Predictive segmentation in action - using CHAID to segment loyalty card holders

This paper illustrates the use of a post hoc predictive segmentation procedure to segment the loyalty card market.
  

Predictive segmentation in action - using CHAID to segment loyalty card holders

Laura GalgueraUniversity of Oviedo

David LunaBaruch College

M. Paz MéndezUniversity of Oviedo

INTRODUCTION

To build competitive advantage both in the short term and in the longer term, companies need to segment the market. Market segmentation can aid in better achieving both strategic and tactical objectives. For strategic purposes, market segmentation results can be used to prioritise market segment opportunities. Kotler (1989) has called this the 'four Ps' of strategic marketing (which are additional to the four Ps of tactical marketing): probing, partitioning,...

Not a subscriber?

Schedule your live demo with our team today

WARC helps you to plan, create and deliver more effective marketing

  • Prove your case and back-up your idea

  • Get expert guidance on strategic challenges

  • Tackle current and emerging marketing themes

We’re long-term subscribers to WARC and it’s a tool we use extensively. We use it to source case studies and best practice for the purposes of internal training, as well as for putting persuasive cases to clients. In compiling a recent case for long-term, sustained investment in brand, we were able to support key marketing principles with numerous case studies sourced from WARC. It helped bring what could have been a relatively dry deck to life with recognisable brand successes from across a broad number of categories. It’s incredibly efficient to have such a wealth of insight in one place.

Insights Team
Bray Leino

You’re in good company

We work with 80% of Forbes' most valuable brands* and 80% of the world's top top-of-the-class agencies.

* Top 10 brands