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Better Segmentation for Better Insights

Better Segmentation for Better Insights

Emily Izbicki and Kelly Jasper

segmented population of people

Steps to build marketing strategies on what matters most to your consumers

When brands want to connect more strongly with their customers to create tailored marketing strategies, one of the first things to do is segment the market. When done right, segmentation can provide a company cornerstone on which to build and grow—that true understanding of who makes up a customer base; a critical step in marketing’s golden rule of “know thy customer.”

Segmentation Overview

Traditional market segmentation is a strategy for dividing a broad target market into subsets of distinctive groups based on commonalities—customer similarities and what sets them apart from others. These shared traits, or differentiating factors, could include needs, attitudes, behaviors, and even basic geographic and demographic information. Understanding the customer at this more granular level allows brands to zero-in on priority segments and follow the ultimate Goldilocks principle—finding those “just right” opportunities to inform future marketing and positioning strategies.

Basing Customer Segmentation on Brand Goals

The question to ask before starting segmentation research is, “What are the customer segmentation goals for the brand or company?” Segmentation approaches have been around for decades, and there are different options out there on how to approach this process. Not only that, sometimes the research process tries to cover too many bases by asking too many questions to get the most information—more is more, right?

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Emily Izbicki, PhD, is senior research manager at AMC Global, an international custom market research firm specializing in product launch strategies.

Kelly Jasper is VP of strategy and insights at AMC Global, an international custom market research firm specializing in product launch strategies.