Monday, May 6, 2013

Socio & Geo-demographic Segmentation

What we know today as a census began in Egypt over 5,300 years ago, where it was used by the rulers for tax gathering and to determine a person's fitness for the military. 

In Australia, the national census started in 1911 some ten years after our country was united as a Commonwealth. The orginal aim of our country's first census was to provide a snapshot of Australia's people and their housing in the various states. Fast forward a century and now gathering information about the population extends signicantly past the government making decisions in relation to the determination of local services and facilities across the country. The power of computing combined with big data and GIS modelling software provides both the public and private sectors with vast amounts of information that is used to predict our behaviour.

Socio & Geo-demographic Segmentation - better targeted marketing, segmentation & ABS mesh block mapping

What gets interesting for marketers is when ABS census maps are linked to databases. Companies like Pitney Bowes Software have software called Map Info that is designed to visualise the relationships between data and geography, it facilitates customer data mining and modeling to enable customer insight, better targeting and prediction of future customer behaviour.

When a large supermarket chain such as Woolworths or Coles analyses their point-of-sale (POS) data with other geo demographic data they are able to determine a local area's sales trends, develop regional specific marketing campaigns and accurately predict customer loyalty within a determined socio economic segment. Everytime we use a supermarket rewards card or pay with our credit card the data collected provides a detailed profile about our purchasing behaviour.

In simple terms you can imagine locations are assigned a demographic segment using only their address and age are then mashed with a psychographic profile which differentiates a suburbs consumer types from each other by profiling their underlying psychological needs which is driven by their personal values, attitudes, interests and lifestyles.

Each suburban street in Australia is given a different classification depending on the consumer characteristics within that area. This data then gives marketers the business intelligence to develop peronalised customer acquistion and retention strategies, cross-selling opportunities and upsell campaigns by developing a deep insight into existing customers and identifying the location and target similar potential customers.


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