Segmentation savvy
Article Abstract:
In part three of a three part series, the question of changing to a more sophisticated and actionable segmentation system is examined. The three steps in the process involve: analyzing the customer database to make sure that key data is being collected; deciding the best way to segment particular customer files, developing models, and checking the accuracy of predictions; and instituting a segmentation production process so that staff members can get the files they need quickly and effortlessly. In-house segmentation is not difficult for companies which already have customer files. The most important aspect is to train staff to apply and analyze the segmentation model. The three factors which are most important to the success of segmentation procedures are: investing in improving the existing database if necessary; experimentation with sophisticatedsegmentation procedures to see if profitability can be increased; and developing the capability to use segmentation cost-effectively by way of computing and analytical methods.
Publication Name: ZIP-Target Marketing
Subject: Business
ISSN: 0739-6953
Year: 1986
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Bulls-eye targeting (Part 2)
Article Abstract:
Regression analysis is becoming a valuable tool in determining whether a customer will respond to a direct-mail piece. Mailings are reduced as the individual application of regression analysis results allow for a more targeted mailing. Customer segmentation is best achieved when the selected model, chosen by the marketing manager, best predicts future mailing response.
Publication Name: ZIP-Target Marketing
Subject: Business
ISSN: 0739-6953
Year: 1986
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Target the individual
Article Abstract:
Market segmentation has become a necessary part of the sales procedure in these times of mass marketing. There are many choices for segmenting and target marketing to specific customers, and there are also tools (usually in the form of computer software) available to assist in these efforts. Four market segmentation procedures are outlined in a table.
Publication Name: ZIP-Target Marketing
Subject: Business
ISSN: 0739-6953
Year: 1986
User Contributions:
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