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

Resource summary

1 Customer Profiles

1.1 Develop a profile of the ideal customer in any given situation

1.2 What they wear, drive, live, job, behaviours - when asked to create a profile on a site

1.3 Best Customer Analysis

1.4 Electronic targeting - identifying and targeting with individualised content

1.4.1 Birthday

2 Market segments

2.1 Different segments to handle and target

2.2 Statistical analysis to find the group of best potential customers based on characteristics and product-related behaviours

2.2.1 Regression

2.2.2 Assist with identifying relationships between variables that affect behaviour

2.3 Appropriate for the physical world as cost prohibitive

2.4 Suitable for conversion and retention programs - info on customers already in database

2.4.1 Online and offline

3 Predictive modelling

3.1 Predicting behaviour

3.1.1 Using programs to predict likelihoods

3.1.1.1 Can identify results of variable changes - price change, will demand change

3.2 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

Resource summary

	Created by Michael Bayly over 5 years ago