The challenge these days is that consumers, now more than ever, have complete control over their shopping preferences and experiences. The proliferation of devices and touchpoints has created new complexities for businesses to navigate. The biggest challenge is that despite these fragmented consumer journeys, your individual customers still want a personal experience.
The average customer does not exist.
Over the last decade, the market for technologies and services that identify individuals’ tastes and preference has grown at an exponential pace—and the next big jump is about to take place. Winterberry Group and the Data & Marketing Association (DMA) say that by 2022, businesses will spend $2.6B on identity technology, up from $200M in 2015.
The reason? Consumers, now more than ever, have complete control over their shopping preferences and experiences. The proliferation of devices and touchpoints has created new complexities for businesses to navigate. The biggest challenge is that despite these fragmented consumer journeys, your individual customers still want a personal experience.
Demographic-based targeting and traditional market research practices are losing ground in their ability to describe and target customers. Today, meaningful segments require information related to mindset, life experience, and paradigm—and less by factors such gender, location, and government census-defined characteristics.
Does your segmentation strategy account for the individual-level differences—and decision factors—that guide paths to purchases? If not, your business may miss out on valuable, meaningful relationship-building moments that culminate into major sources of revenue.
Craft the perfect segments.
Segmentation forms the basis of every brand marketing, campaign-planning, and product optimization strategy. But what’s the best way to distinguish signals in patterns that you observe, from noise in the market? Intuition, alone, is ineffective in helping you connect the dots between people you’re reaching and the cohorts in which these individuals belong. To build smarter segments, you need to take the following steps:
- Identify the dimensions along which your consumers are different
- Define groups based on these differences
- Determine the current and/or potential size of these groups
- Figure out your highest priority targets based on metrics that are important to your business
- Continue to build upon these segments by appending new data sources, testing new hypotheses, and conducting future research to fortify your information repository.
Gradient’s Segmentation Solution uses a hybrid of advanced analytics and traditional market research techniques to build segments that human eyes couldn’t otherwise detect. Our processes incorporate strong research design principles to discover what your segments should be, validate the integrity of these findings, and continuously refine assumptions.
What you have is the ideal pace and cycle of hypothesis generation, testing, analysis, and implementation to keep up with the pace of your fast-evolving business. Rest assured knowing that you’re building accurate, functional, and timeless segments as a result. Be more confident in your marketing investments, knowing that you’re appealing to real people’s needs. Build stronger value propositions for your company as a result. Bring your segment to life, by understanding the people behind each data point.
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