New Generation

Market Segmentation

SEGMENTATION THAT LINKS TO BEHAVIORS. FINALLY. (A 2 minute video.)

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SEGMENTATION THAT LINKS TO BEHAVIORS. IT'S TIME. (VIDEO)

THE LIMITATIONS OF CONVENTIONAL  SEGMENTATION

MARKET SEGMENTATION USING DECISION SUPPORT ENABLEMENT (DSE)

THE PHASES and STEPS

OF A DSE SEGMENTATION  ENGAGEMENT

KEY BENEFITS

EXAMPLE CLIENTS

WHITEPAPER (PDF)

CONTACT / QUESTIONS

VIDEO

CENTER

CONSULTING

PLATFORMS

SOFTWARE

SOLUTIONS BY INDUSTRY

THE LIMITATIONS OF CONVENTIONAL SEGMENTATION APPROACHES

Why Do Conventional Market Segmentation (CMS) Engagements Produce Sub-Optimal Segments?

  • The market segmentation landscape is littered with costly, failed approaches to segmentation:
    • Both academics and practitioners have demonstrated that the standard scalar (e.g. 1-5 scale) or categorical (pick-any) data fails to link optimally to behavior.
    • Worse yet, although conventional segmentation sounds compelling:  (e.g. "Relators", "Loyal Joes", etc.) these segments do NOT map 1:1 to real-world customers in your datamart.
    • Worst of all, over 95% of CMS engagements don't produce operational change - because they don't link to the premier platform for sales and service - your retail datamart (or EMR system).
  • The data collected is incomplete or inadequate. The measurement system for segmentation :
    • Misses important drivers of segmentation.
    • Doesn't reproduce the purchase decision - so it misses real-world trade-offs people make that reveal their underlying need states.
    • Doesn't recognize that the average customer has only 3-4 key drivers.
    • Doesn't recognize that  across segments most markets have only 25 key drivers - not hundreds.
  • The Segmentation Decision Support System ( SegDSS) doesn't produce optimal segments because it:
    • Doesn't use a rich enough measurement model (See above.)
    • Doesn't use a rich enough set of algorithms to develop the segments.
    • Doesn't perform deep validation (mathematical cage wrestling) to validate the segments.
    • Doesn't use automated expert systems in recommending the optimal segmentation.
    • Doesn't visualize the optimal segmentation.
  • The consulting firm :
    • Imagines that they are your equity partner - and charges you that way.
    • Gives you only the fish (the segments) not the the fishing pole (the segmentation system.)

REINVENTING SEGMENTATION USING DECISION SUPPORT ENABLEMENT (DSE)

Our Decision Support Enabled Segmentation (DSE) practice provides the following improvements over traditional segmentation approaches:

 

  • The Measurement System for DSE Segmentation :
    • Uses a rich, seven dimension measurement model (NOT JUST attitudes on a 1-5 scale.)
    • While retaining important measures from prior systematics (especially categorical behaviors.)
    • Captures new, important missing drivers of behavior by reproducing the purchase decision.
    • Captures needs-based drivers for each customer by using a transform of the importance (utility) of each key product attribute in the market.
  • The Segmentation Decision Support System ( SegDSS) produces optimal segments because it:
    • Uses the industry's broadest set of segmentation algorithms (cluster/Q-factor/factor.)
    • Performs deep validation (mathematical cage wrestling) to test the different ways a segmentation can be termed "optimal."
    • Uses an embedded expert system to recommend the optimal final segments.
    • Visualizes the optimal segmentation: so that the strategists can understand the that  segmentation both parametrically and visually.
  • The DSE Segmentation Engagement:
    • Costs one-half to one-third that of traditional segmentation engagements.
    • Delivers the fishing pole (the Segmentation System) not just the fish (the segments.)

 

Net-net?  Our DSE Segmentation engagements produce tighter, more separated market segments at a far lower cost.  That's enablement.

PHASES AND STEPS OF A DSE MARKET SEGMENTATION ENGAGEMENT

(Click on the first icon below to start the slide show.)

KEY BENEFITS (Place your pointer over the benefits to see the short description.)

SegmentSolve™:

EXAMPLE CLIENTS

Retail Financial Services

We have deployed over 20 national segmentation studies for many of the the largest U.S. and Canadian banks.

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Retail and Other Financial

We have deployed numerous national segmentation studies for leading retail, mutual fund, investment firm, and trust companies.

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Financial Services

Retail and Selected Other Clients

Healthcare

We have deployed over a dozen segmentation studies for large regional healthcare companies.

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HealthCare

NEW GENERATION SEGMENTATION WHITEPAPER (PDF)

"Any fool can make things bigger, more complex, and more violent.  It takes a touch of genius--and a lot of courage--to move in the opposite direction."

- Albert Einstei

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Download the Segmentation Whitepaper  (1MB PDF)