What clustering means in marketing?

Clustering is a descriptive technique based on data from your point of sale that consists of grouping items into groups with similar characteristics.

One of its main functionalities is the capacity that it offers to retailers to segment their customers into homogeneous groups that allow them to create behavioural patterns and predictive behavioural models.

Ladorian IDS is specialist in the implementation of smart communication channels and Smart Digital Signage at points of sale that will help you to improve your business brand and your sales through the segmentation and clustering of your consumers.

Throughout our article we explain how we can achieve this!

What is clustering in Marketing?

Clustering is a set of techniques used to analyse Big Data in order to form groups, clusters or segments of data, widely used for marketing and commercial purposes (customer segmentation).

Clustering techniques segment our public or consumers into closed and homogeneous groups based on a set of elements with different characteristics or properties, but which share certain similarities.

How can we apply clustering techniques in our marketing strategy?

The most widespread use of clustering is in market segmentation tasks, where the aim is to group a customer database into different segments or groups.

These groups are characterised by certain properties that help to describe who they are, how they behave and what their interests are.

In this way we can offer personalised products and services tailored to their tastes and interests based on aspects such as:

  • The quality of the data.
  • The total number of groups to be calculated.
  • The differences between each group and the size of the cluster.
  • The hierarchy when defining these groups.

Each person or client should belong to a single cluster and these should be composed of people who are as similar as possible, but as different as possible from the rest of the clusters.

The implementation of clusters in retailers’ marketing and communication strategies leaves no doubt as to their effectiveness.

Combined with innovative techniques such as Machine Learning, Artificial Intelligence or Business Intelligence, they allow us to adapt to the changes and trends of consumers, anticipating their demands and needs.

We create smart communication to improve your sales

In Ladorian IDS we are fully aware that the increase in retail sales is given by the personalization of communication in advertising campaigns.

To achieve this we offer you to lead the process of digitization of your business to develop an intelligent communication strategy at your point of sale to ensure increased sales in your commercial space.

Our analysis model based on clustering focuses on the following aspects:

  • Socio-demographic and economic profile (gender, age, income).
  • Geographical location: city, suburbs, etc…
  • Variant variables (weather, events, etc.).
  • Time: hour, day, and month,
  • Stock
  • In-store profile

Through our software we ensure the intelligent distribution of personalised content on a wide variety of broadcasting devices: TV, mobile phones, digital tags, tickets, public address systems, etc…

By means of prime time algorithms that use heterogeneous data sources and the integration of machine learning mechanisms, we can recommend the optimal content and broadcasting times for each client in different types of businesses.

The wealth of data handled by Ladorian IDS identifies the best times to offer each product, depending on stock, sales, hours or even outside temperature.

Data-driven marketing and communication at the point of sale

The Big Data processing or Data Science process, consists of several sub-processes:

  • Acquire offline data from the business based on internal business data.
  • Exploring and processing the data to provide valuable information.
  • Select the appropriate techniques (regression, classification, clustering, association…) that allow us to obtain valuable information and build the analytical model. Build the appropriate reports and visualisations to transmit the information obtained in the analysis process (reporting).
  • Analyse and measure the marketing and communication campaigns of the clustering techniques in order to act based on the results obtained.

The data is there and you just need to get it and interpret it to use it for the benefit of your business and Ladorian IDS helps you to achieve it.

Ask for advice without compromise and turn your business data into the main asset of your point of sale to improve sales and your brand identity.

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