Make Segmentation Work for Profits


Originally posted on LinkedIn on November 9, 2017.

Segmentation is the most complex and potentially rewarding element of the marketing mix. However, many businesses do not take advantage of the power it can bring. One common reason is that many think of segmentation in a very static context. In reality, segmentation is very situational.

Understanding behavioral segmentation is especially important. Behavioral segmentation has multiple subsets and as such has situational implications. The principal situational contexts are segmenting by outcomes, by benefits, by psychographics, and by use basis.

Effective segmentation involves combining these appropriate segmentation schemes across the marketing mix. Benefit segmentation is specifically valuable in defining and positioning the offering. Psychographic segmentation is specifically useful in designing and tailoring messages as well as identifying communication vehicles. Segmentation yields positive results only if the right segmentation strategy is chosen. When choosing target segments care should be taken that the segments are measurable, substantial, and accessible.

Our Breakthrough Toolkit™ enables segmentation by all or most of these segmentation approaches, either by the cluster analysis we do where the factor analysis enables meaningful clustering, or by slicing the data by several factors desired by the client.

We select benefit segmentation to help clarify the offering, outcome segmentation to define the positioning, motivational, and attitude segmentation to help craft the messaging. We also use other segmentation schemes to hone down the audience whenever we can.



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