The right segmentation model can have a significant impact on rates of customer conversion and retention, as well as on market share and / or profitability.

B2C and B2B segmentation models ascribe customers to individual segments using criteria including demographics, needs, attitudes or behaviours.

However, whilst some models are highly insightful, they remain of little use because they don’t enable customers to be identified, targeted or measured.

Brandspeak focuses on creating segmentation models that:

  • Contain segments with negligible overlap
  • Enable easy identification and targeting of ‘must succeed with’ customers i.e. the most valuable, the most vulnerable.
  • Enable tailoring of the brand’s offer (proposition, product, service, communication, channel delivery and price) to priority groups in order to meet their needs more closely
  • Enable the segment-specific impact of targeted and tailored initiatives to be measured and compared
  • Can act as a diagnostic lens through which to review business and operational data (e.g. sales or customer satisfaction), identifying issues and opportunities that might otherwise have been missed.

In reality, the customer segmentation model that will work best for your organisation is likely to reflect shades of each of the 3 most common modelling approaches outlined below:

  • Demographic segmentation – a segmentation model based on demographics is the most simple and straightforward segmentation model of all, as it uses readily identifiable data such as age, sex and socio-economic status.
  • Usage segmentation – a behavioural segmentation model based on how (often) the customer interacts with the brand by (for example) visiting the store or website, making a purchase or consuming the product.
  • Attitudinal segmentation – a model based on what consumers think about the category in question. An attitudinal segmentation model enables the organisation to target consumers based on what they think and feel, rather than simply on (for example) how old they are or where they live.

Qualitative and quantitative solutions

Brandspeak employs a range of research tools for customer segmentation modelling, measurement and optimisation. These include:

  • Depth interviews, focus groups and other qualitative approaches to identify underlying needs, attitudes and behaviours
  • Usage & Attitude (U&A) surveys and other survey approaches to understand the relative importance of potential segmentation criteria and track them over time

Brandspeak are specialists in Customer Segmentation and Usage and Attitude surveys. For more information about our services please get in touch or call: +44 (0) 203 858 0052

Research ToolKit

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Customer Segmentation Research Brand Speak Market Research
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Customer Segmentation Research Brand Speak Market Research
Quantitative
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Customer Segmentation Research Brand Speak Market Research
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