Conventionally, demographic segmentation process is done on historical customer data and ideal target profile for products are created.
Customers that match these profile are targeted with offers to subscribe for the product.
At times, psychographic variables are also used to segment customers. Very rarely, behavioural variables are used to segment customers.
Acquigo differs from conventional segmentation at two levels.
Acquigo creates micro-segments i.e., segments within segments by introducing new variables for fine tuning the segmentation process.
Acquigo considers behavioral variables to micro-segment customers and allows demographic and psychographic variables to be applied to further fine tune the micro-segments.
A micro-segment is a small number of well differentiated customer group that have similar characteristics with other customers in the group but are dissimilar with customers outside the group.
Acquigo comes with a rich set of pre-built clustering algorithms that run on customer master, product master and transaction data to identify various micro-segments within the existing customer base.
Since a number of behavioural attributes are used to micro-segment customers, different permutations and combinations result in single customer mapped in to many micro-segments.
Once these micro-segments are identified, a classification model is run on new customers and their transaction data to slot them in to various micro-segments.
The entire micro-segmentation process including the execution of clustering and classification algorithms happens in the background without any user input, making it completely automated.