The Power of Audience Segmentation and Micro-locationBy Roberto Wong Rubín de la Borbolla | Mon, 12/14/2020 - 14:30
The topic I am writing about today is one to which my team and I have devoted a great deal of time in recent years, and it has been a real challenge. We were not looking for a simple yes or no answer; we were trying to find the path that would take us to a world of analysis from a location not yet explored. As described in the headline for this article, we can catalog it through segmentation and digital audience selections.
At first, information used to perform location-based analysis was only associated with "physical" sources. We use the physical descriptor to allude to information from sources such as census, surveys, field surveys, monitoring sensors and records of actions or transactions performed in physical locations.
An example of this would be a meteorologist who needs to analyze the territory to predict a hurricane's behavior. His source of information is obtained from weather satellites that use different sensors. Another example is a director overseeing the expansion of a retail chain who wants to determine where to open the next branch. His sources of information are the prediction of transaction behaviors and the population's characteristics obtained from the government’s census.
When developing a territorial analysis, it was practically impossible to use the information obtained from digital sources since the concept of anchoring this type of information to a region, territory, or location was hindered by the erroneous thinking of the idea in the cloud, or a space on the web; that is, cyberspace and not a place.
Why would we want to use this information? The richness of this information lies in analyzing tastes, behaviors, trends, preferences, and many other concepts. We have found that it can be used and combined anonymously.
After several years of research, we have been able to integrate much of the digital information by using the territory as the key to integrating it with the physical information. This method breaks paradigms. By segmenting the region by qualitative characteristics such as tastes, trends, preferences and all the information collected from digital sources, which also includes the information that is updated daily, digital campaigns can be activated much more precisely.
The ability to introduce information from the digital world to the physical world and vice versa allows us to generate territorial analyses at a much deeper level. It is the basis for being able to segment and select audiences from micro markets.
But what are audiences?
We describe them as a set or grouping of records integrated from similar characteristics. They can be qualitative, such as tastes or preferences, or quantitative. We associate demographic issues such as gender, years of education, or socioeconomic levels.
These audiences are being used in digital marketing to segment communication or advertisements based on the buyer persona's characteristics or a target that needs to be reached and thus send the right messages to those interested in the brand, product, or service. It is essential to emphasize the anonymity of the process since it is never based on a particular person.
Can you imagine what you could achieve by knowing precisely where your potential cluster's clients interested in your offer are at the right time and place?
At DESCIFRA, we are achieving what was once practically impossible: combining the physical and digital worlds. It has allowed us to add a level of more meaningful information to our predictive models, allowing our customers and business partners to improve their operational, marketing, or expansion strategies.