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To create more effective and efficient market planning, media strategy, customer acquisition, and cross-selling and retention programs, marketers must first be able to identify and understand their most profitable customers.
Segmentation links your customer data with household-level and neighborhood-level demographics, syndicated survey and primary research data to reveal exactly what types of consumers are currently using your products or services. Any customer files, lists or survey data with complete addresses or at least a ZIP Code can be coded with Nielsen’s segmentation systems. This allows you to identify your best prospect segments with the greatest efficiency for effective marketing strategies that align with marketplace demands.
In the exhibits below, customers are profiled by each segment to identify which are most likely to purchase a product/service (i.e. shop at Ann Taylor). The higher the index, the more likely the segment is to partake in the behavior. The chart shows that Winner’s Circle (06), Blue Blood Estates (02), and God’s Country (11) are the top 3 segments to shop at Ann Taylor. This allows you to focus your marketing efforts on consumers who are most likely to buy your product/service and reduce marketing expenditures on those customers who are not interested. While syndicated studies like MRI are invaluable, for the best results, we recommend that clients code their customer files with Nielsen Segmentation as real, customer data will out-perform syndicated surveys or panels.
The next step in profile analysis often involves looking at competitive shoppers, and in that case, syndicated data is instrumental for a competitive view. Profiles are created and analyzed to group segments into targets for you to concentrate your marketing efforts.
In the exhibit below, the Elite Empty Nesters in green are prime segments for Ann Taylor, but more critical for finding Talbots' shoppers. The Establish Professionals in pink, are core segments for both Ann Taylor and Talbots—i.e., the competitive battleground. The Young Up & Comers, group designated in orange, are critical segments for Ann Taylor, but less relevant for Talbots. Understanding which segments fall within each target drives the marketing strategy and messaging for customer acquisition and retention campaigns. The segments in yellow show low propensity for both retailers but may hold opportunity for sales and promotions, while the segments in gray are “off-target” in that consumers in these segments rarely shop either brand.
Questions about how Nielsen Segmentation can find customers to grow your business?
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