Knowledge of customer segments, their behaviour and value, is the cornerstone of any business strategy. The Logic Group’s data analysts and consultants have extensive experience with data mining, business intelligence and customer insight, enabling them to provide clients with a broader picture of their customer base that allows them to make smarter business decisions. Insight services in this area include:
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Demographic Profiling – existing customers can be segmented by such factors as age, gender, geographic location and lifestyle coding (e.g. Acorn, Mosaic or Prizm). Demographic profiling, often in conjunction with behaviour segmentation, enables organisations to understand their current markets, as well as identifying gaps and opportunities. |
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Behavioural Segmentation – provides a tangible measurement of the customer lifecycle and brand loyalty, enabling organisations to undertake strategic customer relationship marketing and tactical campaigns. It typically includes analysis of activity status, lifetime value, duration, recency, frequency, regularity, spend and margin. |
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Lifetime Value Modelling – lifetime value is the projection of a typical customer contribution during the whole product or brand lifecycle. Knowing customer lifetime value is vital to many businesses but traditionally very difficult to determine due to the uncertainty involved. For example, different customers have totally different values, churn rates and communication costs. Our lifetime value modelling uses a segment based approach that can overcome the uncertainty and provide a more accurate, robust and meaningful set of predictions. |
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Churn Modelling – identifying the characteristics of previously churned customers and developing predictions on which are more likely to churn and when they are likely to do so. The churn model is able to spot the early sign of churn and raise alarms so that actions can be proactively designed and taken to prevent it from happening. |
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Propensity Modelling – profiling common characteristics of customers who purchase specific products in order to predict the purchase likelihood among other customers. Propensity models enable organisations to identify the most likely prospects for cross-selling and up-selling, maximise campaign response and improve return on investment. |
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Basket Analysis - determining which items are likely to be purchased together. Basket analysis is widely used in on-line business and retail environments for real-time point of sale recommendations, cross-selling & up-selling and provides a vital tool for supporting decision making on merchandising, shelving and product placement. |
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Brand Profiling – combines brand image, market position, current customer segments (particularly combining lifestyle and behavioural patterns), as well as competitor information and market trends, to review current market share, identify gaps, potentials and new opportunities to support future growth strategy. |
Utilising these techniques, together with our experience of consumer behaviour in different industries, The Logic Group insight service delivers true value to our clients. |
