Customer and Prospect Profiling
ROI Dataworks develops customer and prospect profiles to help marketing target, and create relevant communication to increase retention, acquisition and penetration. Using data, we find actionable segments with stories.
Demographic and psychographic profiling allows marketing leadership to segment customers and speak to them based on their wants and needs, making the communication relevant to the customer.
Adding transaction data (or purchase behavior) enhances the story and again, allows marketing to communicate with each segment at the right time, with the right offer, using the right vehicle (web, mail, phone).
Together, using profiles to create segments increases customer retention, acquisition, and penetration along with increasing the organizations return on investment for marketing dollars.
Definitions by Profiling Type
Demographics are descriptive variables about households. These include age, income, home value, presence of children, marriage status, education level and other variables of interest. This information is compiled by large database companies through government data, surveys, warrenty cards and other reliable data sources.
Psychographics combine demographics and behavior attributes that describe households in block groups. The theory of "birds of a feather flock together" is the basic concept. Households in neighborhoods are similar and through modeling and surveys, combined with demographics, 70 different segments exisit thoughout the US. By identifying segments and calculating indexes, companies can take advantage of the similarities of groups using creative, offers, and messaging to increase results.
Firmographics describe business variables. By segmenting business based on employee size, revenue, SIC code (type of industry), headquarters vs. branch, etc., companies are able to focus efforts on businesses in their target. For example, if a company is selling million dollar products, a business with less than $250,000 in revenue is not the proper target. Knowing this information helps business understand their customer base, and make sure the prospects match the same profile to ensure convesion and return on investment for sales and marketing spend.