Qualitative Research in Segmentation


Published on

To segment effectively, you need to understand what drives the segments, not just how to measure them. That's where qualitative insight comes in.

Please credit the author if you use the material. Some images are subject to copyright.

Published in: Business, Technology
  • Hi Susan,

    I am quite enlightened to hear your thoughts. I've been working around a business idea and this presentation drives a similar concept home. Would love to keep a copy of it if its alright. Could you please email me on nim_capri@yahoo.co.in


    Are you sure you want to  Yes  No
    Your message goes here
  • Woow Your presentation is unbelievble!.. May I have a copy of it? I would really appreciate it. Thanks now. My email baklawaci@gmail.com
    Are you sure you want to  Yes  No
    Your message goes here
No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide
  • Qualitative Research in Segmentation

    1. 1. Qualitative Why you need it & how to get value Presented by: Susan Abbott Abbott Research & Consulting www.abbottresearch.com
    2. 2. Wouldn’t you love a business like this?
    3. 3. 1% of owners buy pet health insurance <ul><li>Why do only 1% buy insurance? </li></ul><ul><li>Was this market lying dormant for decades? Or did something change? </li></ul><ul><li>An estimated 1,300 companies, including Viacom, Ford Motor Co. offer pet insurance to their employees. STARTRIBUNE.COM | 9.11.06 </li></ul>
    4. 4. Is Curves Right for Me?
    5. 5. How do you get this without qualitative?
    6. 6. Standard Chartered Segmentation <ul><li>Developing Loyals I </li></ul><ul><li>Share of customers 9% </li></ul><ul><li>Share of profits 44% </li></ul><ul><li>Highest asset balance across segments </li></ul><ul><li>25% of segment has high bank assets </li></ul><ul><li>Liabilities low </li></ul>Now what?
    7. 7. What are your goals?
    8. 8. Where are we going? <ul><li>When to use </li></ul><ul><li>Designing the study: </li></ul><ul><ul><li>scope </li></ul></ul><ul><ul><li>parameters </li></ul></ul><ul><li>Interpreting and using the insights </li></ul><ul><li>Emerging trends in qualitative </li></ul><ul><li>Hybrid quali-quant research techniques </li></ul>
    9. 9. When to use: before you design a model <ul><li>Develop hypotheses </li></ul><ul><li>A priori segmentation ideas </li></ul><ul><li>Formulate ideas about how you would use segmentation based on understanding of customers </li></ul>Get organized to build model Deepen Learning Build Model Use
    10. 10. When to use: after you build the model <ul><li>To understand each segment better </li></ul><ul><li>Test different communication strategies with segments </li></ul><ul><li>Feedback on concepts from segments </li></ul><ul><li>All your research should incorporate segment knowledge </li></ul>Get organized to build model Deepen Learning Build Model Use
    11. 11. When to use: during ?? <ul><li>Recruit respondents from the quantitative survey </li></ul><ul><ul><li>You may now know what segment they are in </li></ul></ul><ul><ul><li>Instantly have a group for follow-up qualitative research </li></ul></ul>Get organized to build model Deepen Learning Build Model Use
    12. 12. Designing the Study Scope & Parameters
    13. 13. Who do you want to talk to? <ul><li>Be exact </li></ul><ul><li>Customers or non-customers? Users or non-users? </li></ul><ul><li>Recent experience </li></ul><ul><li>Widest possible profile </li></ul>
    14. 14. Scope: Cost vs. Payoff <ul><ul><li>What is the total investment in the segmentation project? </li></ul></ul><ul><ul><li>10:1 rule of thumb </li></ul></ul>
    15. 15. Quali-Quant Methods <ul><li>Adding quantitative data gathering to a qualitative method </li></ul><ul><li>Good idea when you can’t get a large sample </li></ul><ul><ul><li>E.g. CEO interviews – unlikely to get sample of 300 </li></ul></ul><ul><li>Content analysis methods can be revealing </li></ul><ul><ul><li>E.g. word cloud diagrams </li></ul></ul>
    16. 16. How to interpret findings You are paying for insight, not methodology
    17. 17. What you want insight about Language used, metaphors Usage, context, occasions & sequence Motivations & desires Goals & alternative solutions Problems Experiences & stories Influencers Emotions and feelings
