“Boiling the ocean” is a bit of a challenge, as is targeting an entire market so we help organisations, large and small, B2B and B2C identify, segment and target their markets and audiences. But, we don’t stop when the segmentation research ends. We work with clients to identify the segments which hold the greatest opportunity (and equally those where there is no opportunity) and develop propositions and messaging strategies that will work with the key target groups.
How do we do it?
Typically, we start with a workshop rather than a questionnaire so that we genuinely understand the product (or service) and your business challenges (both external and internal). The workshop around the product or service might include:
The problems the product/service addresses
The benefits it delivers
General perceptions of the product
What might prompt its purchase
Potential objections to the purchase
The buying process
Who typically buys it
The perceived characteristics of a typical buyer
Internal barriers to change
And if you chose to work with us be prepared to have your assumptions challenged (nicely of course!), as that is what we are here for.
The segmentation techniques we use
Typically, the segmentation research we undertake tends to fall into three main categories
These aren’t exclusive and inevitably geographic and demographic analysis are included in consumer segmentation studies in the same way that sector and size are nearly always included in B2B segmentation studies. Increasingly, however, we use behavioural or needs based segmentation in both B2B and B2C segmentation studies to bring a different dimension to the insight we provide. This often takes into the area of developing buyer personas.
Why? (Always a good question)
We use needs based segmentation for a number of reasons:
In consumer markets we’re finding that age is becoming less and less effective as a way of segmenting markets. In fact, some of the trends we’re seeing are counter intuitive.
Some of the groups people are using to segment markets e.g. Millennials are driven by hype rather than insight and targeting a group that’s so inhomogeneous is often counter productive.
Personality and, perhaps more importantly, need are not defined by age, geography, sector, size of organisation of job title. The drivers that cause people to look for and purchase a product or service inevitably come from a shared set of values or requirements and if you understand these you can message far more effectively.
The development of digital marketing has made demand pull (attracting people to you when they need something) more important than push marketing (proactively promoting your goods and services to people). By understanding the need your customers are looking to address and consequently what they are going to search for means you get noticed when they do the inevitable Google search.
Segmentation studies that understand needs and drivers allows organisations to develop personas. Once these have been identified you can construct specific target groups that your organisation can identify with and use to develop propositions and messaging strategies.
Sapio specialises in segmentation research studies but we bring a new twist to the work we do through our understanding of the importance of behaviour and the businesses can use the insight to change the way they work.
Give us a call to discuss your needs.