Last Updated: June 5, 2025
You can perform Spatial Segmentation Analysis by using GIS mapping software and geodemographics. Spatial segmentation analysis is a powerful method for businesses to gain actionable insights into their markets by combining demographic and psychographic data with advanced geoanalytics tools. Using software like Maptitude and its segmentation tools, companies can uncover hidden patterns in large datasets to optimize their operations and strategies.
There are normally two phases in a spatial segmentation analysis. The first step is the generation of the overall segmentation framework. This step is the most challenging part of the analysis as it requires the identification of every market segment across the country. The created framework needs to be reusable and it should encapsulate both demographic and psychographic data. To perform spatial segmentation, Maptitude provides users a ready-to-use framework based on Census Block Groups. This allows users to move on to the second step: generation of an individual set of segmentation results, tailored to the interests of a specific business. In this step, users can bring in their own business and customer data to generate important insights into their market. In this article, we will go over how to combine Caliper’s geodemographic segmentation layer with sample customer data to analyze market penetration, high-penetration zones, and also how to leverage this information to discover high-potential markets.
Step 1. Download and Install Software
- Download and install a free trial of Maptitude mapping software, or use your own license of desktop Maptitude.
Step 2: Download Geodemographic data
- Download and install the Geodemographic Segmentation layer from Maptitude.
Step 3: Add the Geodemographic Data into Maptitude
- Go to Map>Layers… >Add Layer then find the ccGeodemographicSegmentation geography file that was downloaded. Click Open.
Step 4: Add Customer Data
- Go to Map>Add Table/Spreadsheet to a Map… then select an excel file containing your customer data. In this case we will be using the Sample Customers file located in the tutorial folder “C:\Users\username\Documents\Caliper\Maptitude 20XX\Tutorial\Sample Customers United States.xlsx”. Click Open. Choose My Customers as the sheet and click Next. Select Show Zip Code Boundaries with Data Attached. Click Finish.
- In the Display Manager, toggle the visibly of the My Data set within the 5-Digit-Zip-Code layer so that it is shown.
Step 5: Market Penetration Mapping
- Open the Dataview of the My Data set within the 5-Digit-Zip-Code layer.
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Select Dataview>Formula Fields.
- In the formula box, enter:
([N My Customers] / Households) * 100 - Name this field Market Penetration (%) and click OK.
- Apply a color theme to this new field to visualize market penetration levels.
- Identify the High Penetration areas—these are the zip codes where your customer base forms a high percentage of the total households.
- Note the dominant geodemographic segments in these high-performing zip codes by cross-referencing them with the geodemographic segmentation layer.
Step 6: Locating High Penetration Geodemographic Segments in a New Market Area
Once you know which geodemographic segments are most common in your high-penetration areas, you can use this insight to find new locations with similar characteristics.
- Use the selection tool to filter the geodemographic segmentation layer to show only the segments that are prevalent in your best-performing zip codes.
- Copy this filtered segmentation layer and apply it to a new city or region you are considering for expansion.
- Analyze the new area to locate neighborhoods with a high concentration of your successful customer segments.
- Use this information to target marketing efforts or identify ideal locations for new stores or services.
By following these steps, you can leverage geodemographic segmentation to uncover patterns in your customer data, identify strong market areas, and make informed decisions about future business expansion.