When looking to support business growth, typically a great place to start for organisations is to understand who has purchased from them before. On the surface that might seem obvious and not too overwhelming. In this article we will take a closer look into how the combination of data and technology, through a tool such as Experian’s Mosaic, can help accelerate a shift towards deeper customer insight.
Understanding who your customers are now
Typically, an organisation looking to develop a growth strategy will begin with a market sizing exercise to determine the pool of potential customers. For example, at a very high level this might begin with the 25 million people that make up Australia.
Taking this a level deeper, organisations will probably perform some basic grouping exercises. Segmentation of customers based on age, sex, or something else will help identify key trends. Taking the age example, if we plot the distribution of age groups, trends will appear about the age of the people purchasing products. Organisations may sell predominantly to under 40s for example, with far less penetration at older age groups.
This seems all well and good. Organisations then pass the key pieces of information to Sales and Marketing and they can start targeting their outreach.
But do we have enough contextual insight to inform a high quality targeting decision yet? Probably not.
If we continue to explore this idea of segmenting customers based on their age, what other data can be used to give our analysis real credibility? Let’s revisit the 25 million people in Australia. If we layer that data over our age groups we will now have some context regarding the proportionate relationship between the two data groups.
Immediately this may flag some interesting insights. The under 40s group that looked so appealing originally may be proportionally underrepresented when held against the national age groupings. Even more interestingly, (and remember this is an example) we can now see that a small group of customers in the 60+ age group are significantly overrepresented versus the national averages.
So let’s look at the relationship between those two groups in more detail by indexing the data. Through this process, we establish that the 60+ group are almost twice as likely to be a customer versus the national average. Suddenly, the 60+ age group becomes very attractive. Something that was not at all evident in the initial age group analysis.
We have provided context to our customer segmentation data analysis.
Understanding who your customers will be next
If we continue with our example where we established the over 60 age group is actually a high value segment. Now we need to analyse the data against a comparison segment.
This is where Mosaic, by Experian, comes in.
Mosaic layers comprehensive information about every household in Australia on top of an organisation’s existing customer data, giving unprecedented insights into who the best customers are, how they think and act, and how to reach them.
Mosaic contains 14 Groups and 51 sub-groups, called Types which segment the Australian population and can be used to further understand which people in high value segments are the most appealing based on their behaviours and lifestyle choices.
Mosaic then takes things a step further, allowing organisations to target the Groups and Types within their high value segments specifically.
Suddenly, we have a very compelling GTM strategy forming. We can see groups of high value customers, we understand their representation and we now know specifically who is most likely to purchase from us in the future. A great result.
For more information about how Experian Mosaic can revolutionise your sales and marketing efforts, please visit our Mosaic Page or complete your details below.