Know Your Customer Like Never Before, Part 3: Tapestry Segmentation and Wealthy Urban and Suburban Populations

Know Your Customer Like Never Before, Part 3: Tapestry Segmentation and Wealthy Urban and Suburban Populations

As learned in the first and second installments of this blog series, it can be quite useful to use Esri's Tapestry Segmentation to target specific populations that your hospital, system, or physicians serve. Tapestry Segmentation was designed specifically to understand your customer’s 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, focus on the most profitable growth opportunities, and invest their resources in the best ways possible.

Wealth in America

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 service lines to accurately meet their needs. With Tapestry, the process of understanding the needs of your customer is a lot easier. Additionally, with this knowledge, you will then be able to target your marketing outreach to let the right consumers know about the services you have developed just for them.

This post will specifically highlight Tapestry Segments in LifeModes that include the wealthiest households in America's Urban and Suburban areas. These wealthy LifeModes include many different ages from those in their early 30's to households in their 50's and 60's. Although their ages can be quite different, it is their proximity to cities and their high median household incomes that make them quite similar. Furthermore, these households are much more likely to utilize Commercial Payor health insurance as well as seeking care proactively within their communities. By examining the makeups of these three wealthy LifeMode groups, we are able to better understand their behaviors, habits, who they are, and what they do. By taking a deeper dive into their specific Tapestry Segments, you will be able to target these populations in and around your markets.


Urbanization Summary Groups

To better understand what we are defining as Urban and Suburban, we will look at the three main urbanization groups that the Affluent Estates, Upscale Avenues, and Uptown Individuals LifeModes fall into:

Group 1 - Principal Urban Centers

  • Young, mobile, diverse populations living in the most densely populated neighborhoods of the largest cities (populations of 2.5 million or more)
  • Traits shared by more than 2.5 million people: crowding, high cost of living, and full access to urban amenities, including jobs
  • Youngest, most diverse populations among the Urbanization groups
  • Households are renter occupied by singles or roommates
  • The most challenging market for auto sales: half the commuters use public transportation, bicycles, or walk to work
  • Focus on style and image with liberal spending on apparel
  • Constantly connected, using the Internet for everything from finding jobs to finding dates

Group 2 - Urban Periphery

  • City life for starting families in neighborhoods that fringe major cities
  • The earliest suburbs, built before 1970, primarily single-family housing with some apartments
  • Young families with children, diverse population
  • Homeowners living closer to the city, with below average vacancy rates
  • Leisure focuses on the children (visits to theme parks or water parks), sports (soccer, basketball, baseball) and movies
  • Spending also emphasizes the children—clothing, toys, and baby products
  • Parents of small children favor family restaurants and fast food
  • Smartphones are popular, for social contacts, shopping, and music

Group 4 - Suburban Periphery

  • Urban expansion: affluence in the suburbs or city-by-commute
  • The most populous and fast-growing among Urbanization groups, Suburban Periphery includes one-third of the nation’s population
  • Commuters who value low-density living; but demand proximity to jobs, entertainment, and the amenities of an urban center
  • Well-educated, two-income households, accept long commute times to raise their children in these family-friendly neighborhoods. Many are heavily mortgaged in newly built, single-family homes
  • Older householders have either retired in place, downsized, or purchased a seasonal home
  • Suburbanites are the most affluent group, working hard to lead bright, fulfilled lives
  • Residents invest for their future, insure themselves against unforeseen circumstances, but also enjoy the fruits of their labor

 


Now that we have an understanding of what makes up the Urban and Suburban segments our three LifeModes, we can examine what makes up the segmentations within each of these LifeModes:

LifeMode 1 - Affluent Estates

The Affluent Estates LifeMode contains five individual tapestry segments: 1A - Top Tier, 1B - Professional Pride, 1C - Boomburbs, 1D - Savvy Suburbanites, and 1E - Exurbanites. These five segments are all in the Suburban Periphery. The median ages of these segments range from 33.6 to 50 years old.

Households that fall within the Affluent Estates LifeMode are generally:

  • Established wealth—educated, well-traveled married couples
  • Accustomed to "more": less than 10% of all households, with 20% of household income
  • Homeowners (almost 90%), with mortgages (70%)
  • Married couple families with children ranging from grade school to college
  • Expect quality; invest in time-saving services
  • Participate actively in their communities
  • Active in sports and enthusiastic travelers

To illustrate the above-listed information, let’s look at the summaries for the most pertinent segments that make up the Affluent Estates LifeMode:

Top Tier

Savvy Suburbanites

Exurbanites

 

 


LifeMode 2 - Upscale Avenues

The Upscale Avenues LifeMode contains four individual tapestry segments: 2A - Urban Chic, 2B - Pleasantville, 2C - Pacific Heights, and 2D - Enterprising Professionals. These four segments are all in the Urban Periphery and the Suburban Periphery. The median ages of these segments range from 34.9 to 42.7 years old.

Households that fall within the Upscale Avenues LifeMode generally:

  • Prosperous married couples living in older suburban enclaves
  • Ambitious and hard-working
  • Homeowners (70%) prefer denser, more urban settings with older homes and a large share of townhomes
  • A more diverse population, primarily married couples, many with older children
  • Financially responsible, but still indulge in casino gambling and lotto tickets
  • Serious shoppers, from Nordstrom's to Marshalls or DSW, that appreciate quality and bargains
  • Active in fitness pursuits like bicycling, jogging, and aerobics
  • Also the top market for premium movie channels like HBO and Starz

Let's take a look at the two older segments that make up the Upscale Avenues LifeMode:

Urban Chic

Pleasantville

 

 


LifeMode 3 - Uptown Individuals

The Uptown Individuals LifeMode contains three individual tapestry segments: 3A - Laptops and Lattes, 3B - Metro Renters, and 3C - Trendsetters. These three segments are all in the Principal Urban Centers. The median ages of these segments range from 32 to 37 years old.

Households that fall within the Uptown Individuals LifeMode generally:

  • Young, successful singles in the city
  • Intelligent (best-educated market), hard-working (highest rate of labor force participation) and averse to traditional commitments of marriage and home ownership
  • Urban denizens, partial to city life, high-rise apartments and uptown neighborhoods
  • Prefer debit cards to credit cards, while paying down student loans
  • Green and generous to environmental, cultural and political organizations
  • Internet dependent, from social connections to shopping for groceries (although partial to showrooming)
  • Adventurous and open to new experiences and places

For a better understanding of this LifeMode, let's take a look at two of the Segments that make up the Uptown Individuals LifeMode:

Laptops and Lattes

Trendsetters

 

 


The Takeaway

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 segment does, 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

If you would like to learn more about Stratasan and how we can equip your team to use Tapestry Segmentation on your patients or market, contact sales@stratasan.com.

 

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