Segmentation

The traditional notion of the mass market has significantly eroded, and old demographic stalwarts of behavior no longer accurately predict needs or behaviors. Coupled with an explosion in choice in many categories and ever harder to reach consumers a need to better identify and target high value customers has risen on the management agenda.

Segmentation needs not only identify who high value customers are, but should be actionable and enable a marketing approach to reaching and communicating with these customers. Ninah's unique approach to segmentation can help clients address key challenge such as:

  • Who and where are our most valuable prospects?
  • Which customers should we grow, defend, maintain and abandon?
  • How do we tailor products and brands to where the opportunity lies?
  • What is the potential market for new products?
  • How do we better reach and communicate with our high value customers?

Case Study Quality Prospects in Education

Situation

Board pressure to cut marketing budgets at a time of increased competition, and declining enquiry conversion ratios, demanded 'no wastage' and better targeting to ensure that the best prospects would still be reached despite the cuts.

Approach:

Using proprietary software, around 6m student records containing transactional, demographic, psychographic, behavioural and attitudinal data dating back seven years were analysed and mined to determine key performance characteristics. Central to the success of this exercise was the need to ensure that segments developed were of sufficient size, distinctiveness and accessibility to justify bespoke media targeting plans. The project was broke down into three stages:

  • Get a single view of the student database from the various and disparate data sets.
  • Data mining and discovery to determine which characteristics link most closely with 'Motivation to Study.'
  • Develop specific student segments capable of supporting actionable marketing plans and distinct creative messages.

Results

We helped the university to make the shift from a volume-based to a value-based business model, defining the drivers of 'motivation to study' which would increase likelihood of staying the course and sitting exams. Ultimately profitability comes from students sitting exams. Six student segments were established, containing different characteristics and study subject preferences, and varying 'Motivation to Study' scores. 20% of students represented 70% of the value, proving the hypothesis that the volume based approach was not the most cost-effective.