Segmenting the Customer Base
A new segmentation was required which would identify the demographics, attitudes and needs of each segment, and also enable every SSE GB customer to be allocated into a segment with a high level of confidence. This was pivotal if the SSE communication strategy was to be successful – a mix of behavioural, demographic and attitudinal understanding would allow propositions to be developed, but only if the segment was known for each and every customer could the propositions be targeted and communicated.
Adroit took feeds of customer data directly from the SSE data warehouse, and coupled this with demographic, attitudinal and media consumption data from TGI. The resultant data-set enabled Adroit to explore a multitude of segmentation solutions, with varying emphasis given to the transactional, demographic and attitudinal elements. Numerous statistical techniques were run to build the optimal solution, and after many iterations and reviewing with key stakeholders, a balanced solution was built. Segment rules were generated in SQL for direct application onto the source systems. Each segment was highly differentiated from the next, not only in transactions and behaviours, but also in their demographics and attitudes.
We were able to write the segments back across the entire customer base, with 82% accuracy, and every customer allocated into a segment. Two workshops were held with the Marketing team to build the strategy for each segment, and tactical plans developed. Key outputs were a set of strategies and business actions for each segment, and a proposition relating to each segment for retention and cross-sell. The segments are now a key element of the campaign selection process, and feed through into customer service operators’ screens in the call centre to enable them to manage CRM contact plans.