+91 9555378437

Blog Post

Segmenting A Database With Behavioral Clustering

Segmenting A Database With Behavioral Clustering

Every business develops its own database with time, be it the in-house one or outsourced from database provider companies in India. The challenge is to compile, analyze, and sift through these huge mountains of data in order to build the perfect slices of audience you need. So for this, database segmentation is a process a business cannot avoid.

 

What is Database Segmentation?

In order to match all the attributes of a business, the database needs a strategic approach for slicing, dicing, and mapping of the data and this is called Database Segmentation. Through it, you can take a deep dive to analyze the market segments and take out the best prospects. There are reasons for using database segmentation in a business:

  1. You can target a specific audience with a specialized approach.

  2. You can take a better look at the engagement rate of the business.

  3. You can analyze marketing campaigns effectively.

  4. You can give a structured outlook to your business.

In business, the most important attribute is its customer base, and studying it is a complex task. While database segmentation filters your data, in order to study the customer behavior you need to move a step ahead with Behavioral Clustering.

Behavioral clustering is basically a clustered approach that uses various areas and database of Indian companies to collect customer data and help you understand their online behavior better. The point is when does behavioral clustering become important to your business? The answer is- when you want to retain an existing customer base and target new prospects based upon the data details of previous ones.

In order to optimize the clustered approach, it is important that you meet the below aspects:

  1. The database collected through the best database providers in India that you are targeting should be measurable.

  2. Each market segment data should be distinguishable.

  3. The size of the database should be decided.

  4. The number of clusters should also be decided as too many clusters can make the analysis tedious and time-consuming.

  5. All marketing segments should be accessible.

 

There are two methods of executing behavioral clustering:

Top-down Clustering

The top-down method of behavioral clustering focuses on demographics to focus on customer data. It uses attributes like location, income-groups, product sales, etc. 

This method is used when a business targets customer characteristics to analyze data. However, it does not focus on customer trends and preferences.

 

Bottom-up Clustering

The bottom-up method is used to analyze the demand-level data with respect to the products. This is a long-term strategic planning way to target sales.

Based on the business requirements, you can also use both methods in conjunction to create better behavior clusters. After creating the clusters, you can extract useful insights and information to profile up your refined results and target new customers.

Behavioral clustering is actually a broader process that involves the implementation of various techniques and algorithms. The core objective is to make the analysis process automated and faster. For businesses that use both B2B and B2C marketing, it has proved to be really helpful as the volume of data becomes large to be segmented manually.

In this current scenario of fast-changing customer expectations and frequent price fluctuations in similar product categories, behavioral clustering reap its benefits with a tailored assessment.

marketing marketing segments database marketing campaigns database provider companies in India database of Indian companies database providers in India