Customer Segmentation - Data Mining Techniques in CRM: Inside Customer Segmentation - page 198

• Deliberative loyals: Always with the optimum program/product, normal
changes of programs/products in search of optimization, old customers.
• Emotive loyals: Loyal but not includedwith either the inertials or deliberatives.
SOCIO-DEMOGRAPHIC AND LIFE-STAGE SEGMENTATION
In demographic segmentation customers are grouped according to their demo-
graphics. It is a widely used segmentation since demographics are considered
to have a strong influence on the customers' needs, preferences, and consum-
ing/usage behaviors. We should point out, though, that in many cases people in
the same demographic group may have different wants and needs as customers.
The segments are typically created with simple business rules on the following
customer attributes:
•Gender
• Race
•Socialstatus
• Education
•Age
• Marital status
• Home ownership
• Family income
• Number of children/family size
• Age of children
• Occupation.
The family lifecycle segmentation is mainly determined by customers' age,
marital status, and number/age of children. Typical family lifecycle segments
include:
• Young, singles
• Young families/no children
• Young families/children under 5
• Growing families/children above 5
• Families with children
• Older retired persons.
Quite often, the customers' demographic data available in the organization's
databases are limited, and/or outdated or of questionable validity. Organizations can
augment their demographic data repository by purchasing data from an external
supplier, provided of course that this is permitted by the relevant legislation.
Alternatively, the data can be collected by a market survey.