Over many years, we have refined a sophisticated approach to undertaking exploratory segmentation for our clients.
1. Hypothetical segmentation
Qualitatively derived hypotheses about possible segments.
2. Define segmentation ingredients
Define a set of ingredient metrics to include in the quantitative survey based on attitudes, behaviours and psychometrics, for example.
3. Ingredient quantification
Collect data on a set of ingredient metrics using a large and representative sample.
4. Explore solutions
Explore possible solutions using different ingredients and cluster techniques.
5. Finalise solution options
Reduce number of solutions down to finalists – usually 2 to 3 solution options – and name segments using “Who Am I?” team game.
6. Validate segments against qualitative research
Sense check solutions back to qualitative stage to choose best option – “can we see these people?”
7. Finalise solutions
Choose best option based on their size, validity, marketing relevance and mathematical robustness.
8. Size and profile solutions
Size and profile the solutions and create segment “postcards” – what defines them and who are they?
9. Bring solutions to life
Recruit 2–3 respondents per segment to create video profiles to further bring alive.
To read about these steps in more detail, download our FREE printable Market Segmentation Guide by completing the form below!
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