Segmenation and customer profiling and wallet share Essay

Segmenation and customer profiling and wallet share - Essay Example Customer profiling and analytics is an advanced database management system with works with customer segmentation and data mining applications. With customer profiling tools, customer information such as who are they, places where they reside and work, distance travelled to purchase products, their differences by products and regions and so on (Bhalla, 2009). With this information, it is possible to identify areas where customers are in higher intensity, understand viability of the locations and then develop campaigns that focus on the target customers (Drupal CRM, 2011). Wallet share measures the end result of the CRM implementation. It refers to the percentage or share that the customer spends on purchasing a particular product. It can also refer to the amount of revenue that a firm generates from a specific customer segment. In effect, the wallet share shows if the amount spent on maintaining customer relations and on advertisements are effective enough to make the customer buy the organizations products. In the case, the CRM system tracks the billing to the customer segment and after hundreds of transactions are tracked, a decision is taken about the share of wallet. Wallet share information can then be used in changing the marketing plan, in targeting the proper customer segment and so on (Croteau, 2009). These systems are used in modern database marketing and in