How our Products Work: an Overview of Financial Affluence Segmentation


At Compuscan, we are passionate about optimising the effectiveness of customer engagement. It remains a significant strategic focus for us, both in terms of delivering products and communicating with customers, as well as the return on investment from customer engagement.

It is integral to develop an understanding of who your customers are, not just based on their behaviour or take-up of your products and services, but in order to gain a more holistic view of: their income bracket, their age, where they live, which credit products they use, and what they spend their money on. Compuscan’s Financial Affluence Segmentation (FAS) was designed to assist with customer engagement optimisation, by providing a comprehensive description of individuals and their behaviour.

FAS

FAS equips organisations with an understanding of the financial behaviour and sophistication of their customers. Financial sophistication refers to the wealth of the customer or household, the credit products they use and how they utilise them, their lifestyle relative to their age, their entrepreneurial spirit, and their ability to service their commitments.

Due to the fact that the personal characteristics of customers differ widely from customer to customer and from household to household, FAS has analysed a complex mix of customer data to create a customer classification system which accurately describes the South African customers’ level of affluence and financial utilisation.

The FAS classification system delivers six broad segments indicating wealth, with 40 more granular and descriptive subpopulations or groups. This segmentation and description of customers enables businesses to create profitable engagement, thereby building a loyal and profitable customer base.

The six broad segments are produced by analysing over 140 variables, including profession, income class, marital status, household make-up, gender, age, race, property value, geographic location, preferred communications channels, retail store cards, account/credit/loan/vehicle finance status, and insurance policies.

Each of the 40 subpopulation groups is accompanied by a detailed description, including details about their life style, life stage, level of affluence, typical financial product holdings, attitudes towards credit and investments, and demographic characteristics.

Key features of Financial Affluence Segmentation:

  • Understand and segment your customers and the entire consumer population of South Africa.
  • Understand the financial affluence, behaviour and sophistication of all adults and households in South Africa
  • Understand the financial needs and behavioural drivers of South African consumers
  • Geo-locate profitable customer segments and develop significantly smarter location based strategies.
  • Create profitable CRM strategies based on relevant consumer insights

Key benefits of Financial Affluence Segmentation:

  • A detailed classification system, allowing you to build rapid insights into your customers.
  • The segmentation of your customer base, which assists in conducting customer needs analyses.
  • Ability to identify profitable consumer segments for your business to retain and grow.
  • The use of consumer insights to improve your acquisition and retention strategies.
  • The ability to create more relevant offers and marketing messages.
  • Reduce marketing wastage by only targeting the right consumers through the right direct and online channels.
  • Set KPIs, measure campaign and marketing channel effectiveness.
  • Enhance targeting capabilities for location based engagements
  • Build profitable and engaging customer relationships through more relevant and effective data driven engagements.

Anton Grützmacher is the Product Owner of Financial Affluence Segmentation. Anton is well-known for his ability to create strong relationships and for engineering effective solutions for his clients to overcome challenges and achieve better results. For more information on Financial Affluence Segmentation, contact Anton at agrutzmacher@compuscan.co.za.