    18. 18. How to look for patterns “ pattern recognition begins with variation recognition” Cultural anthropologist Grant McCracken
    19. 19. Teens and technology project  First off - I am constantly left on. Sometimes even overnight. She leaves me in her purse all day. It's stuffy in that tiny pocket shared with all of her other items! I feel like my battery is being charged everyother day from all of the use I get. Luckily, I haven't been dropped, scratched thrown or anything else, so I am in top condition. I've seen her other friend's cellphones and I consider myself very lucky. i got the cell for two reasons one privacy i can't count the number of times my mom picked up the phone when it was for me i'd say &quot;don't pick it up but she would and start trying to have a conversation with them.the second reason is my friends always wants to know where am at so we could get together and chill  
    20. 20. Methods New and emerging
    21. 21. Interviews & Dyads <ul><li>In-person or on phone </li></ul><ul><li>Can add web-meeting for audio-visual </li></ul><ul><li>Can add web-cam if needed </li></ul><ul><li>When interaction can hurt the analysis </li></ul><ul><li>Where group influence is feared </li></ul><ul><li>Where you need to cover more ground </li></ul><ul><li>Where they’ll never come to a group (e.g. lapsed users) </li></ul>
    22. 22. Focus Groups & Roundtables <ul><li>When discussion and interaction aids understanding </li></ul><ul><li>When you can get people in a room together </li></ul>
    23. 23. Text Chat: Online Focus Group Whiteboard Respond here The Discussion
    24. 24. Online Discussion Forum / Bulletin Board
    25. 25. Ethnography
    26. 26. Games, customer workshops <ul><li>Develop hypotheses </li></ul><ul><li>Develop action plan </li></ul>
    27. 27. Emerging – Instant Messaging 1
    28. 28. Emerging – Webcam 2
    29. 29. Blogs, communities, virtual worlds <ul><li>Blogs and electronic journals/diaries </li></ul><ul><li>Online communities </li></ul><ul><li>What’s next </li></ul><ul><ul><li>Virtual worlds </li></ul></ul>3
    30. 30. Qualitative inside the organization <ul><li>Facilitated workshop to develop a plan </li></ul><ul><li>Interviews and focus groups to gather input from all stakeholders </li></ul><ul><li>Understand how groups are handling segments today </li></ul><ul><ul><li>E.g. relationship strategy, sales strategy </li></ul></ul><ul><li>Develop buy-in for new approach </li></ul>
    31. 31. Best Practices
    32. 32. Collaborate <ul><li>Bring the researcher in early to assist in scoping and design </li></ul><ul><ul><li>Particularly important if you do not have in-house research staff </li></ul></ul><ul><li>Involve as many company insiders as you can </li></ul><ul><ul><li>Insight in planning </li></ul></ul><ul><ul><li>Buy-in to execution </li></ul></ul><ul><ul><li>Variety of perspectives </li></ul></ul><ul><ul><li>Watching is more compelling than reading a report </li></ul></ul><ul><ul><li>Participating is more compelling than watching </li></ul></ul>
    33. 33. Before, During and After <ul><li>Plan for when you can get the best use of the qualitative </li></ul>Get organized to build model Deepen Learning Build Model Use
    34. 34. Keep researching… <ul><li>Some things don’t change </li></ul><ul><li>How our brains are hardwired </li></ul><ul><li>Our need for sustenance </li></ul><ul><li>Our desire for safety, security, self-confidence, etc. </li></ul><ul><li>How we age </li></ul><ul><li>How taste-buds work </li></ul><ul><li>The stages of child development </li></ul><ul><li>People tend to form some kind of family or social group </li></ul><ul><li>Some things change constantly </li></ul><ul><li>How we respond to the culture around us </li></ul><ul><li>Our ways of meeting our needs and desires </li></ul><ul><li>Our expectations and aspirations </li></ul><ul><li>Our roles within the social groups and families </li></ul>
    35. 35. Remember … We are not our customers. The more you understand your customer segments, the more competitive you can become.
    36. 36. Thank you! Questions? Susan Abbott Web: www.abbottresearch.com E-mail: [email_address] Blog: www.arc.typepad.com/customercrossroads Phone: 416-481-7409 or 888-244-0285