The impact of low birth rates towards the life stage segmentation model in CRM
The Life Stage segmentation model has been widely used in the area of analytical CRM and target marketing. The model is based on the use of customer demographics data and classifies a business organization's customer database into Life stage segments. Segment needs and product gap analysis will then be carried out to determine cross selling and up selling opportunities. The size and spending power of each defined Life stage segment will be compared to help formulate marketing strategies. However if the pattern of the Life stage segments changes, modifications to the marketing strategy will be needed in order to ensure the largest segment as well as the segment with the strongest spending power is targeted. With continually declining birth rates (particular in Asia), changes in the size and spending pattern of Life stage segments are observed. New marketing strategies are required to target potential segments. This paper investigates the impact of low birth rates towards the Life stage segmentation model. A research study has been conducted to identify the key changes in Life stage segments covering the four key Asian markets including Hong Kong, Singapore, Taiwan and Shanghai.
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