Qualitative Research in Segmentation


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

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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


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  • Woow Your presentation is unbelievble!.. May I have a copy of it? I would really appreciate it. Thanks now. My email baklawaci@gmail.com
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  • 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
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