Data capture is a cumbersome process, but once done, it requires to be mined and monetized to drive the real benefit. Data drilling is now becoming a highly specialized activity that could have a huge positive impact on your business.
Data is all over the place and is of many kinds. Data from stores, consumer data, third party sales data, loyalty data, social media & online data. Many brands find it a challenge to even consolidate data available from different sources and get it to a form that could potentially be understood and mined.
Data capture, cleaning and consolidation is itself a high cost exercise and, if we are not sure, we will be able to monetize our data, that cost would never see ROI. The whole idea of mining your business / consumer data is to fine tune product mix, store locations, online / offline mix, to be able to drive much higher repeat sales from existing consumers and to interject new consumers at the right time to avoid dormancy.
Its easy to sell face to face, one to one to someone you know. You know their preferences, product affinity and price sensitivity, hence you align your sales pitch accordingly. This process becomes tougher as the number of consumers go into lakh and crores. Its a challenge to mine large amounts of data with tons of parameters, get up close to every single consumer and still achieve the ideal level of personalized experience.
Segmentation is an art. Its ever evolving and highly dynamic, it changes with every consumer action and needs to reorient itself consistently to drive up ROI. The idea of segmentation is to create minute clusters from your data set. The number of clusters is irrelevant, the thought is to create meaningful segments that combine customers with similar attributes. Each cluster has a specific behavior culled out based on parameters such as purchase, frequency, ageing, category / product affinity, spend pattern, season, festival affinity, regional demographics, day of the week, hour of the day and many more.
Each cluster has a certain characteristic and hence we can easily define the objective we need to drive from each specific cluster. Clusters are mutually exclusive and the objective defines the communication to be sent to each data set to invoke the desired action from that set of consumers. Segmentation, if done well, invokes consumers by a highly personalized preference driven communication and this drives up ROI tremendously.
Innovation in usage of channel, time of the campaign and tactical use of right content invokes not only clicks, but directly measurable purchase actions, both online and offline. Consumers love content curated for them and brands can do precisely this by the intelligent use of The art of Segmentation.