How to stop your segmentation study being used as a door stop
Start at the end
Think about who will use the segmentation and how they will want to use it? How will the segmentation be integrated with existing databases and other business data, for example? And, what is the segmentation going to be used for?
Involve everyone who needs to be involved
Set up a multi-functional team and clarify everyone's objectives – they will probably differ department by department, so it's important to know what the real priorities are.
Go as wide as you can
Review existing information and qualitatively explore all of the issues and potential customer types, preferably including some marginal ones who can help you understand the core market drivers. If it's an international study, get to grips with local cultures so that you don't miss important nuances across markets.
Then develop a set of hypotheses
Make sure you establish some business-driving hypotheses to feed into the research design. Have a view about where you're heading even if you have to deviate along the way.
Avoid black boxes
Make sure the research is designed around your business and the issues you face, not someone else's. Don't let the statistics alone determine the solution and make sure you know what the statistical analyses are actually doing to manipulate the data, if only conceptually.
Be patient
Experiment with different segmentation variables and solutions. Make sure you assess each possible model thoroughly against some critical success factors, and agree these with the people who will actually use the segmentation.
Make sure it makes sense
Does it fit with what people told you qualitatively? Will the segments help the business move forward? Make sure everyone agrees which model is the most suitable.
Use your judgment
Balance theoretical accuracy with pragmatic usability and commercial reality.
Spread the word
Make the findings accessible and engaging. Spread the top line findings wide and provide clear signposting for those who want the detail.
Bring the segments to life
Go beyond the data and introduce the people behind the theory. Ideally, in person to really make them live and breathe. Consider running segmentation master classes, segmenting the stakeholders themselves and running regular closeness sessions where client meets consumer.
