What is SegmentologyTM?

SegmentologyTM is our proprietary approach to developing relevant customer insights about the types of relationships you have with your customers. The definition of SegmentologyTM is:

"The discipline of scientifically grouping consumers into unique and relevant subsets that provide insight into the mind, needs, and behavior for the purposes of marketing, merchandising, and business strategy development and execution."

This process has been shown to provide the most comprehensive insights into customer relationships available today: customer valuation, demographic composition, product and category affinity, competitive standing, and the attributes that are most important in their decision-making (convenience, price, etc.). All of these insights are developed and customized based on your information, and the resulting segments (and sub-components) are applied to your database for marketing and business intelligence.

We've taken our best practices in custom analysis and research and combined them into a process and a point of view that tells you not only how your customers think and act, but what it means for your business. There are several benefits to this approach:

1. Segmentation through building dimensions. Each dimension defines an aspect of the customers' relationship with the category and your company.
   In addition to a customer segments, there are specific dimensions that can be used for analysis, targeting, and versioning of communications.
2. Latent Class modeling is used to create a final segment solution, which allows for a more proper statistical definition of segments.
   Segments are more "crisp" than "clouds", and are more complex (rather than one-dimensional).
3. Leading-edge primary research methodology. We utilize discrete choice / choice-based conjoint, and observe consumers making decisions, not merely asking them what's important.
   This captures decision-making attitudes with more consistency and accuracy than other methods, since it is through observation of choices.
4. Attribution of attitudes to the database. We've spearheaded Hierarchical Bayesian Multinomial Probit modeling within the industry, which achieves attribution rates of 70%+ onto a customer database.
   Attitudinal information can play a large role in versioning communications and contact strategies, as the attribution of these attitudes is sufficiently large.
5. Comprehensive customer segmentation through the use of attitudes, behaviors, demographics, competitive information, and lifestyles.
   The result is the most holistic customer segmentation available in the market today, due to the breadth and depth of analysis of individual dimensions.
6. Demographics and lifestyles are available directly from CAC Group for all analysis purposes, and variables from analysis can be easily incorporated into the database.
   Our expertise and on-site availability of data reduce processing and analytic costs and allow for greater flexibility.

To learn more about how SegmentologyTM can help your business, contact us at brukstales@cac-group.com or call (847) 805-9802.