What is Segmentation?
Segmentation is a way of dividing a population into groups defined by a specific set of characteristics. These characteristics could be as straight forward as customer value, or it could be something more complex as your customers’ needs or values. By grouping your customers into smaller homogenous groups you have greater flexibility to achieve your specific business objectives by treating each segment in the most engaging and relevant way.
Creating the Ultimate Segmentation Toolkit
Segmentation is not the objective; it is the action that allows you to group similar customers together. Having clear business objectives enables you to employ the most relevant segmentation technique that will help you to meet your goals. This may mean having multiple customer segments, each aligned to a specific business objective. In order to understand consumers’ behaviour, transactional data can be used to identify how different customers are using your products and enable you to segment them accordingly. If your objectives are to understand where people live, their age, lifestyle, attitudes and household composition, a consumer lifestyle segmentation such as Mosaic will assist in achieving this objective.
Experian’s Mosaic segmentation
Mosaic Australia divides Australian households into 14 Groups and 51 detailed Types. It uses 1,000+ data variables to create the Groups and Types plus a further 1,700 variables to describe them based on their demographic characteristics, geographic location, lifestyles, behaviour, and attitudes.
Experian’s Mosaic segmentation is unique as it provides a complete view of Australian households using Experian’s proprietary household level datasets, household property information, ABS data, plus significant research and behavioural data to capture not only what people say they do but what they actually do.
There were two key approaches to this Mosaic build; to increase the number of household data variables and increase the discrimination at a household level. The second, to increase the focus on consumer behaviour, incorporating transactional data to further segment the population based on their actual consumption. This acts to optimise your marketing strategy as you try to reach your customers in an increasingly fragmented and evolving marketplace.
Experian Segmentation solutions
- Mosaic: By appending Mosaic to your customer records you have the ability to identify and describe those households that are more or less likely to be your customer.
- Mosaic Factors: These are a distillation of the key variables that went into the build of Mosaic. They are powerful variables used in advanced analytics such as predictive modelling.
- Mosaic Custom: This is an additional clustering algorithm underpinned by Mosaic that allows you to incorporate your own data with Mosaic data to regroup the segments into clusters that are best suited to your use-cases.
- Mosaic Global: Mosaic is available in 28 countries, covering 3.2 billion consumers. While each country has its own localised version of Mosaic, Mosaic Global allows for consistent targeting of the same Group or Type across all countries.
- Mosaic Segments: Mosaic Segments are Mosaic Types broken down into further segments based on key characteristics. Mosaic Segments allow further granularity when segmenting your audience.
- Workplace Mosaic: Workplace Mosaic extends the Mosaic segmentation system to the working population, helping businesses understand the market potential of business districts and city locations during working hours.
