Understanding & Segmenting Your Customer - Part II (MI)


Published on

The final lecture in the market segmentation series

Published in: Business, Education
1 Comment
No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

Understanding & Segmenting Your Customer - Part II (MI)

  1. 1. Understanding  &  Segmen/ng  Your  Customer  –   Part  II   GeCng  the  Right  Customer  For  Your  Marke<ng  Message  h"p://emagine-­‐group.com   Brand  Focused,  Socially  Ac<ve,  Digitally  Enabled  
  2. 2. Know  Your  Customer  Types  h"p://emagine-­‐group.com   Brand  Focused,  Socially  Ac<ve,  Digitally  Enabled  
  3. 3. The  Resistant  Customer   Ø  Mindset:  Hates  your  company  and   holds  deep  resentment  for  your  brand   Ø  Behavior:   –  Will  spread  nega<ve  word  of   mouth  wherever  possible   –  Took  their  experience  with  your   brand  personally  and  is  looking  for   revenge   –  Will  defect  to  your  compe<tor  first   chance  they  get   Ø  Loyalty:  Zero   Ø  Possibility  of  Defec/on:  Extremely   High  (you  can’t  save  this  group)  h"p://emagine-­‐group.com   Brand  Focused,  Socially  Ac<ve,  Digitally  Enabled  
  4. 4. The  Indifferent  Customer   Ø  Mindset:  Sees  your  company/product/ service  as  nothing  more  than  a   commodity   Ø  Behavior   –  Will  always  try  to  get  lower  prices   to  the  point  of  near  zero  margin   –  They  will  promise  volume  or  future   business,  but  see  li"le  unique   value  in  your  offering   –  Always  willing  to  walk  away  from   the  sale  because  they  have  other   op<ons  available   Ø  Loyalty:  One   Ø  Possibility  for  Defec/on:  Very  High  h"p://emagine-­‐group.com   Brand  Focused,  Socially  Ac<ve,  Digitally  Enabled  
  5. 5. h"p://emagine-­‐group.com   Brand  Focused,  Socially  Ac<ve,  Digitally  Enabled  
  6. 6. The  Acceptant  Customer   Ø  Mindset:  Expects  your  customer  to   provide  the  maximum  of  what’s  asked   and  nothing  more   Ø  Behavior:   –  Doesn’t  think  of  your  brand  un<l   absolutely  necessary   –  Comes  to  you  because  you  have   become  a  habit  or  more   convenient  choice   –  Maybe  aware  of  other,  be"er   op<ons,  but  simply  hasn’t  made   the  effort  to  pursue  them   Ø  Loyalty:  Two   Ø  Possibility  for  Defec/on:  High   –  Customer  expecta<ons  can   outpace  what  you  provide  h"p://emagine-­‐group.com   Brand  Focused,  Socially  Ac<ve,  Digitally  Enabled  
  7. 7. h"p://emagine-­‐group.com   Brand  Focused,  Socially  Ac<ve,  Digitally  Enabled  
  8. 8. The  Preferen<al  Customer   Ø  Mindset:  Has  grown  to  like  your  brand   and  tends  to  understand  the  unique   value  that  you  provide   Ø  Behavior:   –  Most  of  us  make  the  mistake  of   making  this  customer  type  the  top   of  our  customer  pyramid   –  When  given  a  choice,  they  will   probably  con<nue  to  use  your   brand   –  Very  aware  of  industry  trends  and   can  surprise  by  defec<ng  if  you   have  not  given  them  benefits  or   raised  the  bar  on  service  or   innova<on   Ø  Loyalty:  Three   Ø  Possibility  for  Defec/on:  Somewhat   High  h"p://emagine-­‐group.com   Brand  Focused,  Socially  Ac<ve,  Digitally  Enabled  
  9. 9. h"p://emagine-­‐group.com   Brand  Focused,  Socially  Ac<ve,  Digitally  Enabled  
