TRC

Market Segmentation

In one of our market segmentation studies, our client for a personal lines auto insurance market segmentation was reevaluating its distribution strategies, particularly to determine whether it should add direct and/or payroll deduction marketing to its agency distribution. To segment the market, we applied the Self-Organizing Map market segmentation technique to a data set including survey data and appended geo-demographic and credit data. We were able to estimate the potential profitability of the different segments and identify distribution channels, marketing themes, and product features appropriate for each segment.