SAS^® Customer Segmentation

Segmenting customers according to their likely behavior and potential profitability is vital to understanding them. And understanding customers is more important than ever in today's competitive economy, where declining customer loyalty and high customer turnover continue to erode profit margins.

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However, implementing an effective segmentation strategy is a serious challenge for many companies, since they often have difficulty making sense of the huge volumes of customer data that exist throughout the enterprise.

Many companies also lack the ability to track changes in customer segments – such as changes in life stage or overall buying habits – leaving no way to evaluate the long-term success of their marketing efforts.

Without accurate, verifiable segmentation of customers with respect to value, strategic decision makers cannot get the information they need to evaluate and execute strategies for improving customer profitability and the efficiency of marketing campaigns.

Better marketing through accurate segmentation
SAS Customer Segmentation uses the unmatched analytical depth of SAS to help marketers create more accurate customer segments and predict customer behavior, which in turn gives companies the power to create better-targeted product offers, product communications and bundled services.

The solution identifies and categorizes the customer base into distinct groupings with similar characteristics to:

• Create manageable groups for targeted activities such as marketing campaigns.
• Identify important attributes, needs and wants of each customer group.
• Compare the characteristics of different segments to determine segment-specific actions.
• Set effective, measurable goals for each segment.

SAS Customer Segmentation uses demographic, geographic, attitudinal and behavioral data available from across the enterprise to develop highly accurate segments. Companies can then segment their customers according to a multitude of industry-specific variables, including current and future profitability.