Using P² People & Places
Profiling your customers
Profiling your customers with P² People & Places
UK consumers are overloaded with information from a range of sources making it difficult to connect with them. The key to making your message stand out is relevancy which is why you need to understand exactly who your target market is and what they want.
Businesses use geodemographic classifications to understand who their customers are and learn about what is important to them. It provides the insight required to communicate with the right types of people with the right type of message at the right time.
Profiling your customers will enable you to:
- Use profiles to find new customers that match
- Tailor the style and message in communications
- Use the most appropriate media
- Drive brand recognition and loyalty
- Identify ideal locations for outlets and service centres
- Treat all your customers as individuals.
Here’s an example of how you can profile your customers with P² People & Places Tree and Branch classifications using a Geographical Information System (GIS) such as Prospex. The following table shows a snippet of coded locations.
Each postcode from your data is located and coded with a Tree or Branch type. In this case nearly 10 thousand records (Sample) are compared to national averages to generate a customer database profile.
The profile shows two things.
- The 'Sample' count shows what kinds of people your data represents. The profile shows that most customers (Households) come from Trees C, J, K and N. You can also see that you are not reaching Tree types A, G or F.
- The 'Index' shows how your customer profile differs from the average. While J Tree type customers are the most common you are reaching below average numbers of them. N Tree type customers account for a big proportion of your clients and you reach more than 3 times the average.
This profile has been created by comparing customer data against a national catchment. Analysis can also be done using smaller areas. If you analyse your customer data against the total numbers for your town or within an hour's drive of your store, you can create a more localised profile of your customers and an estimate of your total potential market. This also means that you can work out where your market penetration can be improved.
Locating new customers using P² People & Places customer profiles
A P² profile will help you identify where new customers are likely to be found. The profile above indicates that Trees C, J, K and N make up about half of your customers. Using a GIS and P² People & Places demographic data will show you areas with higher numbers of these types of people.
Both maps show the areas that have a higher than average proportion of Tree type C, J, K and N households based on the profile. Green areas have a higher than average proportion, red areas a lower than average.
The National Map illustrates that
- Scotland and Northern Ireland would be poor areas to target
- The target market is well represented in England
- The target market is not found in uplands
Using the National Map for an overview leads to a desire for more detail. Using the same index values and data breakdowns as the National Map a local map of Northampton has been produced. This map shows the individual postcode sectors and how they index against National proportions.
The Local Map shows
- The urban areas are not good marketing targets
- Rural central Northamptonshire is a good marketing target
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