What is the difference between customer profiles, market segments, and predictive modeling? How are they used in marketing?

What is the difference between customer profiles, market segments, and predictive modeling? How are they used in marketing?

1. Customer Profiles

   • Develop a profile of the ideal customer in any given situation
   • What they wear, drive, live, job, behaviours - when asked to create a profile on a site
   • Best Customer Analysis
   • Electronic targeting - identifying and targeting with individualised content
     • Birthday

2. Market segments

   • Different segments to handle and target
   • Statistical analysis to find the group of best potential customers based on characteristics and product-related behaviours
     • Regression
     • Assist with identifying relationships between variables that affect behaviour
   • Appropriate for the physical world as cost prohibitive
   • Suitable for conversion and retention programs - info on customers already in database
     • Online and offline

3. Predictive modelling

   • Predicting behaviour
     • Using programs to predict likelihoods
       • Can identify results of variable changes - price change, will demand change
   • Data burst - customer account information and products they’re likely to buy appear on the screen

4. They are analytical levels (compress data into summary statistics) used as individual data items to execute marketing programs