Know thy customer. It's marketing and product development 101. In order to fully meet the needs of the consumers in your service area, you must first have a thorough and detailed understanding of who they are. Only then will you be equipped to grow the appropriate services lines to accurately meet their needs. And only then will you be able to target your marketing outreach to let the right consumers know about the services you have developed just for them.
Stratasan, through the use of Esri's Tapestry Segmentation, is positioned to equip your hospital and health system for strategic growth and targeted consumer outreach. This post, and the related post in the series to come, will pull back the curtain, explaining how and why we are equipped to walk your team through the process of getting to know your customer like never before.
This first post of the series provides an introduction as to what Esri’s Tapestry Segmentation Dataset is comprised of and how Stratasan uses it. This will differ from past posts about Tapestry by providing a deeper dive into the dataset. Additionally, to illustrate the various levels of granularity within the Tapestry data, we'll look at a couple of specific LifeModes and the Segments that fall within it.
As a first step, let’s dive in and examine exactly what is Esri's Tapestry Segmentation.
An Introduction to Esri's Tapestry Segmentation
Esri’s Tapestry is a market segmentation system designed to identify consumer markets in the United States. It incorporates the effects of growth and decline over the last decade on established consumer markets, as well as the emergence of new markets populated by the Millennials and immigrants. The overall result is a reflection of the increasing diversity among American consumers.
Tapestry was designed specifically to understand customers' lifestyle choices - what they buy and how they spend their free time. This information gives Stratasan, and our clients, insights that help identify facility’s patient types, optimal sites for hospitals, physician offices, FSERS, and urgent care locations. We use the Tapestry Segmentation dataset to help our clients get higher response rates, avoid less profitable growth opportunities, and invest their resources in the best ways possible.
To better understand how Tapestry works, you first must understand how it is formatted. Throughout the US, areas are divided into 67 distinctive segments based on their socioeconomic and demographic composition. These segments can be grouped up into 14 LifeMode Groups and 6 Urbanization Groups. Stratasan runs the Tapestry analyses on the 67 segments. Depending on the audience, their technical understanding of the data, and what they are looking to accomplish with the results; we can group the segments by 14 LifeModes or the 6 Urban groupings to generalize the results.
This poster was created by Esri to easily show how the Tapestry data is organized and how it groups consumers into LifeModes and Urbanization Groups:
To see these various segments and their descriptions in more detail, check out Esri’s Tapestry Website.
To illustrate the various levels of granularity within the Tapestry data, we'll now break down the Family Landscapes LifeMode. Family Landscapes has three Segments that fall within it, which we will delve into as well.
LifeMode 4 - Family Landscapes
The following is an overview of this LifeMode:
- Successful young families in their first homes
- Non-diverse, prosperous married-couple families, residing in suburban or semi-rural areas with a low vacancy rate (second lowest)
- Homeowners (80%) with mortgages (second highest %), living in newer single-family homes, with a median home value slightly higher than the U.S.
- Two workers in the family, contributing to the second highest labor force participation rate, as well as low unemployment
- Do-it-yourselfers, who work on home improvement projects, as well as their lawns and gardens
- Sports enthusiasts, typically owning newer sedans or SUVs, dogs, and savings accounts/plans, comfortable with the latest technology
- Eat out frequently at fast food or family restaurants to accommodate their busy lifestyle
- Especially enjoy bowling, swimming, playing golf, playing video games, watching movies rented via Redbox, and taking trips to a zoo or theme park
The three Tapestry Segments that make up LifeMode 4 are comprised of young white families living in their first homes with both spouses in the workplace. We can break out this group out by utilizing the three Tapestry Segments that make up the Family Landscapes LifeMode:
- 4A - Soccer Moms
- 4B - Home Improvement
- 4C - Middleburg
Tapestry Segment 4A - Soccer Moms
Esri describes Soccer Moms as “An affluent, family-oriented market with a country flavor. Residents are partial to new housing away from the bustle of the city but close enough to commute to professional job centers. Life in this suburban wilderness offsets the hectic pace of two working parents with growing children. They favor time-saving devices, like banking online or housekeeping services, and family-oriented pursuits.” Furthermore, those in the Soccer Moms segment:
- Prefer the suburban periphery of metropolitan areas.
- Predominantly, single family homes are in newer neighborhoods, 36% built in the 1990s (Index 253), 31% built since 2000.
- Owner-occupied homes have a high rate of mortgages at 74% (Index 163), and low rate vacancy at 5%.
- Median home value is $226,000.
- Most households are married couples with children; average household size is 2.96.
- Most households have 2 or 3 vehicles; long travel time to work including a disproportionate number commuting from a different county (Index 133).
For each segment, Esri created a four-page PDF That includes a description/summary slide, a demographic breakout slide (which you can see below), a market profile slide, and a map showing the concentration of the specific tapestry segment across the United States.
Tapestry Segment 4B - Home Improvement
Esri breaks out Home Improvement as “Married-couple families occupy well over half of these suburban households. Most Home Improvement residences are single-family homes that are owner occupied, with only one-fifth of the households occupied by renters. Education and diversity levels are similar to the US as a whole. These families spend a lot of time on the go and therefore tend to eat out regularly. When at home, weekends are consumed with home improvement and remodeling projects.”
The description/summary slide includes a lot of useful information including the summary information in the paragraph directly above:
Tapestry Segment 4C - Middleburg
Esri states: “Middleburg neighborhoods transformed from the easy pace of country living to semi-rural subdivisions in the last decade when the housing boom reached out. Residents are conservative, family-oriented consumers. Still more country than rock and roll, they are thrifty but willing to carry some debt and are already investing in their futures. They rely on their smartphones and mobile devices to stay in touch and pride themselves on their expertise. They prefer to buy American and travel in the US. This market is younger but growing in size and assets.” Those in this Tapestry also:
- Live within metropolitan areas.
- Neighborhoods changed rapidly in the previous decade with the addition of new single-family homes.
- Include a number of mobile homes (Index 152).
- Affordable housing, a median value of $158,000 (Index 89) with a low vacancy rate.
- Young couples, many with children; average household size is 2.73.
The market profile slide for Middleburg looks like:
Throughout this series on Tapestry data, we will break out the various Tapestry Segments by LifeMode and uncover what the population that falls into each segments do, where they live, and what drives them. With a more in-depth understanding of each segment, you will be better equipped to serve your existing patient populations and expand your reach within your markets.
Since Tapestry Segmentation is so diverse and can be quite different depending on what part of the country you are in, we will be breaking out the segments within the many LifeModes over the course of this series. By the end of it, you will be able to identify and interpret the tapestry segments in your market and help coordinate your strategy and/or marketing outreach accordingly.
Article by Jason Haley, GIS Manager for Stratasan