Market Segmentation Library

Comparison of Segmentation Approaches

Segmentation approaches can range from throwing darts at the data, to human judgment, to advanced cluster modeling. We will explore four such methods: factor segmentation, k-means clustering, TwoStep cluster analysis, and latent class cluster analysis.

Business Segmentation: Emerging Approaches to More Meaningful Clusters

Conducting opinion research among businesses is problematic. This is particularly evident at the simplest level of analysis, customer segmentation. However, segmentation techniques are evolving and techniques that were common practice in the recent past are rapidly being supplanted by newer, more meaningful segmentation techniques.

Market Segmentation

When the term "market segmentation" is used, most of us immediately think of psycho-graphics, lifestyles, values, behaviors, and multivariate cluster analysis routines. Market segmentation is a much broader concept, however, and pervades the practice of business throughout the world.

Multidimensional Segmentation

Regardless of the length and complexity of a survey, the overarching task is to glean actionable business recommendations from the research you implement. This paper presents a case study to demonstrate how you can steer through what may seem like too much data, using a technique we call multidimensional segmentation (the intersecting of multiple segmentation solutions driven by different consumer characteristics and attitudes).

4 Keys To Optimizing ROI From Your Segmentation

Segmentation studies are a large investment, which makes it critical to ensure that your organization will utilize the results to their fullest to justify the ROI. This blog discusses several actions you can take to use your segmentation results.

Ask the Experts:

What’s Key to a Successful Segmentation?

Well-conducted segmentation initiatives are highly beneficial, but they also are expensive and time-intensive for the organization. Kelly, has gathered expert advice on segmentation from three colleagues with varied areas of expertise. Here are some tips for ensuring a successful segmentation.

The Windy Road of Travel and Market Segmentation

This blog's author was struck by the similarities and differences between conducting Segmentation research and the process, and impact, of voting. While segmenting respondents based on commonalities to “divide” a defined population into addressable markets for our client to target, the election was highlighting and reinforcing the differences between two increasingly antagonistic groups.

Market Segmentation Using Textual Data

As a part of Decision Analyst's ongoing research into analytic methods, a large experiment was conducted using cluster analysis of embeddings, which translates to clustering on meaning rather than on words or bundles of words.

The Bridging Model:

Connecting A Segmentation To Customer Databases

Segmentation is a very powerful tool. Leverage that power by applying the segmentation to your company’s customer database(s). Organizations that successfully classify their customers into segments increase the likelihood that their brand communications and new products will meet the needs of those customers.

Global Segmentation—Dealing with Cross-Cultural Differences in Survey Rating Scale Usage

Developing segmentation solutions that are global in scope requires dealing with cross-cultural differences in scale usage. Given cross-cultural differences in scale usage, marketing research analysts frequently develop ways to adjust survey responses, so that a particular survey response value means the same thing regardless of country of origin.

How Many Segments Are Optimal?

When deciding upon a segmentation solution, companies often wonder how many market segments they should have. Perhaps 3, 5, or 8, or maybe even 10, 15, or 20? Here are some guidelines on how to decide on the number of segments needed.

The Top 5 Question Types to Include in Market Segmentation

In market segmentation, the distinctiveness of the segments depends on the types of questions used in the segmentation analysis. Typically, market segmentation uses 5 question types in the analysis so that segments differ on many facets (needs, behaviors, psychographics, personality characteristics, and demographics), not just needs. Analyzing the data using a variety of these 5 question types gives a holistic view of the consumer market.

The Type Is Right:

Maximizing The Impact Of Segmentation Typing Tools

During the course of most segmentation engagements, a typing tool is developed. This tool classifies future respondents into a segment using fewer questions than used in the original segmentation analysis. Vigorous application of the typing tool is necessary to achieve activation. The more companies integrate the typing tool into discovery and sales processes, the more likely they are to realize the full potential of their segmentation investment.

Does Your Segmentation Need A Refresh?

Segmentation initiatives are expensive and exhausting. Done properly, by including stakeholder interviews, qualitative exploration, quantitative segmentation, qualitative persona development, and an activation workshop, segmentations can take months and require the ongoing attention of internal business partners. When the research and the initial activation process is finished, there remains the big job of socializing the segments throughout the organization.

“Segmentation Studies Never Pay Off”

Overcoming The Myth

In the business world, we’ve all heard it: “We did a segmentation, and no one bought into the results.” It’s important to remember that the research and report are just the beginning of the journey. We have found that it’s often vitally important to flank a segmentation initiative with in-person work sessions involving key members of the client organization’s team.

We Need to Motivate Those Segments

Companies and organizations around the world are using segmentation to identify those groups of customers. As segmentation has evolved, many types of segmentation schemes have been developed; there are segments by product or service needs, sensitivity to price, geographic area, demographic segment, or psychographics and lifestyles. Each of these segmentation types can have their benefits or place.

You’ve Completed A Segmentation Study. Now What?

Leveraging Segmentation To Drive Business Results

Going into segmentation research, companies usually have firm plans, or at least an idea of how they will utilize the results. If a team is considering embarking on segmentation work without such plans, they’re probably not ready to spend the time or money required to make it happen. The last thing anyone wants is for such a significant research investment to fall flat for lack of planning or vision. The good news is segmentation efforts are, more often than not, successful with the right vision and good planning.