Segmentation made simple
data pulse #37
Delivering the most relevant, inspirational messaging and experiences through advanced segmentation and targeting is a key advanced use of data. Segmentation itself is relatively straight forward, we all do it all the time. The skill for CMO lies in bridging the technical teams and the business imperatives to develop segmentation that delivers on commercial objectives
Netflix is an organisation that uses data in three of the advanced states. Netflix micro-tagging of vast content archives allowed creation of nearly 77,000 film segments, rich data, views, searches , times, pauses and more is used to build behavioural profiles and predictive algorithms give uniquely targeted recommendations.
The segmentation techniques are not dissimilar to the segmentations that I’ve used at Tesco, Sainsbury’s and Asda . Both cluster users based on attributing product features to films / products and then clustering film watched/ products bought using analytics.
The difference is the Volume, Velocity and Veracity of data used.
Coop Food apply 7 segments to members annually,
Netflix create 77,000 segments on daily basis, continually refining which segment members are in so better able to predict your best next film.
More complex isn’t always better, as organisations need to WALK before they can RUN, and align people and processes before they build more complexity. Coop is now using customer segmentations and tools and processes for building ranges and promotional plans, and continually building and refining.
Customer focus, data-driven to deliver commercial imperatives.
Building more sophisticated segmentations will develop but add value if they are aligned to deliver commercial objectives, so creating strategic and operational capabilities