Part VI: Customer profiling and segmentation
with the ESRI Business Analyst Desktop
Segmentation Module
Getting to Know ESRI Business Analyst
Fred L. Miller, PhD
Murray State University
Presentation topics
This presentation will cover:
 The decision scenario for Living in the Green Lane
 Relevant business GIS tools and tasks
 Chapter 9: Creating customer profiles
 Geocode customer addresses and attach demographic and segment data
to them
 Develop profiles from customer lists, layers, geographic areas, and
survey data
 Develop reports which summarize customer profile characteristics
 Assign customers to target groups based on sales history
Presentation topics (cont.)
 Chapter 10: Segmentation analysis for enterprise
expansion
 Assign segments to Core, Developmental, and Niche target groups based on their
composition and/or sales volume
 Create reports using Market Potential Indexes to determine target group behaviors, values,
lifestyles, purchasing patterns, and media exposure
 Assess the potential sales volume of geographic areas based on their similarity with
attractive customer profiles
 Assess the ability of attractive geographic areas to support new company-owned and/or
franchised stores
 Create customized formal Segmentation Studies to support research conclusions and
recommendations
 Evaluation of ROI for business GIS analysis
 Business GIS learning goals and skills
LITGL decision scenario
With their expansion plans in the Twin Cities area now
complete and their green lifestyle center concept in
place, Janice and Steven wish to:
 Create comprehensive profiles of current customers
and their purchasing patterns
 Identify high-value customers within the existing
customer base and establish target groups
 Use target group profiles to increase sales by
 penetrating current markets more thoroughly
 identifying favorable expansion opportunities in other parts
of the United States
 Produce a formal Segmentation Study to document
and support these growth plans
Relevant business GIS tools and tasks
 Mapping customer location with geocoding
 Attaching sales, demographic, and lifestyle data to
customer records
 Generating profiles of high-value customers
 Identifying local concentrations of high-value
customers who are not yet served
 Identifying potential markets across the country that
match the high-value customer profile
 Estimating the sales potential of potential markets and
identify specific attractive store locations within them
 Preparing comprehensive segmentation studies to
support business decision making
Chapter 9: Creating customer profiles
In this chapter, you will perform the following Business
Analyst Desktop tasks:
 Geocode customer addresses and attach demographic and
segment data to them
 Develop profiles from customer lists, layers, geographic areas,
and survey data
 Develop reports which summarize customer profile
characteristics
 Assign customers to target groups based on sales history
Geocode and profile customers with Address Coder
Create map, reports, and charts
of customer profile data
Assign customers to target groups
based on sales history
Chapter 10: Segmentation analysis
for enterprise expansion
In this chapter, you will perform the following Business
Analyst Desktop tasks:
 Assign segments to Core, Developmental, and Niche target groups based on




their composition and/or sales volume
Create reports using Market Potential Indexes to determine target group
behaviors, values, lifestyles, purchasing patterns, and media exposure
Assess the potential sales volume of geographic areas based on their
similarity with attractive customer profiles
Assess the ability of attractive geographic areas to support new companyowned and/or franchised stores
Create customized formal Segmentation Studies to support research
conclusions and recommendations
Assign Core, Development and Niche Segments and
Generate Market Area and Gap Analysis Map and Report
Assess alternative markets for expansion and
evaluate opportunities for company-owned and franchised Stores
Create comprehensive segmentation study
to support plans for sales growth
Business GIS learning goals and skills
In Part VI you will learn to use Business Analyst Desktop
to:
 Geocode customer addresses and attach demographic and segment data to them
 Develop profiles from customer lists, layers, geographic areas, and survey data
 Develop reports which summarize customer profile characteristics
 Assign customers to target groups based on sales history
 Assign segments to Core, Developmental and Niche target groups based on their




composition and/or sales volume
Create reports using Market Potential Indexes to determine target group behaviors,
values, lifestyles, purchasing patterns, and media exposure
Assess the potential sales volume of geographic areas based on their similarity with
attractive customer profiles
Assess the ability of attractive geographic areas to support new company-owned and/or
franchised stores
Create customized formal Segmentation Studies to support research conclusions and
recommendations
Evaluation of ROI for business GIS analysis
The costs of this Business Analyst application are:
 A Business Analyst Desktop and Segmentation Module
 The time of managers and business GIS analyst
The benefits of this Business Analyst application are:
 Increased revenue from higher sales at existing stores
 Optimized projected sales from stores in new geographic areas
The estimated incremental revenues are:
 About $190,000 in increased purchases in existing stores
 About $6 million difference in projected revenue between selected
region and alternatives
Part VI: Customer profiling and segmentation
with the ESRI Business Analyst Desktop
Segmentation Module
Getting to Know ESRI Business Analyst
Fred L. Miller, PhD
Murray State University