Customer segmentation, in its simplest form, is the process of analysing
customers with the objective of categorising them into 'like' groups based on similar
demographics, characteristics or behaviours. Understanding the diverse characteristics
of the various customer segments they serve, enables ogranisations to effectively
target particular groups of customers by developing and executing tailored strategies
that meet their specific needs.
"They [Lightstone] bring a new dimension to understanding how your customers behave.
Having them onboard with strategic planning is an enlightening experience"
- Francois Viljoen GM: Dealer Development and Training
Customer Segmentation Process
Lightstone runs customer data through a geo-coding process which assigns a point
on the map for each customer location (usually based on physical address of the
customer) and then integrates this information into the Lightstone proprietary model for analysis. This
creates a rich, multi-variate data set that generates unique insights and facilitates
meaningful customer segmentation. Through a combination of spatial and statistical
analyses, we are able to help clients sift through various data sets and identify
their 'natural client' segments.
As part of the customer segmentation process, Lightstone utilises its own
segmentation product called the DemProKey. The DemProKey provides a demographic
profile of the people residing in each of the ~80000 enumerator areas (EA's) that
cover South Africa. Initially built using Census 2001 data, the DemProKey has been
updated and maintained using a combination of Deed's Office data (for property transactions),
recent StatSA releases and data brought in from Global Insights and GTI.
The DemProKey reflects the profile of an area based on:
- Monthly Household Income
- Breakdown of Age Groups
- Education Levels
- Employment Status
- Types of Dwellings
Contact us for more information and pricing of Customer Segmentation.