Customer profiling for targeted advertising
December 19, 2024
Context
A local pet food delivery company is seeking to identify its key customer segments to reduce spendings in its advertising efforts and local product deliveries.
Challenge
Since approximately 55% of households own a cat or dog, how can we precisely determine which of these households would be interested in a delivery service and would benefit the most from it?
Innovation
Indicia conducted a customer analysis to identify the main segments that have used the service over the past three years, focusing on recurrence. Three key segments emerged: owners of large breed dogs, busy large families, and elderly owners of small animals. The segments were geolocated using cadastral data on land size (to accommodate large dog breeds), census data on household size (to identify large families), and population age data (to identify elderly individuals). This information was then cross-referenced with pet ownership data to pinpoint the optimal neighborhoods for targeted postal and digital advertising, as well as to create more efficient delivery routes.
Results
Thanks to the targeted advertising efforts, the company was able to reduce its annual marketing budget by 35%, while increasing its revenues by 7%.
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