How Segmentation Penetration Map (Business Analyst) works

You can create penetration maps based on a selection of target segments. To illustrate, you can create a target that includes four or five segments. The Segmentation Penetration Map summarizes the penetration values for the target segments for the level of geography you specify. These maps help you find concentrations of your target segments. You can use these maps to direct your marketing efforts or locate a new site in areas where there are high concentrations of your target segments.

The following is a practical example of how you can use this tool to help locate a new store location and direct marketing efforts to the best locations. Assume that you have a store location in the San Diego, California, area. You have a set of customer records for this store location. This particular store has been very successful, and you would like to locate a new store in San Diego in an area where the same types of customers are located. Once the new store is constructed, you want to better direct your marketing efforts for the new store and reach as many of your target customers as possible.

You would start by creating a segmentation profile of the existing San Diego customers using the Create Profile By Table Geocoding tool. Then, you would create a segmentation profile of San Diego County using the Create Profile By Area Summation tool. Once the profiles are created, you can create a Customer Tapestry Profile Segmentation Report using these two profiles. The results of the profile indicate that your existing store has three core segments:

• 2—Suburban Splendor
• 4—Boomburbs
• 6—Sophisticated Squires

Each of these segments has an index and a percent composition that is relatively high. You can conclude that you are dominating in these segments because these segments have a high index and make up a large portion of your customers.

If you are going to locate a new store in the San Diego area, you will want to find a location that has a high concentration of these core target segments. For example, you can create a map that illustrates the penetration values of the three target segments within the ZIP Codes in San Diego. The thematically shaded value in each ZIP Code represents the percentage of households that are within the three target segments. This map is very similar to the Market Penetration tool. Areas with very high concentrations of the target segments represent areas with the highest proportion of your target customers in the existing store.

For example, in the map below, you can guide your real estate department in selecting a new store location in the ZIP Codes that are shaded red and dark orange. These ZIP Codes have the highest concentration of the three target segments. You can also use this map to direct your marketing efforts in these same ZIP Codes. For example, you may want to place advertisements on billboards in these areas.