It can be easy to spend large amounts of money using a shotgun approach trying to attract every person to your products and services, only to find that you’ve overspent your budgets and you don’t have any new customers. It’s hard to get noticed in this clutter filled the world but attempting to reach everybody with your product or service is not only inefficient, but it’s also very expensive. That’s why it’s important to narrowly define your target customer and meet them where they hang out.

A key part of any strategic marketing, branding or advertising project is market segmentation.  We prefer to develop a “customer framework” rather than simple “customer segmentation”. It results in a solid, guided set of deliverables

A customer framework is a way of looking at a product category by identifying distinct segments of customers whose emotive needs and behaviour will fundamentally differ from each other. We work from the understanding that all customers are not the same. A customer framework informs how a business distributes into its market(s) and guides.

A few of the questions we’ll answer about different segment profiles are:
  • Who are my ideal customers? (We use demographics such as age, annual income and education level. Use psychographic information such as behaviours, hobbies and values.)
  • What are their pain points? (Efficiency, ease of use, time, etc.)
  • Why should they buy from me (and not my competitors)?
  • What are their most common objections to doing business with me? (Cost, time etc.)
  • Who is not my target customer?
We also look at the individual segment profiles in terms of:
  • Size and Value to the business
  • Psychographics – Key motivators and decision factors
  • Behaviour with respect to specific brands and products
  • The Demographics – Who are they, where do they hang out, how do they search.
  • Preliminary Trigger Concepts – what messaging, content, value propositions etc will let you attract, sell to and retain them.
The Objective and Steps

To successfully design and execute the customer segmentation research, determine the optimal segmentation solution and prepare the comprehensive customer framework

  • Develop a research design and survey, working closely with the client team. Internal and external surveys are typically recommended, as a proven way to do segmentation research. Areas of study include attitudes, motivations, needs, product usage and purchase behaviour, competitive brand imagery, and demographics
  • Finalize, program and field questionnaire, including client approval
  • Finalize segmentation iterations, and hold a work session to review and select a segment solution
  • Thoroughly analyse data and develop customer framework, including marketing target selection criteria and recommendations
  • Hold work session(s) to review segmentation analysis and confirm marketing target(s)
What You Get

Agreed-upon research design and research instrument

Segmentation solutions

Quantified segmentation framework, integrating attitudes and behaviours, key issues and implications

Potential need gaps and “white space” opportunities for future growth

Key outputs of this step are used as an input into market feedback and value proposition optimisation.