A Segmentation Refresh – Is it the right time for your organization?

A Segmentation Refresh – Is it the right time for your organization?

A Segmentation Refresh – Is it the right time for your organization?

Segmentation research is a shared passion and expertise here at Catapult – throughout our careers we have created, worked with, and refreshed well over 30 segmentation solutions. In an earlier blog we covered the core elements of what makes a segmentation successful, but how do you keep it successful? From our collective experience, we have picked up on the cues and signs of when a segmentation is in need of a refresh (or even needs to be thrown out), instead of being dragged along by an organization for just one more year. Instead of hoarding this knowledge, we decided to share three of the larger signs that it might be time to refresh an organization’s segmentation solution.

ENTERING NEW MARKETS

When an established organization is a master of their craft and understands their current customers well, but then decides to expand into an adjacent market, this is when we start to see old ideas and segmentations being applied to a new category. New markets, new products, new offerings, and new customers usually mean new research is needed to understand them – segmentation solutions included. The investment in entering new markets with new products and services is tremendous, the key is to also recognize that new research needs to be a part of those business strategies so you can hit the ground running.

innovation

TIME PASSING

A great segmentation will stay relevant for an organization for about 5 years. We understand that segmentations are expensive, time intensive, and draining on those involved when done correctly with no corner cutting – because of the investment, its not uncommon for an organization to squeeze it for all it’s worth, for as long as they can. The effort, skill, and collaboration put into a segmentation determines how quickly its twilight years approach.

A CHANGING WORLD

We’ve seen a handful of times where an existing segmentation starts performing abnormally. For example, your star segment represented 50% of the market, but recent research is now showing them to be more like 25% of the market. What happened? Assuming the shift is real (not a research error), something is clearly happening in the market (think about how the MP3 player market felt in 2008 – a full year after the introduction of the iPhone, or how the introduction of mobile ordering changed consumers’ QSR ordering behaviors and attitudes). A great segmentation would suddenly need an immediate refresh due to a major shift in the market and rapidly changing consumer preferences. If you don’t refresh or update your segmentation, you run the risk of it not being relevant or effective in the new, changing world.

WRAPPING UP

Highlighted here are just three of the many signs that point towards the need for a segmentation refresh or overhaul. People are constantly in flux when it comes to their purchase and shopping preferences – do you still buy the same products in the exact same way as you did 5 years ago? 10 years ago? You probably don’t and that’s expected because our world is constantly evolving (technology advances, new services, etc.) and as we move through life, our attitudes and behaviors are all impacted by every external factor imaginable (and unimaginable). But with so much variation within us, there is one thing that never changes: we will forever be just like another group of people with similar needs and desires waiting for our needs to be met.

 

 

Andre Barroso

DIRECTOR, INSIGHTS & INNOVATION
CATAPULT INSIGHTS

Beyond the Page – Qual’s Role in Segmentation

Beyond the Page – Qual’s Role in Segmentation

Beyond the Page – Qual’s Role in Segmentation

We’ve been considering a change of schools for my kids – a decision that any parent can tell you is not taken lightly. Interestingly, between my soul-searching and conversations with other parents along my journey has me reflecting on the segmentation work that I’ve done. What I’ve learned along the way is that humans are curious creatures, and we’ve met families at school that are similar to ours in so many ways, each making unique decisions in the best interest of their households. At one level our households appear so similar: how we live, where we live, the age of our kids, and decisions we make are much the same on paper. Yet, the motivations and experiences that weigh into those decisions often become the difference in which direction we will go. This is why it’s so important in segmentation work to go beyond the page and truly understand the human experiences within each segment in order to connect on a meaningful level.


In the research and consulting world, the most powerful tool we use to build that type of empathetic understanding is qualitative research, which comes in many forms. And, in keeping with Catapult’s “approach agnostic” promise, I’ve helped clients establish empathy for their customers in many ways: ethnographies, focus groups, in-situ, in-homes, shop-alongs, workshops, and the list goes on. But at a high-level I believe there are some moments in a segmentation program when the role of qualitative is undeniably important.

qual segmentation

Foundational

Segmentation is as much art as it is science, and the work done by statisticians to create segments that are meaningfully distinct is no small feat. Our own statistician, Tom Rosholt, is masterful at the process, and I haven’t met more than one other through my career who could meld the math with people’s behavior in a way that translates to the world our clients operate in. This all starts with a foundational base of knowledge before we have a clue about what datapoints the segments might hinge upon. Casting the net wide, in the truest sense, this involves exploring the space where consumers exist to begin getting to know them through conversation and observation.

