What is Segmentation?

Segmentation means so many different things. For some organisations, a segmentation is a way of splitting out a campaign into distinct cells, each receiving different variants of a pack or message. For others, it’s a strategic planning tool used to prioritise and focus activity and investment, or anything in between. You’re all right, of course. The key is that for a segmentation to be successful, and there have been many unsuccessful ones, you must know how you will put it to use, and what financial return you can expect from using it. Just “needing a segmentation” isn’t good enough.

What can we do with Segmentation?

This is where we step in. Adroit run a segmentation workshop up-front to establish what stakeholders would like from it. Then, we pull together the best, and most complete, data-set we can from the many sources you may have. This could include your database, digital activity, geo-dems and research.

There are any number of statistical techniques we can use to do the segmentation. At one end of the scale, simple splits of the most discriminating variables can be surprisingly effective, especially in B2B (and remember, simplicity of design means simplicity of communication, and ease of understanding). At the other end of the scale, somewhere in a distant universe, our highly capable analysts use a variety of complex methods such as CHAID, Factor Analysis, Cluster Analysis, Logistic Regression and Discriminant Analysis to add real rigour to how we split your data into segments.

It is quite normal that the statistical rigour needs to be balanced against commercial common-sense and simplicity. A segmentation needs to be used across the business, and if it can’t be understood, it won’t be adopted.

Types of Segmentation

Colourful pen-portraits, infographics and personas add real insight to the segments, and allow everyone to grasp the level of detail they need to know. Research can add a further flavour. Charts, tables, bullets, images, photos and words all add their own bit in helping everyone understand each segment, and how they differ to the next. Accuracy and robustness of analysis is one thing; understanding and application is another.

Success of Segmentation

Success for us means that KPI reports will include the segmentation, that business strategy has been re-aligned to incorporate it, that staff will live and breathe the segments in corridor conversations, and that it forms part of the targeting or remuneration process. B2C or B2B, charity or utilities, direct or intermediated, you name it, we’ve segmented it.

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