We all know that a highly-targeted strategy works better than a one-size-fits-all approach, enabling you to grow faster and more efficiently than your competitors. This is what market segmentation does. It’s all about understanding the different customer groups within your market, their value to your business, and what makes them tick.
Through our own research, we uncover exactly what it is that drives different customer choices in your category (their barriers and motivations), their attitudes, and their perceptions – i.e. what they think of you versus your competitors. But most importantly, we’ll tell you how to influence their behaviour. So, with the information gleaned from the market segmentation, you’ll not only know who to target, but how to reach them and what to say to them.
Market segmentation is a useful tool for understanding the overall market you operate in, but we can also map it back to your own customer base, to understand how the different market segments are already engaging with you. Who do you already do well with, and who is an untapped opportunity?
But segmenting your market is just the process – it’s everything that comes after it that counts. We’ll deliver you an activation plan, enabling you to put the insights from the segmentation straight into action – across brand, product, marketing, comms and more.
Market segmentation benefits
- Reach new audiences – find potential customers you’re not yet interacting with
- Product development – design the right product or service for your audiences
- Customer retention – retain your most valuable customers by providing what they need and want Better communication – tailor communications for each segment
- Increase profitability – reduce marketing spend with more targeted marketing comms and media buying
- Reduce risk of campaign failure – use a data-based approach to design your campaigns and buy media space
Segmentation in action
Insurance can be a boring topic, whether you’re young, old, in the UK or Asia. Learn how FWD Insurance used a market segmentation to crack the insurance market in Hong Kong and launched a brand that become one of the top 5 in the region within two years.
Our unique segmentation approach
Our unique segmentation software offers a far higher degree of accuracy compared to the other industry-standard methods such as k-means. Accurate clustering means more representative market segments, that can be confidentially invested in when it comes to your marketing and media budgets.
Ultimately, our clients succeed because they use our market segmentation and advanced analytics to understand their market better and meet differing customers’ needs.
Clusters has been delivering market segmentation research across business and consumer sectors in over 30 countries for more than a decade. To find out more, take a look at our client case studies or get in touch with us.