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Our guide to customer segmentation
 

Our guide to customer segmentation

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    Our guide to customer segmentation Our guide to customer segmentation Presentation Transcript

    • Our Guide to Customer Segmentation
    • Our Guides Our guides are here to help you understand a topic or to provide support for a particular task you might already be working on. Inside you’ll find lots of information to help you plan and make better decisions. We’re not saying we have all the answers but we believe the stuff inside this guide will help get you started. If you think we’ve missed anything, or you want to join in the debate then please get in touch. Inside you’ll find • What is segmentation? • Types of segmentation • Creating your own segmentation • Some important things to consider • How we can help
    • What is segmentation? In a nutshell Segmentation is the act of researching and then grouping audiences or customers into clusters that have commonalities and similarities. Each of the ‘segments’ is distinguishable from each other either by demographics, social economics, attitudes, behaviours, motivations or other additional factors. It’s about • Researching customer behaviour, attitudes and profiles to understand characteristics, identify commonalities and differences • Creating clusters of customers who share common factors, whether it’s demographics or simple idiosyncrasies • Identifying the business objectives and requirements for using segmentation i.e. proposition development or marketing • Identifying customer needs and requirements • Helping the business to prioritise activities to meet customer demand • Identifying new revenue and marketing opportunities • Identifying new ways of reaching and engaging with customers
    • Types of segmentation Various methods of segmentation Demographic Socio- economic Size Attitudes Behaviours EngagementValue Age, gender, nationality, beliefs, location Social status, salary, assets Company size Fears, worries, concerns, personality, characteristics Habits, routines, rituals, way of life Spending power, buying patterns Relationships, interactions Before you undertake any segmentation work it’s best to understand what your objectives are, as this will guide the method you choose. Remember you can segment in so many different ways. You could use some of the options below, a mix or take an altogether different approach. You might mix your segmentation up to include existing and potential customers.
    • Creating your own segmentation
    • Step 1: Assess what data and insight you already have Before you undertake any segmentation work have a look at what insight, research and data you have already. There’ll be plenty of past and existing projects that will have collected some information that might be able to help you. You might even find some segmentation that has already been done. When looking through this mass of information and insight assess whether there are any conclusions you can draw from the work. Are you able to group customers into segments based on information already to hand? Use this research phase to really dig out some great work that might be hidden. Finding those hidden nuggets of information
    • Step 2: Get some customers in a room and have a conversation Invite a specially selected mix of your customers in for a coffee and a chat. Be prepared to ask them a little bit about themselves. Tell them what you’re trying to achieve by doing some segmentation. Talk to them about improving products or services and give them all the information they need to feel comfortable talking to you about their personal lives and how they might interact with you. Show them some of the segmentation ideas you might already have. Ask what they think. Ask them what you might have missed or left out. Get them to describe the type of customer they are. Use this session as a primer. It’s about assessing any assumptions or early hypotheses you might want to test. Speak to your customers, learn more about them
    • Step 3: Conduct some customer research By now you’ll have a good idea of the information and insight you already have. You’ll now need to set some time aside to do some customer research. Write a good research brief and be clear on the objectives and desired outcomes you want to achieve. You need to decide which method of research would suit this exercise best. You might design a survey with questions that will help provide output that can be used to segment your customers. Be sure to write a screener so that you’re speaking to the right people and to ensure you have a robust sample and true representation of your customer base involved. If you’re going to conduct some focus groups then design a discussion guide to help you facilitate the session and get the real insights you need. Create a survey, host a focus group, analyse
    • Step 4: analyse your research output and define your segments Take your research results and define your segments. Give each segment a name that sums up the overall insight you’ve generated about them. It’s going to stick in people’s minds, so make sure it’s right. Bring your segments to life by creating personas. Consider bringing the segments to life by using real customer profiles and stories. Define your segments, give them names
    • Some important things to consider
    • Keep your segments to a manageable number Too many and their usefulness will suffer Make sure you don’t go overboard with the number of segments you have. It’s easy to split hairs and think you need to separate as many customers as possible. Remember that segmentation is as much about finding commonalities as it is about differences. Everyone is individual and segmentation is based on generalisations. It’s only the important differences between the segments that you need to focus on.
    • Give them sensible names Make sure the name acts as a segment summary Make sure you don’t get too carried away when it comes to giving your segments a name. Remember they need to be easy to understand by everyone. Eventually you’ll want employees across your business to be able to describe and conjure up the customer in their imagination without having to return to reading the segmentation you’ve developed. A product manager or campaign executive will need to be able to plan their activities against segments they remember and can easily act on.
    • Make sure people are using your segmentation Encourage adoption and ensure it has a role in business decision making Make sure your hard work is being used. Showcase your work to the rest of the business. Senior leaders should already have articulated the purpose of your work and how it will guide everything in the business from product development to pricing decisions and targeted marketing. Define how you want the segments to be used and adhered to. You might decide that only 3 of the 8 or so segments you have found will be focused on. Write a future world where they are used across the business and are considered in every major business decision. Write a plan for how you intend to get your segments used in the way you’ve defined. Watch your work take off and change the business for the better
    • How we can help You’re not alone 1Segmentation projects If you’re looking for us to lead a segmentation project we have all the necessary skills to help you start and complete a project that will deliver tangible results 2Survey Design You may want us to design a survey that will help segment your customer base. We have research skills to ensure you’re asking the right questions, at the right time, in the right way and to the right people 3Strategy You might want some advice on how to get the most out of your existing segmentation work. Whether it’s product development or pricing we’ll get you thinking