What’s Wrong With Segmentation?

What’s Wrong With Segmentation?

1. ¿What is needed to perform a good segmentation?

   • Market segmentation is the process of dividing a market into smaller uniform groups that have similar characteristics and needs
     • The requirements for a good segmentation are
       • When many variables combine to provide a deep knowledge of the segment, it is known as deep segmentation. When enough information is given to create a clear picture of the typical member of the segment, it is called the buyer's profile. A statistical technique commonly used in determining a profile is the cluster analysis (group analysis).

2. Bridging Customer and Commercial Value

   • Designing, executing and implementing world-class segmentation requires bringing together perspectives from across the organization to ensure that outcomes link closely to desired objectives

3. Connecting the Organization

   • Segmentations have the greatest impact when they are understood and used by all relevant functions in the organization.
     • In practice, segmentations are often owned by the insights department, rather than led by it

4. Linking to Marketing Tools

   • Segmentation can only serve as a platform for growth when it is connected to key marketing tools and integrated into marketing processes
     • For example, connecting with the organization’s CRM database—and any existing micro segmentations—allows for immediate translation of marketing strategy to execution, measurement and optimization

5. How to Get Started

   • organizations should first create cross-functional alignment by setting the vision for success and developing a blueprint for how segmentation results will be implemented across the organization
     • Maintain consistent internal communication and stakeholder management across all levels
       • design an embedding and socialization program that equips employees at all levels of the organization

6. Market segmentation must be considered a platform for driving crossfunctional strategy

7. Bridging Customer and Commercial Value

   • World-class segmentations delicately balance in-depth customer understanding, commercial relevance and future orientation
     • Designing, executing and implementing world-class segmentation requires bringing together perspectives from across the organization to ensure that outcomes link closely to desired objectives

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