A customer or market segment is the name for the grouping of customers that share certain characteristics. Understanding your customers (or users)—their similarities and differences—is one of the most fundamental and important steps in understanding the customers’ relationship with your product and company.
Segments allow you to understand the patterns that differentiate your customers, including the ability to
- Identify the most and least profitable customers
- Better focus on marketing efforts
- Improve customer service
- Build loyal relationships
- Price products differently
- Develop better products
- Create personas
- Customize features
MeasuringU provides full-service support for deriving statistically reliable segments from existing customer data or in conjunction with a persona analysis.
- Refining research questions, methods, and hypotheses about the potential segments.
- Defining and writing questions (quantitative) that capture demographics and psychographics (attitudes and beliefs) that differentiate the segments.
- Hosting and programming the survey with appropriate logic (for the quantitative component).
- Recommending the right sample size. There isn’t a one-size-fits all number; instead we work to identify the right number based on the type of study and level of precision needed. The right sample size is a function of how precise we need to be. Most segmentation studies we conduct have 1000+ participants, which allows for stable clusters and small subgroups.
MeasuringU can manage and recruit qualified participants for segmentation studies. We assist in developing screeners and managing participant honorariums and communication.
Typical deliverables include
- Segment descriptions: A high-level view of the number of segments and which variables define membership segment. Each segment contains detailed descriptions of attitudes and demographics.
- Size and value of each segment: When appropriate we can estimate the potential size of a market and its potential value.
- Key drivers: The variables that differentiate segments the most are identified.
- Typing tool: From the key-driver analysis MeasuringU can create a “typing” tool that uses a small set of questions or attributes, which predicts the segment a prospect or current customer fits in.