The Data-Driven Advantage

April 12, 2021

Delve Goes Deeper: Data-Driven Segmentation

Learn how Demographic- and Psychographic-Based Segmentation leads to the most useful and robust results.

This is the second post in our Data-Driven Segmentation series, exploring the methodology and business applications behind DELVE’approach to customer segmentation. 

Segmentation offers a powerful framework for personalization. While Rule-Based Segmentation can be effective, Data-Driven Segmentation is a robust solution for marketers who would like to use several variables to define segments.

Data-Driven Segmentation creates groups of customers who share key similarities. A successful segmentation algorithm groups similar customers together into the same segment and dissimilar customers into different segments.

As discussed earlier in this series, Data-Driven Segmentation can be performed using any available customer data: behavioral, financial, personal interests, and so on. However, DELVE has found that going deep into that data with Demographic- and Psychographic-Based Segmentation (pertaining to values, opinions and interests) leads to the most useful and robust results. 

Demographic and Psychographic-Based Segmentation

It is important to uncover both what commonalities are present in customers who share the same segment and what differences separate customers who fall into different segments. 

For example, one segment may be composed of older, high-income, married females who skew politically conservative while a second segment may be composed of younger, middle-income, single males who skew far more liberal. Awareness of these demographic and psychographic profiles is key to interpreting behavior and building personalized messaging and targeting strategies. 

For brands who do not already have access to demographic and psychographic data on their customers and prospects, DELVE partners with several data providers to append hundreds of demographic fields to brands’ customer files with a match rate of 60-90%. Commonly used appended fields include age, income, marital status, education, gender and geolocation.

This in-depth segment profiling is the key to understanding the demographic and psychographic traits that make up each group of customers—and is the first phase of DELVE’s Data-Driven Segmentation methodology.

Ready to take your ads, and your business, to the next level? Get in touch with the DELVE team today.

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