We work closely with clients across the industry to develop robust and market relevant end-to-end market segmentation stategies.
Our segmentation framework assists operators and media organisations to navigate the complexities of market segmentation. Our approach leverages our deep understanding of market trends, building propositions, developing proposition roadmaps, and sales and distribution - all of which are dependent on correctly defining market segmentation.
Figure 1: Market segmentation [Source: Analysys Mason]
Determining the most appropriate segmentation model is the most important step in ensuring business goals are achieved. This decision is based on quantitative and qualitative inputs and requires a pragmatic approach. Mobile operators in particular are increasingly employing sophisticated segmentation methodologies to better target specific customer segments, gain market share, reduce churn and boost ARPU.
We work with our clients to create a ‘best-fit’ segmentation method, based on a thorough evaluation of segmentation methodologies and the company's capabilities. We then design and conduct primary research and statistical analysis to create a customised market segmentation. To ensure the customer segmentation becomes a focal part of a marketing strategy, and not just a purely academic exercise, we will continue to work with client marketing teams to ensure consistent and effective application of the developed market segmentation.
We employ the following ‘Golden Rules’ to all our segmentation work:
- keep the 'end goal' in mind
- ensure strong buy-in from key stakeholders
- understand your market and company capabilities
- use a multi-dimensional segmentation approach to ensure true market segmentation
- maintain a balanced focus between strategic objectives, the research approach and implementation strategy
- create segments that are relevant and ‘actionable’
- conduct regular testing to ensure segments are still viable.
Relevant experience
Example projects:
- For a European cable company we segmented their entire national user base, first on a household level, and then identifying individual segments within households. This unique approach allowed our client to effectively offer mobile in its portfolio, which is a more individual service, to its traditional user base which were household units.
- For a new MVNO market entrant we segmented its target user base using behavioural, psychographic (lifestyle, attitudes, personality) and demographic dimensions. Based on this segmentation, we created a full set of products ranging from core services, tariffs, value added services, communication guidelines, channel strategy, and marketing collateral.
