USING TRADITIONAL & DATABASE SEGMENTATION TO INFORM PERSONALIZATION STRATEGIES

1. USING TRADITIONAL &
DATABASE SEGMENTATION TO
INFORM PERSONALIZATION
STRATEGIES
Eric Paquette, Vice President

2. 01 Brief Intro
02 First Party Data & Behavioral Segmentation
03 Enhancements
04 Some Examples
05 Questions
Today.

3. Eric Paquette
Vice President
3

4. We craft meaningful
experiences for a
better tomorrow.
4
WE ARE A GLOBAL, EXPERIENCE-LED
TRANSFORMATION COMPANY.

5. 5
Experiences built
on a foundation of
craft, creativity and
technical innovation
make lives better.
OUR CORE TRUTH

6. Human(full).
PEOPLE’S TRUE NEEDS ARE THE NUCLEI THAT BIND GREAT DIGITAL EXPERIENCES
AND GUIDE OUR APPROACH ACROSS EVERY DISCIPLINE.

7. 7
Segmentation
& Targeting
Marketing Intelligence
Brand &
Positioning
Journey
Mapping
Communications
Evaluations
Product &
Pricing Strategy
White Space
Exploration

8. Integrated Data Model
8
Understand
Conduct market research and define segments,
personas and journeys to understand the core
use cases that can be applied to target, engage,
convert and service the core audiences.
Organize
Identify and organize the data from 1st, 2nd, and
3rd party sources that maps the use cases and
enhances segmentation. Set up a centralized
data management platform to facilitate activation
of high-value use cases.
Activate
Activate core use cases and segments across
high-value channels (paid and owned). Phased
approach to activation is recommended in terms
of data as well as channels.
Optimize
Deploy capabilities and resources to continuously
implement new segments and experiences.
Cross-disciplinary team with representation from
all departments but clear ownership and metrics.
1st Party (CRM, Site
Analytics, POS, Loyalty)
2nd Party (Partners,
Exchanges)
3rd Party (Experian,
payment processor)
Data Mgmnt Platform
Search
Display
Email
.COM
Iterate
Analyze
Develop Design
Plan
Identify

9. 9
The information that you collect directly from your
customers or audience
/ Website, mobile and app data
/ POS or other transaction data (online or offline)
/ Coupon / promotion data
/ In person event data
/ Loyalty data
/ Email data
/ Call center or chat data
/ Demographics or other data that they have shared
/ Etc.
First Party Data

10. First Party Data
Advantages
10
/ Real
/ Highly relevant
/ Proprietary
/ (Relatively) inexpensive
/ Builds a virtuous cycle
/ Privacy

11. 11
Database
Segmentation
Usually, an overarching structure for
organizing the audience to help guide
strategy and tactics.
/ RFM or other value measure
/ Tenure / lifecycle
/ Responsiveness
/ Behavioral
/ Etc.

12. 12
ILLUSTRATION
Heavies $$$$$
Penny Pinchers $
Premium Products $$$$
Service First $$$
Tire Health $$
Regular Maintenance $$$
Sporadic Services $
Tires Only $$$
# Customers Revenue

13. Prioritize
Understanding the value of different
audiences.
/ RFM analysis
/ Primary, secondary, tertiary customers
/ Profitable vs. unprofitable
/ Etc.
Can be extended to find lookalikes for
acquisition
13

14. 14
Personalize
Tailor specific offers, content, products /
services to different groups of customers.
/ Past purchase / browsing
/ New vs. return site visitors
/ Search strategies
/ Geo-location (incl. weather)
/ Promotion
/ Stylefinder or other preference choices

15. Optimize
/ What works
/ What doesn’t
/ With whom
/ When and where
15

16. 16
Strategize
Better understand objectives for and
pathways to growth.
/ Purchase funnel
/ Managing more profitably
/ Expanding across the portfolio
/ Driving frequency or retention
/ Behaviors to inspire / incentivize

17. 17
Limited by an
incomplete view.
/ How do we perform….relative to competition?
/ What is our real opportunity?
/ What do they buy through other channels?
/ Who is our competition?
/ Is the customer the user?

