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As products and brands continue to proliferate, segmenting your market is more important than ever. Dividing a large group of relatively heterogeneous consumers into a set of smaller, more homogeneous segments makes perfect marketing sense. Employing the right segmentation analysis can impact both product development and communication strategy efforts.

As straightforward as it sounds, segmentation research is one of the most challenging quantitative analyses marketers face. It is often difficult to find segments that are both easy to identify and to reach based on simple-to-measure variables.

Segmentation analysis should properly be viewed as a solution. The most important question to be addressed early in the research process is, “How do you plan to use the segments?” Having a clear understanding of what end results are required, and how these results will be used, play critical roles in the ultimate success of any segmentation analysis.


The Three Primary Challenges to a Successful Segmentation:

      1. Selecting the optimal variables for use in dividing a population into subgroups,
      2. Identifying the best statistical algorithms for the segmentation, and
      3. Presenting the results in a usable fashion.

Creating the segmentation model means sorting through demographics, usage behaviors, needs, interests, attitudes and more. Identifying the proper statistical algorithm means choosing from the collection of statistical and heuristic methods for determining segments that have been developed in recent years. And, impactful reports means bringing the results to life with clear, meaningful segment definitions and an action plan for operationalizing your segmentation solution.

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Our Segmentation case study features real-life client challenges and describes how our proprietary solutions provided them with significant value and strategic guidance.