Our guide to customer segmentationPresentation Transcript
Our Guide to
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
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
• 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
• 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
Size Attitudes Behaviours EngagementValue
Company size Fears, worries,
rituals, way of
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.
Step 1: Assess what data and insight you
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
Finding those hidden nuggets of information
Step 2: Get some customers in a room and have
Invite a specially selected mix of your
customers in for a coffee and a chat. Be
prepared to ask them a little bit about
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
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
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
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
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
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
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
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
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
You might want some
advice on how to get
the most out of your
work. Whether it’s
product development or
pricing we’ll get you