Creating a more targeted customer segmentation tool
- Bespoke segmentation model covering all Honda’s prospect and customers
- Full use of data available to develop 7 rich segments
- Improved targeting approach and message content relevance
- Now used across a large range of Honda’s marketing communications
In the past, Honda had matched products to prospects based on the perceived image of the cars in their product range. To create a more targeted approach, this needed to be changed to a more customer driven solution. We were given three months to develop a segmentation tool, with a limited budget. We found that traditional geo-demographic segmentation tools did not create meaningful segments for Honda and therefore targeting was not as accurate as it could have been.
So in 2003 we decided that a bespoke model could be created for Honda, using MOSAIC, vehicle sales, value and demographics. The result was seven customer ‘Honda Groups’ to which a customer or prospect is assigned. The segments are also assigned to vehicles, so we can target the right types of consumer with a particular vehicle. The segments are at the heart of all marketing communications for Honda, and have been successfully used across cars, as well as identifying lookalikes across their motorcycle and power equipment divisions.
This segmentation tool was most recently updated in 2010 to include a new version of MOSAIC, new customer types, customer satisfaction data, Ad Tracker data for brand loyalty, TrueTouch (channel preferences) and TGI covering brand lifestyle and media preferences.
The segments help Dealers understand their local audiences, and are in use by all Honda marketing and insight teams, as well as their advertising, digital and media agencies. A pivotal part of our transformation of Honda’s relationship marketing, our data planning and this segmentation model is part of the reason that we are responsible for 15% of all Honda’s retail sales.