For many years I worked with Gwen Ishmael who often likened segmentation projects to dating. She said this foundational qual is much like the first date in that you don’t know anything about who you are about to meet, and it’s an important first step in the long process of understanding what makes them tick. For someone like Tom, using this foundational input to build a strong segmentation survey is an invaluable boost to his piece of the puzzle.


Personas

After working closely with clients to collaborate and iterate on the segmentation solution itself, it’s time to dive deeper to discover how to engage with each segment. Post-segmentation qual research has long been used to create personas, which are the personified likenesses of each segment meant to give businesses a tangible reference point of who they are as people. In practice, this brings segments to life by reminding us of the human factors and experiences that make our behaviors somewhat predictable.

Said another way, personas make us think of real people in the world whom we’ve met. Personas help us think through how those real people will interpret the messages they encounter, react to ideas that are presented, and the lens through which they view the world. Think of it as the fourth or fifth date when you really get to know a person on a new level, and now you’re able to reasonably predict how they will react to what you say and do.


Pivotal

One of the most curious things about people is that they grow as the world around them changes and evolves. This is why segmentation work has a shelf-life, but its dynamic nature doesn’t mean there aren’t ways to prolong its usefulness. Typically, a client uses segmentation to target marketing efforts as their business rolls out new solutions. In a traditional sense, this involves inclusion of certain segments in on-going research efforts to test concepts, develop messaging, or determine marketing strategies that will resonate.

Something Catapult likes to do during these on-going research efforts is mix in a few known respondents, often the very people the personas were formed from, to get a read on things through a familiar lens. By seeing how real people who embody and represent each segment react, our clients are able to evolve their understanding of consumers and evolve the persona as our knowledge base grows.


There’s no doubt that factors driving, and often predicting, a person’s actions can be statistically determined by looking at who they are, what they’ve done in the past, and the conditions of their present. But understanding the context of why people think, feel, and act the way do is what elevates a strong segmentation beyond the page and into the real-world where real decisions are made.

 

JUSTIN SUTTON

CO-FOUNDER
CATAPULT INSIGHTS

 

Building Effective Project Teams

Building Effective Project Teams

Building Effective Project Teams

It’s often advantageous for researchers to have little existing knowledge on a topic area, allowing for fresh mindsets free from predisposition. It’s even more beneficial when teams are able to blend that blank slate curiosity with more seasoned perspectives, synthesizing the two into more powerful insights. This typically happens when client stakeholders work closely with research suppliers, but what happens when an organization is expanding beyond their everyday competencies? Sometimes there’s still a level of subject matter expertise needed to lend context to the unbiased insights consultants like Catapult deliver.

We have many examples of this sort of situation, but most recently it happened when we were helping a client expand into a new category. Initial qual work included some subject matter expert interviews, which indicated a strong multicultural nuance to the likely target market. We recognized that the project team was lacking representation from these target groups, making it clear that the right thing to do would be partnering with the appropriate people to ensure complete understanding of the consumer needs we would discover through the research.

That’s when we turned to Sequoyah Glenn, Catapult’s multicultural consultant and all-around wonderful, sharp-minded person. Sequoyah brought a wealth of skills and experience to the project, including marketing, moderation, and relevant beauty industry expertise which helped her authentically connect with consumers in personal care discussions. On the backend, we worked closely with her to analyze both qual and quant data to understand finer distinctions between Black, Hispanic, and non-Hispanic consumers. This included parsing through the underlying cultural drivers impacting perceptions and developing inclusive messaging and engagement strategies. 

