Segmentation itself is not a new thing but there are some tricks to make it even more beneficial.
Typically the consumers are segmented based on their common characteristics, needs, wants and desires. Regardless which criteria to use, the general idea is to divide people into distinct groups that are as coherent as possible within each group, and as different as possible from all the other groups. With certain aspects taken into account already in the planning phase, you can get the most of your segmentation and increase the effectiveness of your marketing activities.
General benefits of segmentation
The goal of segmentation is to understand consumer needs and satisfying them better than anyone else. Segmentation gives comprehension of the different types of consumers in the market, and most importantly, makes it easy for companies to gain an in-depth understanding of each segment’s needs and requirements. This enables more effec
tive communication and relevant offering, meaning right messages and products/services, to right people, in right channels and right time. The more relevant the message, the more likely the consumer is to act based on it, which shows as a higher MROI too.
Knowing which segments are the most profitable and have most potential for the company is highly valuable information. The increased comprehension of different consumer needs is most likely to give new product development ideas and help find new business opportunities.
Make the most of your segmentation with a segment key
Creating a segment key can be warmly recommended to take full advantage of the segmentation. Practically, a segment key is a set of statements that separate the segments effectively from each other and later on enables to identify to which group the respondent belongs to.
With a segmentation key, it’s possible to bring the segments to all future research projects to be able to assess the effectiveness of the marketing activities or to enrich the segments even more. This prolongs the life cycle of the segmentation as well.
Bring your segments alive in digital world
The digitalization opens new possibilities for taking advantage of the segmentation. Nowadays, it is possible to take the segmentation to a whole new level by creating digital segments that can be used for more effective online advertising. In order to be able to create the digital segments based on the segmentation, it is absolutely essential to take the specific information needs into account already in the planning phase, for example, comprehensive knowledge of the segments’ interests.
With mass media approaches, part of the communication always goes to unintended consumers, which of course, isn’t the most effective approach as we can all imagine, but with digital segments we can reach the right people with the relevant messages and at the right time. Ideally, there would be different online creatives for each segments to get the most of it.
Read more on the new generation of segmentation approaches in the digitalised world from our previous segmentation focus article.
If you’re interested in hearing more on how segmentation has evolved and what could be the right approach for you from the many possibilities available, give us a call. We work in a method agnostic way, combining the skills in qualitative and quantitative research, digital analytics and data science to produce a solution that will serve your needs not only today, but also tomorrow.