Better segmentation: creating a meaningful strategy

Clusters : Chris Cowan Chris Cowan, August 6th 2015 Marketing Segmentation
Better segmentation

Do you have a segmentation that sits unloved and unused in your systems or on your bookshelf? A good segmentation should be widely used across your organisation for years. It should live, breathe and enhance the way you go to market and drive growth for your business.

Many of the points below may seem obvious, but you’d be surprised how rarely they are applied.


  1. Cold, hard evidence
    Depend upon statistically significant results. The only good segmentation is robustly quantitative. Focus groups are fine to embellish but as a basis for a segmentation are useless.


  1. Tailored design
    Make sure the segmentation is designed around your specific business growth and ambitions. Generic, cookie-cutter segmentations bear no relation to your brand in your market.


  1. Data relevance
    Choose the best data to most effectively inform decision and action in your business. It really is an art and a science. For each segment, you need to know:

    1. Its value (current and potential) in your market and to your business.
    2. The triggers (brand, product, service, comms etc) that will most effectively influence this segment.
    3. The barriers you need to overcome to appeal to them.
    4. Where to find them and how to reach them.


  1. Precision analysis
    Take advantage of the best analytical techniques. Most segmentations use generic software embedded in existing systems. These are OK but imprecise. For example, our bespoke technique and software is much more accurate, providing 96% accuracy compared to the industry standard of 60%.


  1. Embed
    Make the segments part of your company’s vocabulary. However complex and data-heavy, a good segmentation has to be easily understood and used company-wide. So the segments must live and breathe as recognisable humans or customers as well as providing analytically rigorous data-based evidence to guide decisions and action.


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