Team Building

From Sequoyah: “Working with the team at Catapult has been incredibly collaborative. Jill and Justin know their stuff but also recognize the strength in building upon what we are collectively. This was a challenging and complex project, and their spirit of partnership and dedication to forming a strong, tailored team is what made the difference in the success of the work. As a consultant, working with a human-centric company has made a difference in my own career journey and how I’ve shown up for myself and others since meeting them in 2022.”

subject matter expert

Catapult always strives to bring together the optimal team to propel our clients into a position of success, even when that means partnering beyond our own four walls. In the end, the work is not about us, it’s about our clients and the customers they’re trying to serve.

Get to know more about Sequoyah on her website and drop us a line to see how Catapult can help you solve your business problems with our dynamic teams.

JUSTIN SUTTON

Co-Founder

Home Improvement Pros feel the pressure of rising costs

Home Improvement Pros feel the pressure of rising costs

Home Improvement Pros feel the pressure of rising costs

We’re back with our Home Improvement Professional Pulse Survey and this time we wanted to check in with Home Improvement Professionals on a few things:

1) Was the shift we saw in January where fewer Pros were concerned about the impact of inflation and supply chain issues on revenue and staffing issues a trend or a blip?

2) What are the biggest challenges Pros are facing right now?

3) What qualities do Pros look for in a brand?

In addition to these key topics, we also pressure-tested Full Circle’s InstaConnect®, their premium programmatic solution for capturing expert networks. Our aim was to see if we could reduce our cost per interview while still gathering high-quality, reliable data from true Home Improvement Professionals. 

What did we uncover? In short, some things are leveling out, but new complex cost pressures are plaguing Pros. Concerns about inflation and supply chain issues impacting revenue are up slightly from earlier this year, but still much lower than 2022, indicating that perhaps these concerns are stabilizing. 

innovation

There seems to be a “new normal” for Pros which entails expanded competition and high pressure on costs. While fewer Pros say they are concerned with staffing issues, they are also recognizing more competition and find it challenging to find skilled labor. This may indicate that competition could be coming from a mix of skilled and unskilled “amateur” laborers. Rising material costs driven by inflation are also a big challenge from Pros, and many feel it is impacting the amount of jobs available and homeowners’ willingness to pay for work. Perhaps Pros are seeing their competitors balance out the rising cost of materials by mixing in the cheaper labor of unskilled laborers.

Read on to find out more…

Concerns about inflation, supply chain, and staffing are strikingly lower than 2022, and likely leveling out.

While we see a small uptick in inflation and supply chain concerns vs. January, close to half as many share these concerns as we saw in 2022. Expected staffing issues continue to decline and are nearly undetectable. This could signal a trend in Home Improvement Pros feeling staffed well enough that it won’t negatively impact their revenue. Or perhaps they have just found workarounds for a chronic staffing issue, which could include a mix of skilled and unskilled labor.

Inflation, supply chain and staffing were top of mind issues in 2022, but in 2023 we dove a bit deeper into the challenges Pros are facing today and found the impact of inflation is a common thread. Even though only a third of Pros expect inflation to impact their revenue in the next 12 months, many attribute the root cause of their top challenges to inflation.

The rising cost of materials is a key challenge for Pros, and many tie that back to inflation.

“Rising costs in painting and construction materials.” – Painter

“I think the main problems facing business is the high increase in products prices, making it hard to do business.” – Plumber

“The biggest challenge that I am facing currently is the rising cost of materials due to supply chain disruption and inflation, this has caused a drastic reduction in revenue over the past 12 months.” – Builder

Competition for jobs and an overall lack of available jobs is another top concern for Home Improvement Pros.  The hypothesized cause for this challenge varies by Pro, but some attribute it to overall shifts in the industry (more Pros to compete against), while others tie it back to inflation causing homeowners to postpone or rethink projects.

The biggest challenge right now is the lack of new clients”- Rising costs in painting and construction materials.” – Framer

Lack of work due to increased prices and inflation.” – Handywoman

The biggest challenge that I’m facing in my industry is the tough competition. So many people have come to this industry.”- Builder

Pros look for good prices, reliability, and trust when selecting a brand for supplies.

 

Unsurprisingly, “good prices” (64%) is top of the list of qualities Pros look for when selecting which brand of supplies to purchase. Even though fewer are worried about inflation impacting their revenue than in 2022, the cost or materials is a top worry and challenge for many Pros.

