Balancing the segmentation and behavioral principles towards acquiring customer insight. Case of household management services and products.

Abstract

Digitalization and decentralization within the energy market provide consumers with new opportunities. The trend consequently requires the transformation of energy suppliers’ portfolios beyond energy supply and towards overall household management within business to the customer market. This segment is especially challenging due to its size and variability in habits or behavior related to household management, which includes not only energy supplies but also insurance issues, appliances operations, and service. This study examines, customers’ behavior and their responses to offers of products and services related to household management based on an intrapersonal factor of “age” as an easily accessible and precise type of data about consumers. Dataset examined contains data of customers, who were addressed repeatedly during 24 months from 2019 until 2020 by e-mail offers from a supplier of products and services related to household management. Our results show, that even the age needs to be combined with other factors influencing the decision-making process, it involves the potential to provide vendors insights to improve their targeting and increase the effectiveness in communication with customers.