The Secret to Segmentation Research Success

The Secret to Segmentation Research Success

Engage Stakeholders
Define Target Audience
Design Multidimensional Survey
Design Multidimensional Survey
Engage Your Internal Stakeholders
Designing a successful segmentation study starts by getting internal buy-in and support across key areas of your organization. Your stakeholders need to understand what to expect from the study and how the results can be used to drive your business forward. Bring them into the process from the start to ensure the study will meet their needs and inform their decision-making. Here are some key questions to ask:
- Who are all of the internal stakeholders who can benefit from a deeper understanding of your customers?
- What customer experiences do they impact most directly?
- What questions do they have about your customers?
- How will they benefit from an enhanced knowledge of your customer segments?
- What business functions and marketing tools need to be linked to segmentation findings? (CRM, new product development, media planning, etc.)
Clearly Define Your Target Audience
Next, you need to clearly define the target audience you will be including in your segmentation research. In an ideal world, you would include a broad cross-section of your audience, both current and prospective customers. However, there are times when cost constraints might require limiting the sample to a more focused target, such as existing customers, or perhaps a certain geographic area. Consider the following questions to help you decide:
- What type of customer information already exists within the organization to help you reach a broad audience (email, phone, address, demographics, purchase transaction data, etc.)?
- What geographies are of highest importance in order to achieve your future business goals (regional, national, international)?
- When including prospective customers, what screening criteria should be included to ensure proper representation, without being too broad or overly restrictive (demographics, life-stage, category usage, competitive brand usage, etc.)?
Give Your Survey Multidimensional Layers
Your survey needs to be broad enough in scope to reveal meaningful and useful consumer segments. In the best-case scenario, it will cover a spectrum of topic areas to help identify naturally occurring customer segments. Here are four key areas to consider including:
- Demographics – Robust profile to enable communication targeting across a variety of media
- Behaviors – Key moments throughout the customer journey to help reveal the variety of customer experiences
- Consumer Needs – Range of consumer needs being fulfilled by your product category
- Psychographics – Variety of lifestyle factors, personal interests, activities, and values that may impact purchase decisions and category usage
Having active and engaged stakeholders, a well-defined target audience and a survey that yields a deeper understanding of the customer on multiple dimensions are essential to the success of any market research study. However, the unique nature of segmentation research makes getting these three steps done right all the more important.
At the end of the day, the results of any marketing research initiative need to be socialized among the key stakeholders. Without that, you might miss out on opportunities to get the greatest value out of your research investment. Segmentation research is no different. It has tremendous value for a wide audience of cross-functional stakeholders. Cap off your segmentation study by socializing findings across your organization and integrating them into action plans to complete the process. After all, the ultimate proof of successful marketing research, segmentation or otherwise, is when your internal stakeholders use the resulting knowledge to improve the customer experience in a meaningful way.
To learn more about how market segmentation fits into an overall CX-focused research strategy, download our free eBook, Enhancing CX with Market Intelligence.
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