The task of classifying and locating customers is a never-ending one. Brand decision makers are generally familiar with mapping products that are combined with imported variables from different databases, with demographics being among the most popular. But many South African marketers and advertisers are only just beginning to take advantage of the benefits of geodemographic segmentation following the introduction into the market of Knowledge Factory's People Insight Tool.

Geodemographic segmentation is the efficient clustering of geographic areas based on census and other statistics taken from imported databases containing information such as property ownership, lifestyle and consumer behaviour. People Insight Tool takes clustered geodemographic segmentation and enriches it with clients' internal data sets, resulting in customisation according to the specific information that marketers are looking for.

"This empowers marketing and advertising agencies by enabling them to clearly demonstrate return on investment to their clients," says Tessa Moore, strategy and business consultant at Knowledge Factory. "Because their campaigns and other initiatives can be targeted and measured, it lowers the total cost of marketing and ends up making more budget available for more targeted reach through more selective media."

"What it enables," continues Moore, "is a detailed picture - and hence a more in-depth understanding of customers and markets. People Insight Tool gives marketers far greater knowledge of customers' location and behaviour than traditional living standards measurements (LSMs), which can be really narrow in scope."

Moore points to the Johannesburg suburbs of Blairgowrie and Craighall Park as an example. "According to standard LSM classification, these two suburbs fall into the same category. But the reality is that while people living in these areas may belong to the same income bracket, their needs, wants and aspirations are very different. The more conservative family-oriented Blairgowrie is inhabited by what we have named 'The Settled Suburban' set, while Craighall Park belongs to the trendier 'Cheese and Wine' set that generally have a greater disposable income because they tend to have double incomes and no dependants."

What this shows is that although the two areas Moore refers to belong to the upper middle class grouping, they fall into very different clusters.

Knowledge Factory has identified 10 groups which it has segmented into a further 38 clusters - areas grouped together based on their similar characteristics, and on whether they are metropolitan or town dwellers. Thus, the highest earning Silver Spoons group is broken down into the Upper Crust, Pearls Strings, Cheese and Wine, Fashion Café Society and the town-dwelling Big Fish clusters. The groupings were determined in-house by Knowledge Factory with the assistance of consulting statisticians, Merle Werbeloff and Dr Mike Muller from the Witwatersrand Business School.

For more information contact Tessa Moore, Knowledge Factory, 011 445 8100, tessam@knowledgefactory.co.za