Ces 2013 customer segmentation to learn what works well for whom


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o This paper will explore how evaluators can improve the usefulness of their findings by adapting the customer segmentation methods typically used by marketers. Segmenting customers helps marketers address groups of customers in different ways in order to maximize the groups’ value to the business. Evaluators can use the same techniques to help programs learn how to tailor services to different groups of clients in order to maximize the program’s social value. The paper will review segmentation methods, and present a case study using Heart and Stroke Foundation data on employees’ need for mission/science information.

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Ces 2013 customer segmentation to learn what works well for whom

  1. 1. Social Impact2Social Impact2Customer Segmentation to LearnWhat Works Well for WhomPaul Bakker – Social Impact SquaredSteve Ayer – Common Good StrategiesBeverly Powell-Vinden – Heart & Stroke FoundationCES Conference 20131
  2. 2. Social Impact2Agenda Share what I have learned frommarketers Show the benefits of segmentation inpractice2
  3. 3. Social Impact2WHY LEARN FROMMARKETERS3
  4. 4. Social Impact2Marketing Shares ManySimilarities to Evaluation Marketers are program designers andevaluators As with marketing, social programs can varyboth the messages they deliver and themedium of delivery. For most social programs to be successfulclients need to ‘buy’ into the program and it’stheory of change.4
  5. 5. Social Impact2History of Segmentation inMarketing One of the essential principals in modernmarketing– “If you’re not thinking segments, you’re notthinking marketing” - Theodore Levitt, theMarketing Imagination (1983)5
  7. 7. Social Impact2What is market segmentation Marketing is generally based off the idea ofsegmenting the market, targeting a subgroupin the market, and positioning your offering ina way that will change the behaviour of thatsubgroup7
  8. 8. Social Impact2 8Basic Market Segmentation StrategiesGeographicDemographicProduct UsageLife cycleStage of decisionmaking
  9. 9. Social Impact2Segmentation Steps1. Often start with informal theory.2. “Informal” theory should help inform thedemographics that are recorded3. Formal segmentation using data mining to associatedemographics with observed purchasing behaviourand customer value. Marketers often userandomization to figure out which segments respondbetter to option A or B.4. More sophisticated methods include merging surveyand customer data and creating segments based onfactor analysis, cluster analysis, tree maps, etc.9
  10. 10. Social Impact2Example of Market Segmentation UseC. Non-targetmarket(about 70%)B. Moderateprospects(about 22%)A. Strongprospects(about 8%)• No specificoutboundmarketingactivity• Emails and directmail• Promoted webinarsand group producttours• Personal phonecalls• Promoted individualone-on-one producttoursMarketSegmentMarketingTacticUsed
  11. 11. Social Impact2Market Segments Should Be Internally consistent Substantially different from other segments Predict behaviour in some way Measureable Reachable Cost effective Useful11
  12. 12. Social Impact2EXAMPLE OF SEGMENTATION INEVALUATIONHeart and Stroke Foundation’s review of theMission Content Team’s role and futuredirection12
  13. 13. Social Impact2Project Background The Mission Content Team is a team of sciencespecialists that facilitate knowledge transfer andexchange between and among Heart and StrokeFoundation stakeholders Overall Project Purpose:– Determine potential for formal knowledge broker role atHSF and whether this role could be filled by MCT. Components:– literature review– environmental scan– stakeholder interviews– needs assessment survey (segmentation of results)13
  14. 14. Social Impact2Segments Used We broke results down by office location andjob title, as those variables drove uniqueinformation need and use patterns. Segments:– Marketing & Communications (all are in the ProvincialOffice)– Provincial Office Fundraisers– Provincial Office Research, Advocacy, and HealthPromotion staff– Regional/Local Office Fundraisers– Regional/Local Office Research, Advocacy, and HealthPromotion staff14
  15. 15. Social Impact2Overall Results – Sources ofMission / Science InformationN=8515
  16. 16. Social Impact2Segmented Results – Using MCTfor Mission / Science InformationQuestion: In general, where do you search for mission - / science- information?16.0%10.0%20.0%30.0%40.0%50.0%60.0%70.0%80.0%90.0%100.0%Mission Content TeamMarketing & Communications(Provincial) (N=14)Fundraising (Provincial) (N=24)Research, Advocacy or HealthPromotion (Provincial) (N=18)Fundraising (Regional/Local)(N=13)Research, Advocacy or HealthPromotion (Regional/Local)(N=8)
  17. 17. Social Impact2Segmented Results – Using InternetSearches for Mission/Science Information17Question: In general, where do you search for mission - / science- information?.0%10.0%20.0%30.0%40.0%50.0%60.0%70.0%80.0%90.0%Internet search enginesMarketing &Communications(Provincial) (N=14)Fundraising (Provincial)(N=24)Research, Advocacy orHealth Promotion(Provincial) (N=18)Fundraising (Regional/Local)(N=13)Research, Advocacy orHealth Promotion(Regional/Local) (N=8)
  18. 18. Social Impact2Overall Results – Awareness ofServicesIn-personconsultationsRequests viaemailResearcherSpeakerprogramMission RoundprogramMissionSoundbiteFactsheetsExtremelyawareModeratelyawareSomewhatawareSlightlyawareNot at allawareAverageRankN=7718
  19. 19. Social Impact2Segmented Results – Awarenessof ServicesExtremely awareModerately awareSomewhat awareSlightly awareNot at all awareAverageRankQuestion: The Mission Content Team provides a variety of services and resources. Please rateyour level of AWARENESS of each of the following:19In-person consultationsMarketing &Communications(Provincial) (N=13)Fundraising (Provincial)(N=23)Research, Advocacy orHealth Promotion(Provincial) (N=17)Fundraising(Regional/Local) (N=12)Research, Advocacy orHealth Promotion(Regional/Local) (N=8)
  20. 20. Social Impact2Overall Results UsingSegmentation Highlighted to customize approach to workingwith the different segments. Plans to customize:– type of information– mode of delivery– format of information Will host focus group with regional fundraisers to:– increase awareness– Learn how to better assist them20
  21. 21. Social Impact2Main Take-Aways Only looking at overall results and offeringone-size fits all solutions reduceseffectiveness. Evaluators looking to explain what works wellfor whom, can learn from marketing’s practiceof customer segmentation. Ask direct questions to test the programoptions that are on the table.21
  22. 22. Social Impact2Thank You!Paul Bakker – paul@socialimpactsquared.comSteve Ayer – steve@goodstrategy.caBeverly Powell-Vinden – bvinden@hsf.on.caQuestions?22