Sierra Information Services
Maximizing your investment in the SAS® System...
...and
those in your organization who use it.

CONSULTING BY SIERRA INFORMATION SERVICES
Customer Segmentation

Customer segmentation is more than just applying cluster analysis or
other multivariate statistical techniques to your data. Effective
segmentation occurs only when substantive knowledge of market, customers
and data sources are combined with appropriate data preparation and
substantive judgment. Sierra's engagements in this area include:
- Segmentation analyses of the residential customers served by a major Northern California public utility. Identified “clusters” which were then described/labeled via intensive examination of the demographic, financial, lifestyle and related “attributes” of the customers assigned to each cluster. Results were then joined to another data table containing projected increase/decrease in monthly bills under several proposed new rate plans. Performed all data management and preparation, implemented statistical clustering routines, selected an “optimal” number of “segments,” and then assessed impact of new rates on customers assigned to these clusters. Results enabled the utility’s management to understand how the proposed revised rate plans would impact readily-identifiable “segments” of their residential customer base before proposing the new plans to senior management and state public utility agency regulators.
- Customer segmentation and intent-to-purchase/repurchase analyses for
an international manufacturer of computer storage devices and related
software products. Analyses identified of 'clusters' of similar customer
groups along various 'environmental' measures, such as size of company,
size of computing environment, and computing environment complexity,
which were then used to develop advertising campaigns targeted to these
groups.
- Cluster and other multivariate analyses of variables relating to
patient access member satisfaction and operational indicators for the
medical group of a large Health Maintenance Organization. Results were
used to help develop performance standards used by medical office
managers and physician chiefs-of-service to measure progress towards
meeting goals for patient access to health care services in a timely
manner.
- Customer segmentation and marketing campaign response analyses for
the saving and investments division of a large bank. Created statistical
models predicting likelihood of customer response to sales campaigns for
mutual fund, retirement account and other investment products as a
function of customer account balance levels, product portfolio and
demographic characteristics.