NatWest - Segmentation

Using data-derived insight and customer segmentation to discover the impact of customer lifestage 

The Challenge
NatWest wanted to gain in-depth insight into the influence of customer lifestage on its financial services markets.
The challenge lay in developing  a behavioural segmentation solution with appropriate descriptive and diagnostic outputs, in order to understand the key factors at play in each of the Natwest/RBS product markets.

The Solution
The first step was to segment the customer base and behavioural attributes were used to differentiate the groups. 
To deal with the significant influence of lifestyle in financial services markets, the segmentation was carried out within pre-determined age band groups: data clustering techniques were used to develop a set of individual pen-portraits for the important age bands of 33-45 and 45-54 years.
Finally, Response One carried out a factor analysis in order to identify whether data could be grouped into obvious clusters of variables, such as ‘savings factor’ and ‘loans factor’.

The Results
The sophisticated analysis techniques employed here provided a clear and accurate picture of the Natwest/RBS customer base, and 14 segments were illustrated with highly descriptive pen portraits.
In addition, an effective scoring code was delivered with which to accurately score the database.
Together, these provided a practical means of conveying the typical characteristics and behaviours of customers within the target age groups which would facilitate improved targeting and efficiency of Natwest/RBS’s direct marketing campaigns.