When you have a wide consumer base it is difficult to determine the optimal way to market to it. One blanket advertisement will never be as effective when you have customers with differing demographics. However, if you are able to properly identify the needs of different customer segments through customer and market segmentation, you can develop more personalized advertisements to the groups you need to cater to the most. By using machine learning, Dunn Solutions' data science team can help you get a better understanding of your customers' preferences and identify who your most valuable customers are.
Even if there appears to be very distinct and obvious segments in your industry, it still may be worthwhile to do a customer segmentation analysis. Dunn Solutions' data science team will use demographic and transaction data to categorize customers without factoring in any additional business knowledge. This will allow the data scientists to conduct an unbiased and unique representation of your buyers. Clustering results can be more difficult to interpret, but they may give insights into new customer segments that were never previously thought of. To capitalize on the results of a customer segmentation analysis, you must understand what your product would provide differently to each of your customer segments. If you can accurately do that, better marketing strategies can be developed to target these newly found clusters.
Results from a customer segmentation analysis can be the most impactful for small to mid-sized companies who do not have the capital to market to all of their different customer segments. These businesses can be successful if they are able to find an under-marketed group and tailor their ads to them. There have been many businesses that have experienced revenue increases of over 50% after uncovering hidden customer and market segments.
Analyzing and interpreting customer segmentation results can be overwhelming and confusing if you are not experienced in the area. Building an analytics team in-house may be out of your budget as well. Dunn Solutions' analytics-as-a-service may be your best option. If you would like to learn more about how Dunn Solutions' data science team can help you conduct a proper segmentation analysis, please do not hesitate to contact us.