18. Not Human(full).
LACKS IMPORTANT UNDERSTANDING OF WHY

19. A more complete
understanding
combining first party
data with a better
understanding of
who and why.
19

20. 20
Used to enrich our understanding of the database
segments.
/ Including basic questions (e.g. do you buy or use)?
/ Better understanding performance and the
opportunity (e.g. SOW, categories shopped, etc.)
/ Identifying the key competitors
/ Exploring the “why’s” specific to the category (e.g
attitudes, needs, journey, non-brand behaviors,
psychographics, etc.)
A Simple
Survey

21. Infuse
Emotion

22. THOUGHTS
“This makes sense”
“I think I’ll try it”
FEELINGS
“This feels exciting”
“I want to try it”
Emotions are
critical to
effective
marketing.
Every decision is based on rational and
emotional drivers.The most successful
products in the marketplace have rational
and emotional appeal.
22

23. Barriers to
emotional
insight.
These data used to be hard to get in a
survey, never mind in a database.
Asking consumers to talk about their
emotions just won’t get the job done. Two
major barriers to insight create a need to
“get deeper” than respondent self reports.
CAN’T SAY
Respondents are unable to
articulate or don’t know how
they feel
WON’T SAY
Respondents are unwilling to talk
about their feelings
23

24. 24
A framework for understanding the
underlying emotional drivers of decision
making.
/ Category motivations
/ Brand connections
/ Response to experiences
1 See D Forbes, “Toward a Unified Model of Human Motivation, Review
of General Psychology” June 2011.
MindSight®
Motivational
Model

25. Results
occasionally
disappointing.
Purely behaviorally-based segments are
often not all that different in terms of the
why.
25

26. Approach to Market Segmentation
26
18%
4%
20%
9%
22%
22%
20%
23%
20%
42%
% of Shoppers % Category Spending
Different Attitudes
Different Rational Needs
Different Emotional Motivations
Different Category Behaviors
Different Psychographics
Different Demographics
Multidimensional with Lots of “Why” Profit Directed

27. Typically Broad
Sample Frame.
SAMPLING
Sampling the broad category universe
allows us to have a better perspective on
our performance and growth opportunities.
27

28. THOUGHTS
“This makes sense”
“I think I’ll try it”
FEELINGS
“This feels exciting”
“I want to try it”
Highly
Connected.
/ First party data
/ Any behavioral structures or cohorts
/ 3rd Party Marketing Data
/ Traditional media planning data sources
28

29. Analytically
a decision
to make
Develop the market segmentation
leveraging only the database, or the entire
sample for the market. There are
advantages and disadvantages of each.
29

30. 30
Reliant Convenience
Driven
Best
Value
Researchers Bargain
Hunters
Heavies -
Penny Pinchers - -
Premium Products - -
Service First -
Tire Health -
Regular Maintenance - -
Sporadic Services -
Tires Only
Non-Customer -
/ What are the objectives for each opportuity space?
/ Who is the competition?
/ What is our right to win?
/ What would we say / do to attract each?
/ Specifically, how do we personalize to address
specific individual cells of opportunity?
Enhanced
Prioritization &
Personalization

31. 31
Better understanding the who, what and why
opens up a framework to understand how.
Platform for
Ideas

32. 32
Promotions
OTHER EXAMPLES
/ In multiple categories we find a behavioral
segment of heavy promotion / coupon
redeemers
/ Often three different reasons for behavior
/ Each for very different implications for
how you would address

33. Professional
Sports.
OTHER EXAMPLES
/ Lots of behavior data
/ Emotion provided tremendous insight and
opportunity
33

34. 34
/ Ordering healthy items from the menu
/ With very different definitions of what “healthy”
means
The Meaning
of Health.
OTHER EXAMPLES

35. Key
Considerations
/ What is the mission of the traditional market segmentation?
/ How important is the connection to the database?
/ One behavioral framework or many?
35

36. Questions?

37. THANK
YOU!
eric.paquette@isobar.com
isobarmarketingintelligence.com