Getting to Know ESRI Business Analyst Fred L. Miller, PhD Murray State University

Part VI: Customer profiling and segmentation with the ESRI Business Analyst Desktop

Segmentation Module

Getting to Know ESRI Business AnalystFred L. Miller, PhD

Murray State University

Presentation topicsThis presentation will cover: The decision scenario for Living in the Green Lane Relevant business GIS tools and tasks Chapter 9: Creating customer profiles

Geocode customer addresses and attach demographic and segment data to them

Develop profiles from customer lists, layers, geographic areas, and survey data

Develop reports which summarize customer profile characteristics Assign customers to target groups based on sales history

Presentation topics (cont.) Chapter 10: Segmentation analysis for enterprise

expansion Assign segments to Core, Developmental, and Niche target groups based on their

composition and/or sales volume Create reports using Market Potential Indexes to determine target group behaviors, values,

lifestyles, purchasing patterns, and media exposure Assess the potential sales volume of geographic areas based on their similarity with

attractive customer profiles Assess the ability of attractive geographic areas to support new company-owned and/or

franchised stores Create customized formal Segmentation Studies to support research conclusions and

recommendations

Evaluation of ROI for business GIS analysis Business GIS learning goals and skills

LITGL decision scenarioWith their expansion plans in the Twin Cities area now complete and their green lifestyle center concept in place, Janice and Steven wish to:Create comprehensive profiles of current customers and their purchasing patternsIdentify high-value customers within the existing customer base and establish target groupsUse target group profiles to increase sales by

penetrating current markets more thoroughly identifying favorable expansion opportunities in other parts

of the United StatesProduce a formal Segmentation Study to document and support these growth plans

Relevant business GIS tools and tasks Mapping customer location with geocoding Attaching sales, demographic, and lifestyle data to

customer records Generating profiles of high-value customers Identifying local concentrations of high-value

customers who are not yet served Identifying potential markets across the country that

match the high-value customer profile Estimating the sales potential of potential markets and

identify specific attractive store locations within them Preparing comprehensive segmentation studies to

support business decision making

Chapter 9: Creating customer profiles

In this chapter, you will perform the following Business Analyst Desktop tasks:Geocode customer addresses and attach demographic and segment data to them Develop profiles from customer lists, layers, geographic areas, and survey data Develop reports which summarize customer profile characteristicsAssign customers to target groups based on sales history

Geocode and profile customers with Address Coder

Create map, reports, and charts of customer profile data

Assign customers to target groups based on sales history

Chapter 10: Segmentation analysis for enterprise expansion

In this chapter, you will perform the following Business Analyst Desktop tasks:Assign segments to Core, Developmental, and Niche target groups based on their composition and/or sales volumeCreate reports using Market Potential Indexes to determine target group behaviors, values, lifestyles, purchasing patterns, and media exposureAssess the potential sales volume of geographic areas based on their similarity with attractive customer profilesAssess the ability of attractive geographic areas to support new company-owned and/or franchised storesCreate customized formal Segmentation Studies to support research conclusions and recommendations

Assign Core, Development and Niche Segments andGenerate Market Area and Gap Analysis Map and Report

Assess alternative markets for expansion andevaluate opportunities for company-owned and franchised Stores

Create comprehensive segmentation study to support plans for sales growth

Business GIS learning goals and skillsIn Part VI you will learn to use Business Analyst Desktop to:Geocode customer addresses and attach demographic and segment data to themDevelop profiles from customer lists, layers, geographic areas, and survey dataDevelop reports which summarize customer profile characteristicsAssign customers to target groups based on sales historyAssign segments to Core, Developmental and Niche target groups based on their composition and/or sales volumeCreate reports using Market Potential Indexes to determine target group behaviors, values, lifestyles, purchasing patterns, and media exposureAssess the potential sales volume of geographic areas based on their similarity with attractive customer profilesAssess the ability of attractive geographic areas to support new company-owned and/or franchised storesCreate customized formal Segmentation Studies to support research conclusions and recommendations

Evaluation of ROI for business GIS analysisThe costs of this Business Analyst application are: A Business Analyst Desktop and Segmentation Module The time of managers and business GIS analyst

The benefits of this Business Analyst application are: Increased revenue from higher sales at existing stores Optimized projected sales from stores in new geographic areas

The estimated incremental revenues are: About $190,000 in increased purchases in existing stores About $6 million difference in projected revenue between selected

region and alternatives

Part VI: Customer profiling and segmentation with the ESRI Business Analyst Desktop

Segmentation Module

Getting to Know ESRI Business AnalystFred L. Miller, PhD

Murray State University