Consumers on the Move

WEI JIANG

YUDONG FU

Introduction The good news is you’ve got lots of customer data!

The bad news is you've got lots of customer data!

Solve based on four aspects: 1. Who buys from me?

2. What are they going to buy from me?3. Where can I find them geographically?

4. How can I best communicate with them?

Where we started

Jonathan Robbin---PRIZM

Potential Ranking Index for Zip Marketing

A comprehensive and scientific marketing research tool

How PRIZM works

PRIZM categorizes every US household into 66 demographically and behaviorally distinct types, called “clusters." It helps us learn about their likes, dislikes, lifestyles and purchase behavior

Who Uses PRIZM?

7

What’s changed

Computing technology development

1. The way to collect data is easier

2. Increase the capacity of the data

3. Changing with the consumers’ life- stage

The way to collect data is easier

Advances in computing technology, data quality and statistical techniques have allowed us to break the yoke of the once-every-10-years census data and deploy segmentation systems using household-level data. Now, instead of being able to differentiate between whole neighborhoods, marketers can differentiate between next-door neighbors.

Increase the capacity of the data

With household-level accuracy covering some 120 million U.S. households. And the old mythology of poor household data has dissolved with routine household-level match rates consistently in the 90% range, plus the ability to code tens of millions of records in just hours.

Changing with the consumers’ life-stage

When life-stage changes happen, previous attachments to purchasing behaviors, media preferences and lifestyles destabilize. Consumers are then open to trying new brands and products through new channels. This is a great opportunity for marketers that want to add the “when” to their targeting strategy.

Looking the future

As new media channels proliferate and mature, marketers must strike a balance between their choice of targeted households and the media selected to reach those prospects. New technology in addressable advertising

across “all three screens”:

1. Computer 2. Cable television 3. Wireless

Computer

For lack of a better term, “Personicx cookies” are the next step for boosting the effectiveness of online ad targeting.

Cable television

While the plumbing may be in place, the work of deciding which ad goes through which pipe still needs to be done thoughtfully.

Wireless

The “third screen” offers DMers the same opportunity to know a subscriber's consumer life-stage segment and to deliver targeted content whenever and wherever that person happens to be.

A lot has changed in the science and art of consumer segmentation in recent years. Improvements in the power and cost of computer technology, data quality and statistical techniques have provided DMers some powerful new tools. The opportunity to achieve true integrated marketing across all channels puts more control into marketers' hands than every before.

Reference

http://www.slideshare.net/chiefsdad/prizm

http://directmag.com/lists/marketing_consumers_move/