Sales and marketing pros know that the more they can personalize their approach to a customer or prospect, the more effective they’ll be at building brand relevance and preference.  And, clearly, that translates into increased sales.  However, tailored targeting based on gut feelings and assumptions is all too common and, unfortunately, typically fails.   Rather, organizations that truly succeed at market segmentation utilize strategies built on fact-based business intelligence. 

 

Segmentation studies can explore many different variables to provide a host of insights, including:  

• the most promising segments on which you should focus your efforts, whether it be by geography, vertical market, company size, title/function, department/application, or purchase criteria
• the characteristics of those segments
• their buying and usage behaviors and preferences
• which of your offerings will likely appeal most to them
• the value propositions that best resonate with them
• the most effective marketing messages and tactics
  

To glean meaningful data that can actually drive effective sales, marketing and even product development segmentation, your research partner will help you structure the market study to ensure the segments it explores are:

• identifiable – they have differing attributes that can actually be measured
• accessible – they can be reached through available marketing channels
• substantial – they are large enough to justify your dedicated resources
• unique – they are different enough to make segmentation practical
• durable – they change infrequently, thus minimizing your investment as much as possible
  

Like other types of studies, segmentation research requires expert analyses.  Market research firms rely on statistical techniques like cluster analyses, discriminate analyses, logistical regression and classification trees to deliver meaningful segmentation results.

Certainly, it’s more expensive to slice your markets into differing segments to which you deploy unique sales, marketing and product strategies.  But, if done with fact-based insights and intelligence, segmentation will enable you to be highly relevant to your target audiences.  As a result, your organization will enjoy more impressive market shares and sales growth as well as customer satisfaction and retention.

 

Timing is an important consideration when planning a research project.  Most studies require a minimum of eight to ten weeks from the kick-off meeting to report delivery under good circumstances. However, attempting to field a study at an inopportune time could expand your research schedule and budget as well as limit your ability to incorporate the results into business decisions and plans.

Because it’s the last month of the federal fiscal year, September is not a good month to conduct surveys or recruit focus groups with federal government decision makers.  Many people will decline to participate simply because they’re too busy spending the last of their annual budgets and/or planning for the coming year.  Also avoid fielding surveys with state and local government decision makers in the last month of their fiscal years.  Many state governments mirror the federal government’s fiscal year, while others begin their fiscal years in July or follow the calendar year.

Don’t attempt to conduct surveys or focus groups between mid-December and the second week of January.  Completion rates will be lower due to vacation and holiday time, the demands of completing the year’s projects, and annual planning.  Furthermore, people are more likely to commit to a focus group and then not show up without calling ahead during this timeframe.

The education market has its own set of timing considerations.  Consider the work schedules of teachers, administrators and principals when planning the timing of surveys with them.  They are very busy in August ramping up for the school year, and many don’t work during the summer break.

Lastly, be sure to also consider your own internal timing issues when planning your research schedule.  After the research report is submitted, you and your associates will need ample time to reflect on the results and plan a course of action.  As a result, you may need a three-month lead time before presenting the new business intelligence and resulting recommendations to your internal stakeholders.  And, if there is a preferred existing venue for that presentation – such as a quarterly or annual management meeting – your timing could be further impacted.

Research is an important business investment.  Rushing the process or executing a program at an inappropriate time can impede the return on that investment.  Plan ahead – both for enough time and the right time.