predict some
outcome. The objective of segmentation systems is most often
to organize a population in groups so that marketing or other
treatments can be conducted in a manner more efficient than simply
applying one treatment to the entire population.
can help you in gathering and organizing the data, and in
determining the best factors to use in system design. From
there we will build the system for you, or assist your employees in
the building process.
VALANTEX for more information, or to request a proposal