  10. 10. The  Evangelist     Ø  Mindset:  The  pinnacle  of  the  customer   rela<onship  and  would  buy  anything   you  offer   Ø  Behavior:   –  They  tell  everyone  they  know   about  your  company   –  Men<ons  how  sa<sfied  they  are   even  in  casual  conversa<ons   –  Your  brand  has  become  part  of   their  life   –  Finds  personal  meaning  with  your   brand   –  Worth  their  weight  in  gold  because   they  do  more  to  grow  your   business  than  any  ad  campaign   Ø  Loyalty:  Four   Ø  Possibility  for  Defec/on:  None  h"p://emagine-­‐group.com   Brand  Focused,  Socially  Ac<ve,  Digitally  Enabled  
  11. 11. The  Customer  Profile   Who  is  my  target  customer?  h"p://emagine-­‐group.com   Brand  Focused,  Socially  Ac<ve,  Digitally  Enabled  
  12. 12. When  we  talk  about  profiling   customers,  we  start  with  the   basics  –  or  what  is  know  as  the   old  way….  h"p://emagine-­‐group.com   Brand  Focused,  Socially  Ac<ve,  Digitally  Enabled  
  13. 13. Old  Way   Standard  Demographics     Age,  Race,  Income,     Educa<on,  Family  Size,  Employment  h"p://emagine-­‐group.com   Brand  Focused,  Socially  Ac<ve,  Digitally  Enabled  
  14. 14. Now  this  way  has  given  marketers  a   great  deal  of  informa<on  over  the   decades,  it  has  not  improved  the   marke<ng  performance  of  our   ac<vi<es  and  campaigns  h"p://emagine-­‐group.com   Brand  Focused,  Socially  Ac<ve,  Digitally  Enabled  
  15. 15. Why?  h"p://emagine-­‐group.com   Brand  Focused,  Socially  Ac<ve,  Digitally  Enabled  
  16. 16. The  standard  demographics  are  a   very  general  way  of  looking  at  a   customer  –  it  gives  us  insights  but   not  details  which  we  need  to  drive   our  marke<ng  h"p://emagine-­‐group.com   Brand  Focused,  Socially  Ac<ve,  Digitally  Enabled  
  17. 17. Rs.   40+   200,000+   Master’s   Business   Degree   Owner   Family  of   Middle   2   Eastern  h"p://emagine-­‐group.com   Brand  Focused,  Socially  Ac<ve,  Digitally  Enabled  
  18. 18. This  is  the  limita<on  of  the  old   way  of  marke<ng  segmenta<on  h"p://emagine-­‐group.com   Brand  Focused,  Socially  Ac<ve,  Digitally  Enabled  
  19. 19. New  Way  –  Audience  Segmenta/on   GeCng  to  the  root  of  your  customer  h"p://emagine-­‐group.com   Brand  Focused,  Socially  Ac<ve,  Digitally  Enabled  
  20. 20. When  you  use  a  audience   segmenta<on  method,  you  are   be"er  able  to  break  down  your   customer  into  clear  sets  of  detail   that  allow  you  to  target  them  more   effec<vely  h"p://emagine-­‐group.com   Brand  Focused,  Socially  Ac<ve,  Digitally  Enabled  
  21. 21. Is  audience  segmenta<on  just   about  behaviors?  h"p://emagine-­‐group.com   Brand  Focused,  Socially  Ac<ve,  Digitally  Enabled  
  22. 22. When  we  work  with  this  method,   we  start  from  a  different  point   than  the  tradi<onal   demographics  h"p://emagine-­‐group.com   Brand  Focused,  Socially  Ac<ve,  Digitally  Enabled  
  23. 23. Where  do  you  think  we  start  in  this   method?  h"p://emagine-­‐group.com   Brand  Focused,  Socially  Ac<ve,  Digitally  Enabled  
  24. 24. Life  Roles  are  the  different  things   that  we  are  that  make  up  our   buying  decisions.  h"p://emagine-­‐group.com   Brand  Focused,  Socially  Ac<ve,  Digitally  Enabled  
  25. 25. When  marketers  start  with  life  roles,   we  are  be"er  able  to  define  our   customer  because  different   behaviors  fall  into  the  different  roles   we  carry  in  life.  h"p://emagine-­‐group.com   Brand  Focused,  Socially  Ac<ve,  Digitally  Enabled  
  26. 26. When  you  define  someone’s  life   roles,  you  are  be"er  able  to  define   their  –     behaviors,  habits,  interests  and   purchasing  decisions  h"p://emagine-­‐group.com   Brand  Focused,  Socially  Ac<ve,  Digitally  Enabled  
