Written by: Rachael Ryan
Segmentation studies allow for you to walk in the shoes of different consumers, so you can really understand their buying habits and interests. We’re going to discuss the importance of research and how you can use a segmentation study to create personas.
Segmentation is the process of conducting market research using a survey tool in order to group similar consumers by their purchasing habits, their common needs and attitudes. Segmentation can take many forms, two of which are ‘Needs-based segmentation’ and the second is ‘Attitudinal segmentation’. Then advanced analysis such as conjoint analysis or hierarchical cluster analysis is often used on the data that is gathered.
Once you have your segments, you can prioritize them. This can be done by determining who has the highest propensity to purchase your product as well as tell you how much they are willing to spend and each group’s lifetime value. This is invaluable information because then, your target audience will be the people who already want to buy your product and at a price that they want to pay. It will also allow you to understand the size of each segment, what percentage of the population they are and therefore you can understand each segment’s potential worth to you.
Segmentation will also allow you to find out what may have been missed opportunities in the past. You’ll be able to figure out which audiences are spending money on other similar items and what would make them switch their purchasing habits to your product/service. These segments can be targeted too.
Once you know who your segments are, bring them to life, by creating a persona. If there are various segments - you can pick out the similar traits, beliefs, behaviors, attitudes and values they have and make one persona that you can then market to. It makes marketing to your segments easier, cheaper and more effective. We can see what your persona thinks and how your brand fits into that mindset.
Segmentation has many benefits and it is very important. But by creating personas you can walk in your consumer's shoes. Name your persona (ie. Jack!), you can even draw them for everyone to see, understand their thinking and then you’ll know who you’re trying to get your message across to. When done right, it’s a great way to totally comprehend your segmentation and use it efficiently for every marketing strategy.