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How to use geodemographic segmentation data to win this holiday season

Segmentation customer data enables more effective communications and customer relationship management via relevant content and offers to specific customer groups. As a result, response rates, click throughs & conversions will increase and your holiday sales will skyrocket. Here are a few ways geodemographic segmentation data can help your business win this holiday season:

Increase reach and revenue

With the help of geodemographic segmentation, businesses can develop an advanced understanding of their audience, recognize their best customers, and distribute their energy and resources more efficiently into the right groups.

Let’s consider retailers who offer gift-wrapping services. According to the 2020 Loqate Holiday Insights Report, 10% of respondents stated that gift-wrapping was important this year. But for the retailer, just how visibly should they display the gift-wrapping option? The answer – display it prominently to those customers where it helps convert the purchase, and not so obviously to customers who don’t consider it a factor in their holiday purchase decision process. Companies will make this choice through past behavior (basically, if they purchased gift wrapping last year, lets offer it again this year). Geodemographic classification will allow you to extend this option to customers who are new, or who did not purchase it previously, but do look similar to the customers who did.

Building stronger customer relationships

Businesses that use geodemographic segmentation datasets can use demographic variables, such as income and age and lifestyle, to facilitate customer insight, targeting and marketing.

For instance, by utilizing Loqate’s Data Maintenance ‘Cameo Audience Segmentation Data’ (a dataset built upon demographic and geographic data at a zip+4 level), a company may learn that I have a high probability of having a family. This opens up the chance to promote other products geared toward a family-oriented customer such as children’s items or household products. It also might lead internally to a shift in segment, meaning that my LTV (lifetime value) and SOW (share of wallet) can be re-calculated. Instead of being a person to retain, I am now a person to cross-sell new products to.

Reduce holiday concerns

With the majority of holiday sales being shifted online, shoppers worldwide are increasingly worried about late, missing or stolen packages. From a recent Loqate survey, 30% of respondents stated that they were very worried about fraud when shopping online this holiday season. But age, location and other demographic features play a large part in overall levels of concern. To ensure that you are best serving your customer base this season, segmentation allows you to group customers and address their concerns with the most relevant communications.  

By matching the ZIP+4 to geodemographic segmentation data, an analysis can identify which groups were most worried about fraud. Therefore, when sending direct mail to promote the holiday products, retailers can ensure that mailings within these ZIP+4 codes include additional resources to reassure recipients, make them aware of other available purchasing channels (such as phone) and provide some top tips on combatting online fraud.

The key to a successful holiday shopping season

Many companies have an abundance of internal data (e.g. Amazon, eBay etc), enabling them to determine browsing behavior, view purchase history, and offer complimentary products. However, not all companies have this depth and breadth of data. This often leads to missed opportunities with regards to message relevance and product suggestions.

This holiday season it is important to build campaigns on accurate data, supported by segmentation, in order to drive personalized communications, which we all know leads to better response and conversion rates. If you’d like to learn more about how Loqate can help your business with personalization and data segmentation, take a look at our Data Maintenance service.

Rob Frost |

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