  27. 27. h"p://emagine-­‐group.com   Brand  Focused,  Socially  Ac<ve,  Digitally  Enabled  
  28. 28. h"p://emagine-­‐group.com   Brand  Focused,  Socially  Ac<ve,  Digitally  Enabled  
  29. 29. Understanding  Market  Segmenta/on   Learning  How  to  Break  Down  Your  Customer’s  Into  Groups  h"p://emagine-­‐group.com   Brand  Focused,  Socially  Ac<ve,  Digitally  Enabled  
  30. 30. Market  segmenta/on  is  the  process   that  companies  use  to  divide  large   markets  into  small  markets  that  can   be  reached  more  efficiently  and   effec<vely  with  products  and   services  that  match  their  unique   needs  h"p://emagine-­‐group.com   Brand  Focused,  Socially  Ac<ve,  Digitally  Enabled  
  31. 31. Market  Segmenta<on  h"p://emagine-­‐group.com   Brand  Focused,  Socially  Ac<ve,  Digitally  Enabled  
  32. 32. Market  Segmenta<on  Divides  the  market   Divides  the  market  into  different   into  groups  based  on  geographical  units   variables  such  as  such  as  na<ons,   age,  gender,  family  regions,  states,   Geographic   Demographic   size,  income,  coun<es,  or  ci<es   segmenta/on   segmenta/on   occupa<on  and   educa<on  Divides  buyers  into   Divides  buyers  into  different  groups   Psychographic   Behavioral   groups  based  on  based  on  social  class,   segmenta/on   segmenta/on   their  knowledge,  lifestyle,  or   aCtudes,  uses,  or  personality  traits   responses  to  a   product  h"p://emagine-­‐group.com   Brand  Focused,  Socially  Ac<ve,  Digitally  Enabled  
  33. 33. How  Do  We  Market  To  These  Segments?  h"p://emagine-­‐group.com   Brand  Focused,  Socially  Ac<ve,  Digitally  Enabled  
  34. 34. Marke<ng  Segmenta<on   New  vs.     4  Key   8  Major   16  Visitor   All   Returning   Products   Markets   Personas  100%  of  visitors   100%  of  visitors   1  segment  =  all     16  segments  =  all    h"p://emagine-­‐group.com   Brand  Focused,  Socially  Ac<ve,  Digitally  Enabled  
  35. 35. Market  Targe<ng   Mass   Segmented   Niche   Local/Individual  Undifferen<ated   Differen<ated   Concentrated   MicroMarke<ng   Marke<ng   Marke<ng   Marke<ng  Targets  the   Targets  several   Targets  a  small   Prac<ce  of  whole  market   different  market   share  of  a  large   tailoring  with  one  offer   segments  and   market   products  and     designs  separate     marke<ng  Mass  marke<ng   offers  for  each  to   Limited  company   programs  to  suit     achieve  higher   resources   the  tastes  of  Focuses  on   sales  and     specific  common  needs   stronger  posi<on   Knowledge  of   individuals  and  rather  than   the  market   loca<ons  what’s  different     More  effec<ve   and  efficient  h"p://emagine-­‐group.com   Brand  Focused,  Socially  Ac<ve,  Digitally  Enabled  
  36. 36. Results  from  Mass  Marke<ng   Price   Direct  Sales   Fill  by  ad  networks   Volume  h"p://emagine-­‐group.com   Brand  Focused,  Socially  Ac<ve,  Digitally  Enabled  
  37. 37. Results  from  Market  Segmenta<on   Price   Direct  Sales   Audience-­‐based  selling   New  Revenue   Fill  by  ad  networks   Volume  h"p://emagine-­‐group.com   Brand  Focused,  Socially  Ac<ve,  Digitally  Enabled  
  38. 38. Results  from  Audience  Targe<ng   Price   Direct  Sales   Audience-­‐based  selling   New   Revenue   Fill  by  ad  networks   Volume  h"p://emagine-­‐group.com   Brand  Focused,  Socially  Ac<ve,  Digitally  Enabled