Customer Profile Audit
Capturing the attention of consumers is becoming more and more difficult. And winning their minds, hearts and loyalty – an enduring task
Where normal promotions, advertising and marketing through all mediums, online and offline, website, digital, email, social and traditional print and broadcast do manage to capture their attention for a little while, it is hard to touch them on a deeper level, making that personal connection that would catapult your brand into their lap, and hopefully make enough impact to stay there.
RDL uses market segmentation to zoom into markets and identify all the personas (avatars) with whom to make strong connections, then devise the right messages for each persona.
Without being able to identify who your brand is talking to, it is very hard to develop a marketing mix which will provide value to each prospective customer/client/guest.
As part of the situation analysis and audit – with the customer analysis, it is important to consider which specific consumer markets will be targeted, and how the firm will position themselves to serve each specific segment within this market.
Segmentation is where companies realise they can’t be everything to everyone. In order to be successful and to rise above the noise, firms need to segment the market and focus on the most relevant and profitable market segments.
Market Segmentation describes which geographical areas (countries, cities) and large groups exist to identify what consumer profiles to target best…
And where to position products according to the company’s overall objectives and goals. Product positioning presents the particular benefits of the product to a particular target audience (as identified in the segmentation process).
When larger target markets have been identified, market research and focus groups can help determine which audience to target, based on favorable responses to the product, and which product attributes are the most appealing to them.
Indepth research reveals consumer experience insights, product development approaches, suggestions for boosting customer loyalty, and other criteria not previously thought of.
Knowing this information helps with product differentiation, and later streamline marketing efforts and messaging that will drive more sales and profits.
Market segmentation creates subsets of a market…
Based on geographics, demographics, needs, priorities, common interests, and other psychographic or behavioural criteria to better understand the target audience.
Market segments are identified using characteristics such as:
- Product Class, differentiation and positioning
- Geographics (Locations, countries, regions, cities, neighbourhoods)
- Demographics (age, race, sex, education, income, employment)
- Generational (What each generation’s influences are and how to communicate with each Gen, It’s not either or, it’s them all – but how messages are formed differently for each Gen)
- Milieu (the social environment, social context, sociocultural context of a place or society and how it influences solidarity)
- Psychographics (personality, values, opinions, beliefs, world views, attitudes, interests, lifestyles, cultural touchstones, behaviour)
- Transactional (RFM) behaviour – how recently a customer has purchased (recency) how often they purchase (frequency) how much the customer spends (monetary)
- Online Behavioral targeting (predictions)
- Needs based analysis (jobs-to-be-done analysis)
- Firmographics (consider the features of organisational behaviour in detail as it globalises)
- Based on income (HENRYs + HNWI + UHNWI)
- Based on luxury infinity (grouped by all the different reasons why they buy luxury)
- Based on buying motivations (personal ideologies)
With segmentation and targeting, the researcher aims to understand the likelihood that a given respondent or segment will exhibit a specific desired behaviour.
In many cases, a predictive model may be incorporated into the study so that individuals can be grouped within identified segments based on specific answers to survey questions.
Companies rely on a variety of criteria to create custom types and categories of users which need to be:
- Well defined and not overlapping
- Match the price point of the product
- Aligned to the branding\marketing mix
Once the marketing segmentation has been completed, only then can you draft the value proposition which you will put forward to these segments…
What Is a Value Proposition?
Your value proposition is the core of your offering as seen against competition in the market to gain a competitive advantage. It clearly articulates why consumers would want to buy from your company instead of a competitor.
A value proposition isn’t just the product or service you agree to deliver to the customer, it’s the ingredient of your business that solves a problem or condition competitors can’t.
Your value proposition is your unique identifier.
IT IS NOT a slogan, or a tagline, mission or vision.
These types of copy are important to have, maybe but not always – but your potential customers and employees don’t choose one business over the other based on a high-level mission statement.
Your value proposition goes deep into the problems/conditions you want to solve for people, and what makes you the right one – and the best one with no other substitute – for the job.
OUTCOMES OF MARKET SEGMENTATION
- Customer intelligence (CI) – to build deeper and more effective customer relationships and improve decision-making
- New market insight
- Discovered high- potential growth markets
- Identified market entry points for disruptive technology
- Profiling – ideal avatars and personas created
- Segmentation criteria set
- All geographic markets identified that are included in distribution channels
- Region and city locations identified
- Target segmentations outlined
- Making deep connections strategies identified
- Targeting markets most profitable
- Brand’s current position in consumers mind identified
- Position itself in the consumer’s minds to be the more attractive option
- Total addressable market (TAM) – the revenue opportunity available for a product or service which helps to prioritise opportunities
- Messages drafted for each segment, in every distribution location globally
- Gained knowledge will inform predictive analytics
- What content would be best outlined for each message
- Informs other business decision such as new products
- Proactive product placement in the right markets
- Sometimes from the needs based analysis, new products are identified to fill gaps in the market