Construction materials have become whopping expensive over the last few years and the cost is still rising.”
– Roofer

Yes, the biggest challenge I’m facing right now is the purchase of inflated price of paint.” – Painter

Some even express concern over how this will impact their clients’ ability to afford the higher material prices, while others are doing the mental math of the cost – quality trade-off. 

Prices of products have gone up and our clients are becoming unable to keep up with the pricing. – Builder

Actually, the biggest challenges I face in the industry right now is getting effective products for a cheap amount.” – Plumber

Trust is another key quality Pros look for in a brand for their business supplies (59%). However, some of the attributes more traditionally associated with establishing or supporting trust for a brand rank lower — being an industry leader, being around for a long time, being well-known. Instead, it seems Pros are putting more focus on product related attributes which could signal trust, like high quality materials, durable and reliable products, and having a focus on safety. Instead of being about the brand overall, it’s about the execution of the brand in its products.

But does this signal that perhaps the brand itself is less impactful to purchase decisions? Likely not since many of the more traditional brand attributes may be assumed when you become a trusted brand (industry leader, well-known, etc.). This could also open the door for newer brands without a long history to successfully enter the market with strong messaging around durability and reliability.

Overall, Home Improvement Professionals are continuing to navigate a complex marketplace and overcome a variety of challenges. Brands who can support them by recognizing their challenges and providing solutions to help them overcome those challenges will likely become their trusted partner for supplies and enjoy their loyalty for years to come.

The final insight we learned from this wave’s Professional Pulse Survey centers around the cost of executing research with Home Improvement Professionals.  The cost of everything has been going up lately, and market research costs are no exception. We know many of our clients are trying to do more with less, so we used this wave’s survey to explore some options to help them do just that. In previous waves of the Professional Pulse Survey, we offered a hefty incentive to Pros that was in line with the going rate in the industry. This wave, we reduced the incentive by 60% and found that it did not impact response rates, data quality, or increase our time in field.  This means InstaConnect could allow us to significantly reduce costs to our end clients while still collecting clean, quality professional data – we could do more, with less.

Drop us a note at [email protected] if you’d like to learn more about what Home Improvement Professionals are doing today and expecting going into 2024, and how your brand can shift your strategy to keep up.

 

Jill Miller

CO-FOUNDER
CATAPULT INSIGHTS

 

About the Survey

To provide the greatest value to its clients, Catapult Insights invests in consistent consumer research, especially within hard-to-reach audiences. For this Professional Pulse Survey, Catapult tapped online sample provider Full Circle Research, the industry leader for high-quality data, programming and hosting. This wave of the study was conducted from October 12 to 13, 2023, and captured insights from 100 home improvement professionals in trades across the industry spectrum. To learn more about the survey, contact Catapult Insights at [email protected]

About Full Circle Research

Named the 2021 Panel Company of the Year by The Marketing Research and Insight Excellence Awards (powered by Quirk’s), the first US-based panel certified to ISO, GDPR-compliant and co-founder of the global ISO awareness campaign #QualityForAll, Full Circle is the industry’s preeminent provider of high-quality online insights. The company’s award-winning survey experience HoNoR® marries advanced tech, flexible community strategies and unparalleled quality controls to deliver immediate access to proven-purest data, whether via its vibrant panel of millions or InstaConnect®, its premium programmatic solution that captures expert networks. A staple on Inc. 5000’s Fastest-Growing Companies (2017-2023) and one of the highest-scoring businesses on Inc.’s 2022 Best Workplaces list, Full Circle’s foresight and agility are a direct result of a uniquely consultative approach delivered by diverse industry veterans. To learn more, visit iLoveFullCircle.com.

About Catapult Insights

Catapult Insights in an outcomes-focused insights and innovation consultancy that uses research as a foundational tool to help brands grow, evolve and future-proof their businesses. Catapult creates customized creative solutions to tackle specific needs, adapting their approach to answer clients’ biggest questions.  Their robust suite of research methods and consulting approaches gives clients an accurate picture of people today: their needs, motivations and behaviors, as well as a predictable view into the future.

