Six key steps to accurately targeting your audience, and what we can do to help.
1. Target customer advocates to achieve goals.
One of the goals of market segmentations is to target people most likely to become satisfied and enthusiastic customers of a company and its products. Clustering an audience allows for reaching most interested groups with precisely focused marketing messages. Properly designed and executed targeting segmentation helps companies reach challenging business goals and optimize spending for advertising, even in the most competitive categories.
2. Cast a wide net.
To design and execute a targeting segmentation, Big Village utilizes a comprehensive approach combining multiple data sources and multiple analytical techniques and tools.
The first stage is a traditional quantitative segmentation based on a robust sample of the broadest population of interest. This sample is typically from the General Population (GenPop) and clusters consumers on a wide range of variables. Demographics, geographical and psychographic variables can be used for clustering, but consumers’ behaviors and attitudes are the focus of many modern market segmentations. Among behavior variables, researchers use purchasing habits, product usage, interests in brands and loyalty for segmentation, along with benefits and values sought in a product, such as price, quality, convenience, status, etc. Emotional and cognitive attitudes could also be an important part of a high-quality segmentation.
3. Hone in on reaching the best options.
After a clustering solution, or often a few preliminary clustering solutions are generated, they are evaluated to determine the best option and the best groups for targeting. A solution in general should be balanced and actionable, it should provide sufficient differentiation between the clusters, and each cluster should be clearly defined.
The next step is to evaluate each segment in the solution and identify the best options for targeting. The segments for targeting should be large and profitable enough. It is equally important that the company can reach these segments and offer products or services to satisfy their needs. Another important factor is the competition in the segment. A large and profitable segment could attract a lot of competition, reducing ROI for the company.
4. Tag your customer database.
The key step for a targeting segmentation is to understand its connection with the company’s current customer base. It helps to better assess segment potential for successful targeting. A natural share of a company customers in the GenPop might not be sufficient to make conclusions, recommendations or optimize targeting. It is beneficial to collect an additional sample of current customers possibly utilizing company databases. If the sample is large enough, an independent customer segmentation can be built and used in the ensemble to inform the GenPop clustering. If the customer sample size is not enough for a robust segmentation, it can be classified to the GenPop clusters. This provides important information about the customers’ distribution across the segments and allows projection of current consumers’ preferences and attitudes to potential customers in the GenPop segmentation. Enabling us to accurately identify priority segments for targeting and refine the targeting strategy.
5. Gain in-depth understanding of your segments.
The main step of identifying and prioritizing segments for targeting can be followed by in-depth qualitative research using the Big Village Digital Hives Online Communities to develop detailed segment personas and refine messaging for each segment to be targeted by the company. Digital Hives have the capability to screen and recruit hundreds of respondents specifically representing the segments selected for targeting. Qualitative Digital Hives can be launched in days and will include multiple engaging tasks to capture the stories, details, and moments of the customer journey. Respondents will co-create, test, and sharpen messaging for every segment. The Digital Hives format is flexible and fits the needs of each segmentation.
6. Understand media habits to efficiently reach segments.
To complete a targeting segmentation, Big Village offers Audience Intelligence, a fully integrated and holistic media planning and activation platform. With the help of Audience Intelligence, companies can understand how each segment consumes media and what would be the most efficient approach to activation and targeting.
Contact us to assist in your market segmentation and audience targeting today.
Written by Faina Shmulyian, Vice President, Insights at Big Village