KnowledgeBase Marketing Introduces GENERATIONS Clustering System at DMA07

GENERATIONS System Takes Consumer Clustering to an Individual Level

Richardson, Texas, Oct. 15, 2007 – KnowledgeBase Marketing announces the launch of its new individual-level GENERATIONS^SM consumer clustering system. The Generations system segments the U.S. population into five age-based groups and 52 clusters based on purchasing power and behavior, lifestyle choices, life stage, demographic attributes, socioeconomic status and attitudes. These major groups are:

• Seniors  (DOB 1945 & earlier)
• Leading Boomers (DOB 1946 – 1955)
• Trailing Boomers  (DOB 1956 – 1964)
• Gen Xers   (DOB 1965 – 1974)
• Millennials   (DOB  1975 – 1990)

Individual-level clustering provides greater precision

What differentiates GENERATIONS from most other segmentation systems is that it is grounded in individual-level data, not solely neighborhood or household-level data. If you consider your own household or those in your neighborhood, it is readily apparent that there are often distinct differences in the behavior, interests and choices of individual household members. Most segmentation systems cannot make this distinction. GENERATIONS allows marketers to reach specific individuals within a household with offers and messages targeted appropriately to them. This is particularly advantageous when trying to reach different prospect profiles whose household or neighborhood traits do not match their individual characteristics, such as multiple generations living under the same roof.  Adult children still living at home buy very different products than their parents.

Better differentiation within generational groups improves targeting

The GENERATIONS clustering system also reveals what we know intuitively — that the stereotypes of age-group labels are simplistic and often inaccurate. Each generation is as diverse and complex as the rest of the population in demographics, affluence, lifestyle and spending habits. By analyzing U.S. consumers using individual traits and characteristics, GENERATIONS also unveils the many distinct niches within an age group. While most demographic and geo-based segmentation systems cross over age groups, the GENERATIONS system is uniquely focused on the distinctions within specific age ranges, resulting in a more accurate profile of and better differentiation between segments. This granulation offers marketers a better way to target, communicate and manage specific audiences.

The major groups within the GENERATIONS cluster schema are:

The distinction between clusters within a generation allows for more effective list selection. Considering all Gen Xers as one homogenous group will not yield the best response. Being able to differentiate the 42-year old suburbanite struggling to support a large family from the 33-year old living the good life in a posh city condo will result in a more effective campaign.

AmeriLINK® data is key to the power of Generations clustering

The KnowledgeBase Marketing analytical team relied on the accuracy and scope of coverage in its AmeriLINK® National Consumer Database to develop the Generations clustering system. AmeriLINK data, compiled over 30 years from public, proprietary and self-reported sources, provides marketing information on 230 million consumers. AmeriLINK is especially rich in age data, a key element in building Generations clusters. Thousands of variables across a broad spectrum of characteristics were considered in the analysis, then using a sophisticated data reduction technique, the analysts identified the most important combinations of attributes that define each cluster’s population.

First profiling with Generations yields best results

The GENERATIONS clustering system is available for profiling, list rental, enhancement or licensed install. It is a versatile stratification tool providing marketers insight into existing customers as well as a rich resource for finding new, highly targeted prospects. KnowledgeBase Marketing recommends first using Generations to segment a customer database for greater insight and then ranking clusters from high to low performing. Armed with this business intelligence, the marketer can then select look-alike prospects and suppress names in low performing clusters. This results in a more effective market spend by establishing an iterative process, continually fine-tuning and tailoring campaigns to yield the optimum response and conversion, while controlling expenses.

“Our clients who have tested Generations are finding that the insight gained into their customer data is invaluable, “ says Maria Herlihy, KnowledgeBase Marketing’s senior vice president of Analytics. “They are using it not only for evaluating their campaigns, but they are also applying that intelligence to influence product development, consumer research and creative decisions.”

About KnowledgeBase Marketing

KnowledgeBase Marketing provides information marketing and award-winning database marketing solutions that enable companies to acquire and manage profitable customer relationships across traditional and Web-based contact points. Using best-in-class tools and methodologies, we develop data-driven and profit-focused marketing strategies and solutions that empower our clients to make informed business decisions. Over 30 years, we have created a comprehensive world-class suite of marketing solutions that includes consumer and business data, advanced data processing, database marketing, analytics and strategic consulting. KnowledgeBase Marketing’s parent company, Wunderman, is a division of Young & Rubicam Brands and a member of the WPP Group. For more information, please visit www.knowledgebasemarketing.com.