Insights Article

The ultimate sign you’ve created an effective segmentation 
5th November 2024

In market research, customer segmentation is more than just a set of statistics or charts – it’s the art of bringing people together based on shared motivations, values, and behaviours. For us as a market research agency, this process isn’t just a formulaic exercise. It’s a blend of science and insight, resulting in segments that aren’t only logically cohesive but are also immediately recognisable. And, as we often find, these insights come to life most memorably when you meet someone in real life and think, “Ah, they’re definitely in Segment X.” 

The moment segments become real 

If you’ve ever experienced this moment, you’ll know exactly what we’re talking about. There’s something powerful in realising that your months of rigorous data analysis, survey results, and workshops have truly captured a specific group of people in a way that’s tangible and genuine. These segments make specific choices, have particular opinions, and react in ways that match what our data has shown us. 

Take, for example, a project we completed not long ago. After extensive research, we had defined eight distinct segments for a client in the cruise holiday sector. One afternoon, a member from our team had a boiler repairperson over to fix a leak, and found themselves chatting to someone who was the epitome of our first segment – which we’d nicknamed the “Cruise Lovers”. They were incredibly passionate about cruises, self-assured, and the exact kind of person who’d advocate for our client’s brand without a second thought. The lively conversation, sparked by the holiday magnets on the boiler, ended up becoming a strong moment of validation for the months of analysis that had just been carried out. 

Why this matters: beyond charts and graphs 

The reality is that segments only hold value if they truly represent people, not just data points. When you meet someone and can feel they belong to a specific segment, it’s a testament to how accurately that segment was crafted. For businesses, this sense of accuracy is crucial. Segmentation is a tool not just for marketing but for making decisions that resonate with real people. When you understand who your customers are, you’re in a better position to connect with them authentically. 

At its best, segmentation should capture the complexity and nuance of human behaviour. It’s not enough to identify broad categories – each segment must feel genuine and precise. This authenticity in segmentation also builds trust with our clients. They know that when we recommend a strategy or positioning, it’s because we’re not only presenting figures but because we’ve validated those insights in meaningful, human ways. 

When clients see themselves in their segments 

One of the most satisfying moments in our work is when our clients recognise themselves or their close contacts in our segments. This familiarity reinforces the idea that these segments are not abstract or arbitrary – they’re real people who just happen to share common characteristics. Recently, while presenting a segmentation to a client, they stopped midway through and said, “This sounds exactly like my cousin.” It’s comments like these that remind us that our research resonates on a personal level. 

The art and science of segment validation 

Of course, it’s essential to back up segmentation with robust analysis and rigorous testing. But there’s also an art to this process. While machine learning models and clustering algorithms help identify similarities and patterns, the human touch is essential to interpret what these patterns mean in real life. 

Our team often approaches segmentation with a mix of creativity and analytical precision. We start with data – demographic information, psychographics, purchase behaviour – but we avoid relying solely on numbers. Qualitative interviews and contextual understanding can breathe life into these segments, helping us anticipate not only what customers want but why they want it. 

Why this approach works for B2B and B2C alike 

Whether we’re working with a B2B or a B2C client, the goal is the same: to create segments that feel like people you’d know. The recognition might be easier in B2C, where brands often have larger audiences, but B2B segments benefit just as much from this approach. The individuals within a business, after all, make decisions based on values and preferences, just as individual consumers do. 

The real value of segmentation 

Ultimately, segmentation is about understanding people and the choices they make. Each segment represents a unique way of seeing the world, shaped by a combination of values, habits, and aspirations. When we manage to capture this essence, and our clients see these segments reflected in the real world, we know our work has meaning beyond the boardroom. 

So, whether you’ve already carried out a segmentation, or you’re in the process of one, try to see if you can find someone who reflects one of your segments in real life. It’s a reminder that our research goes beyond than just theory; it’s a real look into how people navigate the world. And for our team, there’s nothing more rewarding than seeing our insights come to life. 

 

Want these kinds of results?

We’d love to talk with you about how our insights could help your business grow. Drop us an email at hello@clusters.uk.com or call us on +44 (0)20 7842 6830.

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