Better target your brand through identifying distinct customer segments
Segmentation refers to group of statistical techniques that divide a market into distinct groups based on common characteristics such as behaviours, attitudes, demographics, and firmographics. By identifying and understanding these segments, you can create targeted marketing campaigns, design personalised products or services and enhance customer satisfaction. Segment based communications are more relevant, and more effective than a ‘one size fits all’ approach.
At Lonergan Research, we believe segmentation is both an art and a science, which combines analytical methodologies and creative interpretation to uncover distinct groups and guide strategic decision making.
HOW SEGMENTATION WORKS
Our segmentation methodology:
- Qualitative insights: Focus groups or in-depth interviews are often conducted first, to ensure we have a deep understanding of the market, and to form hypotheses about different variables that differentiate the market.
- Data Collection: We include a range of relevant survey questions that capture demographic information, behaviours, attitudes, and preferences.
- Variable Selection: We identify potential key variables that differentiate consumers. This process combines our expertise into the research objective, as well as statistical techniques such as principal component analysis to identify patterns.
- Statistical Analysis: We employ advanced statistical techniques such as latent class analysis and cluster analysis to identify meaningful segments based on the selected variables.
- Segmentation Analysis: We generate numerous alternative segmentations and decide on the final segmentation that is most insightful and aligned to your research objective.
- Strategic Decision Making: We characterise each segment by their unique traits, behaviours, attitudes, and preferences, which act as an inspirational framework for strategic decision making.
- Targeted marketing: Tailor your marketing efforts to specific customer segments, improving your overall return on investment.
- Product differentiation: Understand the preferences of your specific segments, which allows for greater product differentiation and personalisation to meet unique needs and desires.
- Differential pricing: Maximise your profit and market share through segment specific pricing.
- Market expansion: Segmentation can reveal new and previously untapped opportunities for market expansion and diversification.
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