Want to segment your customers? Here is where you start.

1. Developing a Customer
Marketing Program
bd4hbig data for humans

2. “THE AGE OF THE CUSTOMER”
In 2013 Forrester Research coined this phrase hailing a new era of marketing where customers
where in control. It succeeded the “Age of Information” where companies like Google made sense
of large amounts of data to navigate the internet. The Age of the Customer meant that
companies needed a proprietary view of customers and could no longer rely on generic of third
party information on prospects. Companies like Apple displayed an uncanny ability to anticipate
customer requirements and become dominant
In 2015 many retailers fail to know accurately who their customers are and what they want.
When they can’t describe their customers from a unique perspective they fall back on third party
information about the market they are in. This creates a massive risk and opportunity. But the
solution lies under our noses in what people buy and how that changes every day.
The Age of the Customer requires a new equilibrium in marketing and how we use big data.
Winning companies will display an uncanny ability to anticipate customer requirements.

3. The New Equilibrium
• Most digital business’ dominant source of data is their acquisition marketing program
• The purpose of this data is to optimize acquisition metrics like CPM, CPA, Conversion Rate
+ add to that:
• Customer Marketing requires execs to build strategy from the transacting customer outwards
• Customer Marketing optimizes the revenue from people the business has already acquired
= In the Age of the Customer success will be in the hands of those who best achieve this equlibrium
Acquisition Marketing: Optimised to drive
new customer volume and minimise Cost
per Acquisition
Customer Marketing: Optimised to drive
Revenue per Customer, Lifetime Value, Profit
per Customer and Retention
Sales and Profit

4. Planning your Customer Marketing
Segment Customers
then analyse their
requirements and
attributes
Segment Target Position
Decide which groups
of customers to
target with offers or
content
Prepare offers which
reflect customer
requirements and
activity levels

5. Customer Segmentation Approaches
Clustering
Ad-Hoc Analysis
Network Theory
Benefits Constraints Conclusion
Relatively easy to
perform
Time consuming
and highly
subjective
Not scalable for
retailers with lots of
product
Replicable and
actionable
Skills heavy and
complex to do well
A better approach but
“best fit” models hide
outliers and date quickly
Sophisticated and
easy to interpret
Complex to build and
maintain
Requires major data-
science and computation
resource

6. Customer Segmentation Success
• Segments need to be substantial so that the are big enough to economically address
• Segments need to be exclusive so you know which customer lives in which
• Segments need to be accessible for instance by having customer identifiers
• Segmentation needs to be timely because things keep changing
• Segments need to be different in characteristics
Smarter
business
decisions
Better
marketing
promotions
Basis for
differentiation
Balanced
revenue and
profit growth
Respond to
changing
market
conditions

7. Big Data For Humans software engine automates segmentation using network theory. Any retailer can deploy the
most sophisticated method of understanding customers without the astronomical costs. It starts work on the
transaction data that everyone has, providing rapid results across channels. Anyone in the business can use it to make
smarter decisions and more profitable marketing. Getting started is simple.
Our clients range from small businesses to global retailers, but they have one thing in common.
They all make more money. We usually find some surprises too.
The Age of the Customer Now
bd4hbig data for humans