Hansa’s meaningful and actionable tool used for segmentation that goes beyond Need, Demographic, Psychographic and Behavioural segmentation
- Uses LCM (Latent Class Modelling) as its analysis construct to segment consumers. This uses a sophisticated iterative modeling technique, called the Expectation Maximization (EM) algorithm, to specify the segments within the data.
- LCM can accommodate a variety of variable types, from categorical to continuous and this flexibility enables solutions that can be based on a range of drivers.
- The model allows for statistical testing and retesting of the model fit to assess the quality of a segmentation scheme, which is not possible with factor/cluster approaches.