Analytics Camp 2013 – Making Segmentation Work
The last session I am attending at Analytics Camp 2013 is on Making Segmentation Work with Aaron Terry from BCBS of NC. This is completely out of my domain. Marketing analysis is totally foreign to my world.
Aaron Terry of BCBS of NC Discussing Marketing Segmentation
Different groups within an organization may use segmentation, but other groups may not have a clue what to do with the information.
Below is a copy of his hand-out which is Aaron’s work. My notes are mostly next to his handout text.
1. Ways to leverage an existing segmentation.
-example of market segmenting: family balance, cooking enthusiasts, health nuts, … How many segments are optimal 5-7 due to cost of handling.
-Roll-ups/Sub-segmenting: subseg is separating segments in to sub-segments (ex. healthnuts into sub segments on interest) Roll-ups are the oposite of sub-segmenting, i.e., combining segments into larger groups.
— Short form (for inclusion in future surveys.) This is a short survey of six or seven questions.
– – Database scoring. Use internal data using the same model.
– – Using secondary data (such as Acxiom or Experian) You may be able to map your data to external data from databases and use them in your segmentation.
– Segment profiling (the idea to profile the segment so you can market better to those people)
– – Crossed by other “segmentation” such as customer type, demos, etc.
– – Survey data. Expensive way to get data, but used.
– – Internal data. Databases you have already, but don’t use.
– – Secondary data. You can purchase databases of information
– Estimating changes in segment sizes over time
– Using segment flags as inputs in modeling
– Other ideas?
2) Challenges in implementing segmentation
– Finding segment members
– Other Challenges
3) What other questions do you have about segmentation/ how to make it work better?
Roger: this was interesting to me since I learned a bit about a domain that I was not familiar with. My notes are a bit slim since I was trying to pay more attention to understand the terminology and concepts.