Segmentation
Marketing uses segments to divide the target market into manageable groups to offer a tailored experience of our products and services. It helps us offer varied levels of service to clients based on value, varying methods of communication based on different requirements and fine tune our acquisition based on where and how our prospects consume their media.
The benefits of segmentation include:
Targeted messaging
Personalized experience to increase life time value
Increase acquisition efficiency
Increase brand loyalty
Identify gaps in markets to increase profitability and foster new product development
At StoneX Retail we have 3 segmentation models in place:
Personas: Segmentation at the point of application based on the answers clients enter in the form. This offers our marketing team an opportunity to fine tune acquisition and offer tailored client experience based on their experience with trading, technology preference, etc.
Experian Segments: This is a third party segmentation data we source at the point of application. We source Experian Mosaic segments and Financial Strategy Segments when a client applies for an account with City Index UK or Forex US service offerings.
Mosaic is a cross-channel consumer classification system which segments the population into 15 groups and 66 types that helps you to understand an individual's likely customer behaviour.
FSS is underpinned by almost 2,500 data variables and delivers information on the types of products and services individuals need – and want. It classifies over 50 million UK consumers into 15 groups, 55 types and 135 distinct person-level types that differentiate the characteristics and behaviors of individuals within a household.
Value Segments: This segmentation is based on client deposits and Revenue. It is used by our Sales and high net worth teams to ensure we can offer a high touch service to our high value clients.
PERSONAS:
The goal of Personas definition is to provide useful information to optimise media targeting and understand our customers’ types
How do we make the clusters?
Clustering acquired clients based on:
Onboarding Questionnaire Answers to questions regarding
Trading Experience
Stated Net Worth
Stated Annual Income
Age group
How to use Personas?
Acquisition:
Pick the Persona that you would like to acquire
Use the Profile to better design the creative and define the targeting:
Age
Gender
City / Postcode
Trading Experience
Use the profile to better target Partners:
Net Worth
Trading experience on different assets (to be added)
Device
REFOCUS MEDIA SPEND
Check which type of Personas we are acquiring through different Media Partners / Campaigns
Based on the Mix each campaign is acquiring tune the spending
Check if spending changed the trend
Identify new profitable audience
SET UP A/B TESTING & PERSONALISATION BASED ON PERSONAS
A/B test different creatives to understand which one attracts the intended Persona
Create personalised experience based on Personas – New to trading, experienced traders, etc
EXPERIAN SEGMENTATION
Mosaic is a powerful cross-channel consumer classification system built for today's multi-channel world. It has evolved to help you understand your customers' likely characteristics and communicate with them in the most relevant ways. It allows you to ensure you are relevant to them, so you can reach the right people with the right message at the right time – every time.
Being effective across all channels – from traditional offline to digital TV and online display – the Mosaic consumer classification enables accurate and consistent targeting, so consumers receive marketing relevant to them.
Mosaic is a family of classifications optimised for different sectors and markets. There’s Mosaic Digital & Mosaic Shopper Segments, plus insight packs including sectors such as Public Sector, Automotive, Retail, Financial Services, Lifestyle and many more, and regional packs covering England, Scotland, Wales, NI and London.
Mosaic is Experian's comprehensive cross-channel classification system.
Building on a 30-year track record of identifying changes in the structure of UK society, Mosaic creates an easy to understand segmentation that allocates individuals and households into groups and detailed types allowing you to make sure that you can send relevant communications.
Similar segmentation is also available for USA.
https://www.experian.co.uk/business/platforms/mosaic
Financial Strategy Segments tool gives a rare and fascinating overview of today’s UK adult population at macro and micro level by exploring current financial behaviour trends and the emergence of new types of consumers. This insight gives organisations a much deeper understanding of consumers’ financial behaviour and allows you to communicate with them more effectively.
A similar view is available for USA.
The Mosaic and Experian segments are requested via an API call when a client fills out an application form. Currently this data is used for marketing and compliance teams. We have used this to find out target market for Cash Equities.
VALUE SEGMENTS
We first introduced Value segments in 2018 in StoneX Retail. However, after 2 years, The current Value Segments became too broad for our HNW teams to effectively provide the service to our High Value clients.
We have now redefined our Value Segments (1 – 7) based on client deposit, revenue and balance.
Value segment rules
Where can I find all the segmentation data?
Salesforce for client operations and CRM
Marketing cloud for acquisition
Data warehouse