Case Study
Client
A Marketing Association
Project
Identify Unique Member Segments & Measure Loyalty
Background
DataCo has developed customer segmentation schemes for many clients, with the goal of identifying logical groups of customers or members who could be treated uniquely to improve overall loyalty and/or performance. One of our clients, a marketing association, asked us to conduct a cluster analysis to define member groups for which special curricula could be developed and loyalty
measured.
Objectives
To identify member segments that may respond positively to new and unique benefits and personalized communications. Establish a methodology for measuring member loyalty and calculate indices for each member segment to determine where the association should focus efforts.
Execution
DataCo ran cluster analyses of the member base and identified 7 unique segments based on 3 key factors: Size of Business, Industry, and Job Function of member. In collaboration with the association, we then developed a Commitment Index which provided a relative weighting of member loyalty to the association. For each member segment, we calculated an overall Commitment Index to rank-order each group based on their loyalty "value" to the association.
Results
The association is now implementing customized marketing programs and curricula to address each cluster with the goal to increase each cluster's Commitment Index over time. The initial indices are:
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