If you have a limited budget, consider using geodemographic segmentation
to create market segments for your institution and customers.
This post outlines a simple 5 step process for using geodemographic segmentation.
First, geocode the accounts to be analyzed. This can be done by using the address information from your customer database and the
geocoding function in a GIS system.
Second, define your primary service area (PSA) This is the geographic area that you can reasonably expect to
serve with services from your institution. We use drive time analysis which allows us to describing market areas and access
to client locations. Based on a specified travel time or travel distance along a street network this provides a soundation for
defining the PSA.
Third, set up your geodemographic segmentation layer. The most common method of doing this is through a GIS
system like Maptitude mapping software — but there are many other options available as well.
Fourth, correlate the accounts that fall into the
geodemographic neighborhoods. This step can be very helpful in determining patterns among geographic data and demographic information.
Finally, summarize the results! There are many ways to do this: You could create a map or table, or both!
What is Geodemographic Segmentation
Geodemographic segmentation refers to a range of methods used for classifying and characterizing neighborhoods or localities based on the
principle that residents living near each other are likely to have similar demographic, socioeconomic, and lifestyle characteristics.
The use of GIS can play an important role in various areas in your institution, such as Expansion of Customer Base,
Improvement in Quality and Delivery of Services, Increased Customer Satisfaction, Consistent Business Growth, and Increase in
Profitability. GIS helps by providing support in decision-making and strategic planning. Some of the major areas are discussed below.
Why Use Geodemographic Segmentation
If you have a finite amount of money to spend on marketing, geodemographic segmentation will give you the best chance of successfully connecting
with specific audiences. Here’s what it can do for your organization:.
Benefits
Geographic segmentation allows you to target location-specific keywords and demands. This is incredibly useful if you’re operating with a
smaller budget or want to develop awareness in a particular region.
Increase profits: As geographic segmentation allows you to target specific audiences and deliver tailored marketing
campaigns, you can generate profits faster while saving time and money.
Drive growth: By targeting the right people, you can increase sales and drive business growth. Ensure you revisit
your geographic segmentation regularly — especially when entering new markets or advertising new products — to get the best
value from your campaigns.,
Focus efforts: Geographic segmentation allows you to target location-specific keywords and demands.
This is incredibly useful if you’re operating with a smaller budget or want to develop awareness in a particular region.
Improve communication: Every region has different needs, shopping habits, and ways of doing business. Geographic segmentation
takes into consideration the way people communicate within regions and communities
We Can Help!
GISBanker is a premier provider of GIS Mapping Solutions, Analysis, Segmentation, Data Enhancement, and Marketing
Analytics for financial institutions. Visualize where key market segments are located within your market.
They can be a resource for you in marketing planning and more.
GISBanker is here to help you get the most out of your geospatial data. We're available for assistance in using GIS,
these files, or to provide more detailed analysis integrating multiple datasets to develop a comprehensive understanding.
And we can help you develop easy-to-understand maps that will help you leverage your position in the market and take full advantage
of your shifting market dynamics and strategic goals.
Simply call or email us with any questions you may have!
