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Customer segmentation 2.0

Customer segmentation 2.0


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Customer segmentation 2.0

Taking segmentation to the next level

By Mette Hjortsø, Senior Consultant, KPMG in Denmark


Much has happened since the dawn of marketing when communication was one-way only and interactions with companies fewer. Two-way communication and intense customer focus has become the default for marketers as the number of competitors and channels increase. With this power at hand, customers can make or break companies by spending their money elsewhere if they are not happy with the service or product offered.
One way to stand out in this complex marketplace is to offer customised products. Traditionally, this was handled by grouping customers into segments, each with their specific characteristics, since the approach makes logical sense and is easy to understand.

With the recent years' technological quantum leap, we capture more information than ever before about our customers and their transactions. We are now able to combine data collected internally with external data such as crime rates, traffic, health projections, etc. and get a solid understanding of behavioural patterns both offline and online using big data algorithms and advanced analyses. Combining traditional segmentation and behavioural analyses gives a finely grained understanding of individual preferences and behaviour and thus allows for hyper-customisation in all areas, from channel selection and offer targeting to product design and marketing efforts.

One example of segmentation based on behavioural patterns is for insurance companies that track large amounts of data on clients. By enriching internal data such as age, gender, current product portfolio, etc. with online behaviour such as time spent on each subsite of their website for comparable segments and external data, the insurance company is able to predict changes and proactively contact the given client with a customised product.

© 2020 KPMG Statsautoriseret Revisionspartnerselskab, a Denmark Limited Liability Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

KPMG International Cooperative (“KPMG International”) is a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm.

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