Is Your Customer Really Who You Think They Are?

Over the years, RetailUnion has seen countless brands make an easily avoidable mistake. Retailers have a general idea of who their customer is based on the type of people that interact with them in-store or online, and they use this anecdotal evidence to drive their entire sales, marketing, and real estate strategies. 

They don’t always know that they could be getting a lot more granular in their understanding of their customer: who they are, where they are, and the best place to reach them, on- or off-line. Sometimes brands hire an agency to hone in on their target audience - but much more extensive research could be done to define who they are based on data that’s readily available. 

The first place retailers could be looking? Customer addresses. Shipping addresses can be tied to customer segmentation data, like Experian Mosaic, STI Landscape, and Tapestry Segmentation. When RetailUnion works with brands to conduct customer segmentation analyses, brands are often shocked to find who their customer really is—especially when the person buying from the brand is different from the person using the product (for example, when parents are actually buying for their kids).

Here are some other trends that we’ve found when we’ve drilled deep on customer segmentation based on shipping addresses. 

  1. Your customer might vary depending on their city.

    One market may have completely different customers than another. Analyzing shipping addresses by city could help you figure out the best way to reach each market’s unique customer. 
  2. Your customer will grow and change as your company grows and changes.

    Top customer segments shift over time. Data analysis should be built into your company’s approach, so that you’re aware of these trends as they emerge. 
  3. You might share customer segments with other brands - which could drive your co-tenancy strategy.

    A lot of direct-to-consumer brands today share customer segment groups. Identifying this overlap could make it easier to target retail that places you in proximity to these brands. 
  4. Cell phone data can unlock even more insights.

    Understanding Mass Mobile Data (or MMD) can help clarify how your customer typically shops. The other stores they visit and the things they do before they buy can also help you determine where your own store should go.

The data is, of course, just a part of the process to understand your customer more deeply. Interested in learning more about how to craft a data-driven growth and expansion strategy? Reach out - we’d be happy to chat.