How to Segment for Actionability & Success

Bright and attractive segmentation

Last week I shared the twelve questions you need to be able to answer in order to ensure you really know your target audience. If you missed it, you can read it here.

The post certainly attracted a lot of hits, so I hope you have all found ways to improve your own customer understanding as a result of reading it. Comments welcome as always.

All brands and services need a group of customers that they are going to satisfy, since it is impossible to appeal to everyone most of the time. This means that you will need to make a choice about who you are going to target, which also implies that you must accept that you will also ignore some other category users.

Last week I read a really great post by Colin Nelson of HYPE on how a simple segmentation of employees enabled Swisslog to understand and improve participation in their innovation ideas campaigns. I highly recommend reading this case study as it shows how even the simplest grouping of a market – in this case employees – can be both actionable and successful.

Segmentation can be as simple or as complex as you like, but is essential for all successful businesses. If you yourself are struggling to understand your consumers, employees, retail customers, or any other group of people, perhaps a segmentation exercise is what you need to run.

 

 Where to start

When deciding who to target, most companies will start by conducting some sort of data gathering. This could be as simple as identifying your users by what you observe, such as young men or large families, or as complex as gathering your customers’ values and motivations. As mentioned in last week’s post, the deeper the understanding of your target customer is, the more likely it is to provide you with a competitive advantage. The same also goes for segmentation.

Choosing the right group of customers to satisfy with your product or service is essential for business success. So is doing everything you can to understand them as deeply as possible. Truly customer centric organisations excel at doing both; do you? Why not share your own success story on segmentation?


Need help in understanding and segmenting your current category customers or defining which group to target?

Let us help; contact us here.


 

This post has been adapted from one that was published on C3Centricity in May 2012.

C³Centricity uses images from  Dreamstime.com  and  Kozzi.com

 

 

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