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."

Similarity 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.

Credit-based 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.

As 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.

VALANTEX 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.

Contact VALANTEX for more information, or to request a proposal