The segmentation we did for a major international film studio replaced a demographic approach to marketing films. The work revealed, for example, that 30% of the existing target simply does not go to the cinema, instantly allowing wasted budget to be cut or redeployed.
The segmentation saved $25m without any loss of revenue. With our help it’s now used with great precision to identify the most likely target for any new movie and to allocate resources into the media and messaging most likely to appeal to that target.
This global company used our segmentation to become less product, and more customer, focused. Before they treated their top 20% of their business as one group, but we found two high value segments delivering over 80% of margin, each with contrasting product and servicing needs.
Within a year of the segmentation the business had its most profitable twelve months ever, growing margins by 50% and exceeding objectives by four thousand percent, even though the customer base was reduced by 33% on a like-for-like basis. The two key high value segments grew by 42% and 30%.
The TV company previously designed its programming around demographics, (princesses for girls and football for boys), but within seven months it had used the six viewer types revealed by our segmentation to grow from a poor no. 3, with half the share of its two main rivals, to no. 1 in its market.
A second channel was launched, without cannibalising the core station, the worst performing segment was converted into loyalists and the findings were integrated into all performance tracking and KPI measures.
We used our rigorous process to identify nine groups, of which four were high value, allowing the risk manager to increase profitability by reducing both the customer base and costs by 10%, without any loss of revenue.
The objective was to align sales and product development resources to the real value of the customer to the business. We segmented the entire risk manager database, and replaced the existing sector-based segmentation.
This FMCG client with the no.2 and no.3 brands in their market previously used a blunt two segment means of going to market that did not allow them either to minimise cannibalisation between their own products, or compete effectively against the market leader.
Our segmentation revealed not only the distinct target audiences for each of their brands, but the two core segments for the market leader, allowing them aggressively to target additional market share with minimal cannibalisation. This enabled new products and communication to be designed to influence priority customers and grow overall portfolio share.