Segmentation

Kaleidoscope

Kaleidoscope

Kaleidoscope is Lightstone Explore’s new geodemographic segmentation tool. We have used our many proprietary datasets (demographics, property, auto, retail, business) to categorise the population into 19 relevant segments, and used the datasets to describe each segment. At a very granular geographic level (Enumerator Area; over 100,000 in the country) we have identified the predominant type of person living in each area, along with their characteristics. This product is available within our geospatial platform LEO, or via other delivery mechanisms (eg database) depending on clients’ needs. It will help you to:

  • Profile your customers & understand them better
  • Understand the type of people living in the vicinity of your stores
  • Identify where people of the right target type live, in order to target your marketing efforts.
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Town segmentation & characterisation

Town Segmentation & Characterisation

In addition to characterising people by the areas in which they live, we have also characterised towns in various ways that can help you understand the nature of opportunity in that town. Elements feeding into the characterisation include various aspects relating to the property landscape, the business landscape, the retail landscape, the cars within the town, the contribution to GDP by industry, and the demographics of the town. Some elements of change or growth are included to identify places likely to be growing or those that may be stagnating.

 Customer segmentation

Customer segmentation

We have extensive experience in building customer segmentation models for various purposes. These models are sometimes built to size the market, to guide merchandising decisions, and to contribute to decisions about store location. Pure internal customer segmentation, though, must result in a rich understanding of your customer base, in a way that allows you to create and execute on your customer strategies. The results are used to identify potential new customers; more specifically advertise / appeal to specific segments within your base; build targeted pricing models; etc.

The following tenets are key to our approach:

  • We create groups which have enough in common within the group, and enough differences between the groups, to be actionable with different strategies for each group. That is, the commonality within a group should be strong enough to allow a strategy to be targeted at the group, and the difference between the groups should be substantial enough to mean one strategy can’t be applied to the different groups.
  • One should allow for customers, over time, to move from one segment to another (as their age/income/life-stage changes), ideally to get a handle on which customers will move to more valuable and which customers to less valuable segments. However, the system must be stable enough that there is not high flux between segments from one month to the next – it should be real fundamental changes over time that shift a customer into a new segment, not normal month to month variation.
  • Although behavioural segmentation is based on the behaviour of the customer, one should always look for the underlying factors which makes a person more likely to fall in a specific segment, so that other customers ‘looking like this’ can be targeted for action to move them to the more valuable segments, and non-customers targeted correctly with the proposition geared at the segment they are most likely to fall into. For example, if the SPEND OFTEN BUT WITH MONEY SCRAPED TOGETHER segment is mainly made up of young females in lower income metro areas, we know not to target them with the same proposition as what we will target the SPEND ONCE A SEASON segment which is mainly made up of middle age men from affluent areas.