What is Chomonicx?
- Chomonicx2.0 is the most advanced geo-demographic segmentation system currently available in Japan.
- Chomonicx was built in 2004 by Acxiom Corporation based on the models and experience accumulated over 30 years in the USA and in Europe.
- Chomonicx2.0 segments the Japanese population into 38 clusters built from hundreds of geo-demographic variables describing local populations, housing and economic characteristics including inferred consumption data as well as income models.
- Chomonicx2.0 is optimized to recognize differences between 200,000 cho-chomoku covering all of Japan. The system was extensively tested and proved to be stable, accurate, homogenous and reliable.
- Most important, Chomonicx2.0 is affordable and has proved excellent value for money to the companies already using it.
What are the main characteristics of Chomonicx2.0?
- Chomonicx2.0 is a unique and stand alone code, built from hundreds of variables including Census data, which can be affixed to databases at the cho-chomoku level. (There are 200,000 cho-chomoku in Japan with an average of 240 households.)
- Chomonicx2.0 has 12 main dimensions:
- Wealth Indicator
- Family Size
- Family Composition
- Presence of Children
- Home Ownership
- Length of Residence
- Distance from Railroad Station
- Price of Land
- The 38 clusters of Chomonicx2.0 were defined using, multiple correlation factor and cluster analysis to identify meaningful correlations between the variables.
- The strength of Chomonicx2.0 becomes obvious when combined with other data sources, client transaction data for example, as it provides a unique and homogeneous capability to differentiate among millions of otherwise similar patterns and find what matters and what does not.
The above table shows the 12 main Social Groups identified in Japan which can further be subdivided into the 38 Chomonicx Clusters.
What can be coded with Chomonicx2.0?
- Any database which can be linked to an address or more generally to a chome can be code with Chomonicx2.0.
- It includes:
- Bank Customer Files
- Insurance Policies
- Investment Portfolios
- Automobiles Registrations
- Warranty Cards
- Real Estate Sales
- Coupon Redemption
- Newspaper Subscribers
- Billing Files
- Sales Promotions
- Direct Mail & Mail Order
- Club Membership
How can Chomonicx2.0 be used?
a) CRM (Customer Relationship Management)
- Chomonicx2.0 give the possibility to reduce communication costs with smaller, pre-selected lists for up-sale, cross-sale and to limit churning.
- Communication costs can also be better adjusted to customer potential value by sending expensive material or directing more complex messages only to the most attractive clients.
- Offers can be adjusted to target specific groups and to the client needs and possibilities according to lifestage, affluence and consumption patterns.
b) Adjustment to Local Market Needs
- It is possible with Chomonicx2.0 to preselect the most attractive areas with the highest potential for marketing action.
- Advertising campaigns can be adjusted to the local market potential either through launching promotions in the most attractive areas or tailoring motivators to the local audience characteristics.
- Branch localization is also made easier by Chomonicx2.0 thanks to a better understanding of local potential and size.
c) New Clients Acquisition
- Advertising can be addressed only to the segments which are the most likely to respond, adopt the new product or become customers with high value.
- Offers can be adjusted to new customer needs and possibilities even without any specific information about these customers.
Chomonicx2.0 helps you look at your marketing differently and efficiently
Q1 − In which market segment do I have untapped opportunities?
Q2 − How do I find prospects that most closely look like my most profitable customers?
Q3 − Do my customers for product “A” look anything like my customers for product “B”?
Q4 − Which of my targets are under the most competitive pressure?
Q5 − Am I losing or gaining market share of my core targets?
Q6 − How can I bundle my products together in a way that will be valuable to my customers for up-selling or cross-selling?
Chomonicx2.0 answers your critical marketing questions
- You can calculate penetration segment by segment.
- Compare with the general population
- Look at product penetration
- Monitor area penetration according to segment specificity
- Measure precisely the effects of a promotion campaign on your target
- Chomonicx2.0 justifies itself by helping you reduce your budget for marketing activities and advertizing. Thanks to a better understanding of your customers and their localization, you can put numbers on marketing and subtract them from your advertising costs by being more precise and focused on your targets.
What about privacy?
- Chomonicx2.0 aggregates data at the chome level to give marketers geo-demographic information for marketing purposes.
- It is not based on personal information and consequently does not raise
any concern about privacy.
- What makes the strength of Chomonicx2.0, its statistical approach of chome which gives it precision (at that level) but also stability over time (local characteristics change very slowly over the years) also guaranty that Chomonicx2.0 is not information about individuals or households. Chomonicx2.0 codes areas, not people.