Database Reference
In-Depth Information
A detailed methodological approach for the development of value-based
segmentation will be presented in ''A Guide for Value-Based Segmentation''.
BEHAVIORAL SEGMENTATION
In behavioral segmentation the segments are identified with the application of
appropriate clustering models on usage/behavioral data that usually reside in the
organization's data warehouse or data marts. Thus behavioral segmentation can be
implemented with a high degree of confidence and relatively low cost. Attributes
that can be used for behavioral segmentation include product ownership and
utilization, volume/type/frequency of transactions, payment and revenue history,
and so on.
Typical behavioral segments that can be found in
banking
include:
•
Depositors:
Savings products - mostly deposit transactions using the network
of branches.
•
Future investors:
Insurance and investment products - few payment and
deposit transactions.
•
Consuming borrowers:
Consumer lending products (credit cards and con-
sumer loans) - moderate to many transactions using all channels.
•
Frequent travelers:
All kinds of products - many transactions through differ-
ent channels and many international transactions.
•
Shoppers:
Credit cards and other products - many transactions using mostly
credit cards for purchases.
•
Needs borrowers:
Mortgage loans and consumer loans - mostly payment
transactions using the network of branches.
•
Classic users:
Savings products and cards - moderate transactions mostly
through branches and ATMs.
•
Transactioners:
Payroll savings products with low balances - many transac-
tions mostly for making small withdrawals for everyday needs.
•
Inactive:
Unused savings accounts - no transactions.
Typical behavioral segments that can be found in
mobile telephony
include:
•
Roamers:
Heavy users of all available services - the key differentiating factor
is that they use their cell/mobile phones to make calls from abroad.
•
Superstars:
Heavy users of all available services and all new cellular services
(Internet, MMS, 3G, etc.).
•
Professional users:
Heavy voice users - increased voice usage and a very high
incoming community (the incoming community is the number of distinct callers
that have called the specific customer).
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