Segmentation Leads to More Effective Marketing, Increased Sales

  • How can we use the power of segmentation to understand customers better?
  • What products and services appeal to each customer group?
  • How do marketers create and design messaging to effectively reach potential customers? Most importantly, what is the message that reaches the most profitable customers?
  • Can we avoid the same-old segmentation results by using the same-old tools? Are there segmentation approaches that are guaranteed to bring new learning to the organization?

Market segmentation research is often sold by pointing out all the reasons for why the previous efforts have failed, since so many of these efforts do, in fact, fail.

in4mation insights prefers to focus on what makes a market segmentation study a success. As a start, our senior leadership team has over fifty years of experience working with, and improving, segmentation research.

Where does segmentation meet success?

Our clients, and all constituents, must be highly involved in the initiative. This means commitment to:

  • Partnering with us to identify the key segmentation variables that your organization can act upon.
  • Developing the right measures that will differentiate across segments and operationalizing them in a clear, cost-effective way.
  • Using state-of-the-art segmentation tools and models that avoid the pitfalls and empty promises of standard tools.
  • Together, choosing a segmentation solution that will be most effective for the organization.
  • Socializing the segmentation with the entire organization.
  • Teaching and mentoring colleagues on how to use the research to ultimately grow sales.

What We Offer Our Clients

Just about any data can be segmented to uncover the predominant patterns that exist. Standard tools will unfortunately find segments that will differ on the variables that defined the segmentation. But do the segments differ on key behaviors and outcomes of interest: like sales and purchase frequency?

Here are some ideas that we employ in a segmentation study...

  • Occasions for purchase:
    How does purchasing vary by occasion? What are the most frequent occasions? How do we sell in the more frequent usage occasions to grow the category and thus, our share? What products and consumers have more affinity to certain occasions than to others?
  • Behavior recorded on our database:
    Who are our customers? What communication tactics should we use to convert to subscribers? How do we increase subscription length? Customer lifetime value?
  • Category needs and product benefits:
    What are the most predominant needs? Are certain needs associated with premium products? With higher usage frequency? Do we have products in our portfolio that satisfy the most lucrative needs?

Opportunity Analysis Example: Close Cousins, Ring Leaders, and @ the Speed of Sound are Strong Potential Targets.

Targeting Considerations

Segment size and volume

Brand evangelism

Competitive Strength

Share of disposable income / budget

Barriers to entry and exit

Future purchases: existing and new potential products / services

Channels preferred

Revenue impacts

  • Price sensitivity

Brand affinity for our brand vs. competition

Cost to serve

  • Sales and marketing responsiveness
  • Lower transaction costs

Why in4mation insights?

Here are just a few of the reasons in4mation insights is the company to partner with for a segmentation initiative.

  • Experience: Over fifty years of segmentation-specific experience among our senior leaders in countries and categories around the globe.
  • Leadership: Steve Cohen, one of our founders, developed MaxDiff Scaling as a means of asking and measuring benefit importance. He is also the leader for ESOMAR's advanced segmentation workshop.
  • Flexibility: We will meet with all key constituents and be sure that we prioritize the needs of your organization. Your needs don't have to fit into our solution: our solution is customized to you.
  • Methodology: There are many ways to approach segmenting data but our preferred method is Latent Class Segmentation. Using Latent Class allows us the perfect balance between science and art by giving us the tools we need to decide upon the best solution for our clients.

Finding Segment Members in Future Research

One of the failures of current segmentation practice is the inability to develop robust tools to find segment members in subsequent research that are as short as possible. Too many existing tools require 15, 20, 30 or more questions to "type" a person: wasting valuable time and space in the new study.

Having years of experience in this area, we have developed a new method for deriving a typing tool, which delivers more accuracy than existing approaches, yet asks a customized set of fewer than 8-10 questions per person.

These typing tools can be delivered to you for use in recruiting participants for subsequent qualitative research, for classifying people taking a new survey, or for use in typing people who come to your website. The software delivered is customized to your specific needs.

Client Success Story

Want to learn more? Check out our recent client success story on Consumer & Market Segmentation.

Read More


Read Steve's award winning paper on Maximum Difference scaling and segmentation.

Click here to download


Read Steve's award winning paper on Maximum Difference scaling and segmentation