Segmentation tools – do you use them?

At the last meeting of the Observatory’s Population and Society Group, members shared how they use market segmentation tools.

These tools divide the market or population into subgroups with similar motivations, and are used for social and market research. Widely-used bases for segmenting include:

  • Geographic differences
  • Personality differences
  • Demographic differences
  • Use of product differences

Demography and Health group members use the segmentation tools to discover such things as marketing preferences, lifestyle choices and concentrations of ethnic groups. This information is then used to direct public services in the West Midlands.

The market leaders in segmentation tools seem to be Experian’s MOSAIC tool and CACI’s ACORN tool. Both have their pros and cons.

The Demography and Health group is interested to learn how widespread the use of these tools is in the West Midlands’ public sector, with a view to seeing whether partners could be drawn together to purchase the software together. Not only could this save money, it could lead to greater joined up working.

Do you use segmentation tools in your day to day work? Would you find it useful to work closer with partners? Please add your comments, questions and thoughts here…

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4 Responses

  1. Just to let you know that we are a recent user of Mosaic Public Sector at Herefordshire Council, early days using it and reviewing the tool as a means to targeting services to those in need.

  2. People might wish to be aware of a Pilot Project that was commissioned by the IDeA and the Local Government Information House last year called “The Purchase of Infomation Project” . This has already done some preliminary “mapping of public sector organisations purchase and utilisation of commercial customer and citizen data. The author of the report, which is not yet in the public domain, is Deanne Sorrell of 27 Consulting. I am happy to talk with any interested parties about this issue which the West Midlands Regional Improvement and Efficiency Partnership is looking to work with councils on as they prepare for CAA

  3. You may be interested in the upcoming event ‘Social Marketing and Segmentation’ in Manchester on 28 January 2009, hosted by the Local Authorities Research & Intelligence Association (LARIA).

    link removed [the event details are no longer available on Laria]

    The event “will look at the importance of Social Marketing and Segmentation as a way to gain a deeper understanding and insight into the disparate needs of our local communities and population… Delegates will also have the opportunity to look at some of the very latest software that is currently available and how it can assist them in this task.”

    Andy Wright and Brian Higgs from Dudley Metropolitan Borough Council will present on ‘developing a corporate approach to customer segmentation’.

    There is also an afternoon session with Ross Simson on Birmingham City Council’s activities in relation to segmentation, customer strategy and customer knowledge.

  4. Thanks for your comments. The Demography and Health group meets again next week and I will highlight the points you have raised to them. Will post any updates here.
    Oliver

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