Segmentation A Fresh Cut

SEGMENTATION
A FRESH
CUT

SEGMENTATION
A FRESH
CUT

CONTENTS

THE BEST OF INTENTIONS, THE WASTE
OF BUDGETS
THE ORIGIN OF THE SPECIES
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.
They end up being a waste of what can be a substantial
budget.
It’s time for change.

THE BEST OF INTENTIONS,
THE WASTE OF BUDGETS

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?
We think so.

ORIGIN OF THE SPECIES

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

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

CUSTOMERS ARE LIARS
As if you didn’t know, you can’t believe everything your
customers tell you...
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

WITHOUT ACTIVATION
IT’S JUST NOT WORTH IT

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.
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
t: +44 (0)20 3954 3032
e: info@thevalueengineers.com
www.thevalueengineers.com

LONDON

SAN FRANCISCO

CONTACT US
SAN FRANCISCO
440 A 9TH STREET
San Francisco
CA 94103
USA
t: +1 917 912 1517
e: info@thevalueengineers.com
www.thevalueengineers.com