Segmentation 2.0

TVE2020

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SEGMENTATION

A FRESH

CUT


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SEGMENTATION

A FRESH

CUT



THE BEST OF INTENTIONS, THE WASTE

OF BUDGETS

THE ORIGIN OF THE SPECIES

CONTENTS

A WHOLE NEW WORLD NEEDS A

WHOLE NEW APPROACH

RICH DATA, NOT JUST DATA RICH

CUSTOMERS ARE LIARS

WITHOUT ACTIVATION, IT’S JUST NOT

WORTH IT

CONTACT US



THE BEST OF INTENTIONS,

THE WASTE OF BUDGETS

THE BEST OF INTENTIONS

The best segmentations are a tool for business planning.

They are inspirational.

They are applied and used.

They drive the bottom line.

When they do this, they are a valuable investment for

growth...



THE WASTE OF BUDGETS

Too few fit this description.

Too many come in wide of the brief.

THE BEST OF INTENTIONS,

THE WASTE OF BUDGETS

They end up being a waste of what can be a substantial

budget.

It’s time for change.



THE ORIGIN OF THE SPECIES

Traditional segmentations were developed for classic F.M.C.G. brands and to link to old

media planning tools like TGI.

Many segmentations are still modelled from demographic data alone.

But hang on, isn’t that the same data that all your competitors will have too?

Will you really get something tailored and inspirational for your brand?

Aren’t your customers more than their ages and postcodes?

ORIGIN OF THE SPECIES

We think so.



And some segmentations are built on an entirely attitudinal analysis, but without a

robust link to behaviour. They consequently aren’t bought into by the everyone in the

business. For some teams, like CRM or Retail, they’re just not practical or useful.

We believe you shouldn’t waste your money on something that won’t be used and

doesn’t deliver.

You need something to inspire, you need something that will be used, and you need

something relevant for today’s world and its challenges

We think it’s time to move on and let the old segmentation approaches join AIDA,

the USP and the notion that brand extension dilutes your brand in the great marketing

graveyard in the sky.

ORIGIN OF THE SPECIES



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A WHOLE NEW WORLD NEEDS A WHOLE

NEW APPROACH

The world has changed, there is a whole new brandscape

out there, media has exploded and is on a different

wavelength and customers are more savvy. Beliefs, attitudes

and behaviours have all changed.

Many aspects of research have mirrored this evolution so

why hasn’t segmentation moved on more?

Why is the industry still peddling a model built for the old

world, when F.M.C.G. was king, where they sold through

retailers and where there were only 4 TV channels?

A WHOLE NEW WORLD

NEEDS A WHOLE NEW

APPROACH



There is a new generation of brands that have appeared

from nowhere and play to a different set of ‘rules’.

A new approach to segmentation needs to recognise that

these brands don’t always fit the old models.

A new approach to segmentation needs to be designed to

work for them.

It needs to be appropriate for tech, for content, for travel,

for leisure and for finance brands.

A WHOLE NEW WORLD

NEEDS A WHOLE NEW

APPROACH



RICH DATA, NOT JUST DATA RICH

RICH DATA,

NOT JUST DATA RICH

One thing that unites these new-generation brands is that

they are rich in customer data: up-to-date, even real-time,

and as a ‘green’ agency we know the value in recycling

and upcycling what we can.

So, our new approach starts by leveraging our clients’ most

valuable asset; their own customer data. We use advanced

analytics to understand which dimensions really do drive

out meaningful differences between groups of customers,

and above all, which of these dimensions can be reliably

self-reported by consumers.

This gives us the behavioural building blocks to include

in our questionnaire to enable accurate database linkage

further down the line. It sets the segmentation up for

success right from the very beginning.

We then survey consumers to build out from this

understanding to create a total market view beyond the

confines of our client’s databases, including motivations

and attitudes, as well as behaviours. A truly rich data set.



CUSTOMERS ARE LIARS

As if you didn’t know, you can’t believe everything your

customers tell you...

CUSTOMERS ARE LIARS

Customers’ claimed behaviour can and does lie. ‘Claimed’

behaviour is just that… claimed.

People over-claim, under-claim, forget to claim or just don’t

want to claim. Others claim what they think you want to

hear.

It has long been said that actions speak louder than

words which is why our approach segments people using

a combination of motivations, attitudes and crucially,

behaviours.

After all, it ain’t what they say, it’s what they do.



As we’ve handily already established which behavioural

dimensions have the best chance of being accurately selfreported,

it’s at this point we can close the loop and model

our rich and inspiring segments onto client databases.

It is this 360˚ approach that makes our segmentations

truly usable: the power of a targeting tool imbued with the

richness that the motivations and attitudes provide.

Together this enables teams to know not only who to target,

but how to talk to them.

CUSTOMERS ARE LIARS



WITHOUT ACTIVATION IT’S JUST NOT WORTH IT

Marketers know that features are important, but delivering

benefits is better. Customers buy benefits.

Likewise, the true value of research is realised in its use,

its application. You want robust research, but you want

solutions that will be used even more.

Everything we do is geared towards delivering a

segmentation that isn’t just theoretically actionable but is

used day in, day out right across the business. We start

with the end in mind to help ensure our segmentation is

embedded within the business and integrated with existing

processes.

WITHOUT ACTIVATION

IT’S JUST NOT WORTH IT



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In short, we are focused on ensuring that it is used.

We’ve been using our new approach with clients like

PlayStation, L&G and River Island.

WITHOUT ACTIVATION

IT’S JUST NOT WORTH IT

While we think the solutions are elegant and statistically

robust, success for us is when they are understood,

integrated and, most importantly, used to help drive change

for these brands.



IF YOU WOULD LIKE TO FIND OUT MORE

ABOUT OUR NEXT-GENERATION APPROACH TO

SEGMENTATION OR OTHER ASPECTS OF WHAT WE

DO, CONTACT ONE OF OUR THREE OFFICES.

CONTACT US

LONDON

The Value Engineers

12 Flitcroft Street

London

WC2H 8DL

United Kingdom

NEW YORK

264 W 40th Street

Floor 16

New York

NY 10018

USA

LOS ANGELES

830 Traction Ave

Suite #3A

Los Angeles,

CA 90013

USA

LONDON

t: +44 (0)20 3954 3032

e: info@thevalueengineers.com

t: +1 646 837 8151

e: info@thevalueengineers.com

t: +1 917 912 1517

e: info@thevalueengineers.com

www.thevalueengineers.com Twitter: @valueengineers



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LOS ANGELES

NEW YORK



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