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Market Segmentation

Market segmentation is all about identifying different groups within your target audience so that you can deliver more targeted and valuable messaging, products and experiences for them.

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When is Market Segmentation useful?

Segmentation identifies who to win and how to win them by grouping consumers according to similar attitudes, behaviours, demographics, needs, geography and/or behaviours. The approach can be used for targeting, focusing communications and identifying the richest consumer opportunities for your brand.

  1. When you have limited or finite resources.

    Limited budgets, brands, products, or innovation resources, mean segmentation is a great next step. Or maybe you're a young company and you want to scale up quickly and leverage a first-mover advantage.

    Regardless, you need to focus and apply your resources in an efficient manner that achieves the best ROI.  

  2. When you need to find your most valuable customers.

    Some audiences are inherently more valuable, either today, or for your future growth objectives, and they deserve more resources be put against them.

  3. When you need to identify the consumers that will get you the furthest, fastest.

    These are the people who will represent a disproportionately high amount of business growth and should therefore be prioritized accordingly.

    You'll know you've found the right audience when they're clearly the path of least resistance, whose current behaviors or beliefs lend themselves to your desired outcome. It's also important to consider who will be most receptive to your brand proposition and can be readily reached.

Our Perspective on Market Segmentation

We believe the most useful way to segment a population is to find the commonalities in what drives their choices. For some categories, we may recommend defining people based on their behaviors and attitudes, in which case other characteristics may be used to further profile the segments and highlight actionable differences between the groups. Other times, we may wish to focus on segmenting consumers by the types of needs or occasions they have. 

Defining your priority segments is only part of the journey. Successful application of segmentation analysis requires getting to deeper insights about what really makes these people tick. It also means helping the client team develop empathy for their target consumers by “getting to know them” through this process. This creates a degree of consumer intuition that can be infused into all future decision-making.   

Our segmentations are always reliable, replicable and validated to predict behavioural change for your brand. 

See it in action