Segmentation Q&A with Catapult’s Statistical Expert, Tom Rosholt

Segmentation Q&A with Catapult’s Statistical Expert, Tom Rosholt

Segmentation Q&A with Catapult’s Statistical Expert, Tom Rosholt

In our last segmentation blog I outlined Catapult’s best practices for a successful segmentation. But, there’s one critical best practice that deserves its own post: get yourself a stellar statistician to be you’re analytical partner on every segmentation.

Catapult’s statistician is Tom Rosholt, and I recently sat down with him to chat about all things segmentation.  

Catapult Segmentation

Jill: Thanks for chatting with me about segmentation today. How long have you been doing segmentation analysis?

Tom: Longer than I’d like to admit – my first exposure was over 20 years ago! As an applied statistician, I’ve been fortunate to have encountered a LOT of analytic techniques across a wide variety of industries over the years. Segmentation is among the things I’ve enjoyed most because it can fundamentally change a business. I’ve had the privilege of being involved in segmentations for clients in a variety of industries including automotive, fashion, CPG, food & beverage, and durable goods, to name a few. 

Jill: What do you love most about segmentation? Which part is your favorite?

Tom: I love the interplay among the business/industry, consumer/customer, and research/analytics experts. You can’t do segmentation well without a high degree of collaboration, and that’s what really floats my boat. You become a team that is greater than the sum of its parts, and when you have the right people on the team, it can result in something really special. 

My favorite part of the process is identifying the essence of each segment and helping to come up with a catchy name for each. You thought I was going to say the math!

Jill: I really did! Frankly, I find naming to be one of the most challenging parts of a segmentation. 

Tom: It may seem counterintuitive that a math nerd likes the challenge of coming up with catchy name. However, names matter because they make it easier to “hold onto” an idea and they elicit a pre-conscious emotional judgment. The right name can make a difference in helping others to understand and embrace a segment (or any idea, really). I love the challenge of taking something as complex as a segment and giving it a pithy and concise label. It is not unlike the statistical process where we represent a complex thing like a data set with a simple thing like a bar graph. 

Jill: What was your most successful segmentation and why do you think it was such as success?

Tom: I advised on a segmentation in the automotive space several years back. What I really loved about this particular project was the collaborative nature of it. We had a couple of statisticians, a crackerjack project manager, several category experts, multiple analysts, you name it. I liked how many different people were involved.

On a sports team, there is a role for every player, and if anyone is missing, your chances of success are diminished. Each player brings something vital to the endeavor, and each person on the automotive segmentation team was fully present and engaged. They brought deep knowledge for their area of expertise, and we were able to work as a team, fitting together like pieces of a puzzle. 

Jill: What was the most challenging segmentation you’ve ever been a part of and what did you take away from that experience?

Tom: It was many years ago, but I remember it well. It was in a category I don’t know particularly well, and it did not go well because it was a less collaborative process. The client had a very full plate and very little experience with segmentation, so we were missing a critical component of our team – a category expert. They lobbed the requirements over the wall to us to see what we could do with limited input from their team. The role of category expert was impossible to fill by a team of researchers and statisticians who were novices in the category. Ugh. 

Jill: That sounds rough. What did you do?


Tom: Well, it ended up being an incomplete piece of research. We found a few useful nuggets but ended up leaving a fair bit of it on the table.  While it was a painful process, I learned a lot from it. 

Jill: What was your biggest learning or takeaway from this project?

Tom: Start with the end in mind! Always start a segmentation project with a clear understanding of what success will look like at the end, how it will be used, and how it will impact the client’s business. Getting that information up front and setting expectations about client involvement from day one makes a world of difference. I’m super militant about it now (perhaps irritatingly so) and have not repeated that mistake.

Jill: Speaking of mistakes, what’s the biggest mistake you see researchers make when creating a segmentation?

Tom: The biggest sin, for research in general and segmentation specifically, is clinging to a preconceived notion despite evidence to the contrary. As a statistician, I put more stock in what the data say than in any individual opinion. Personal bias is natural and isn’t always a bad thing – when driven by experience, it can actually lead to some useful questions/answers, but it can be tricky to avoid having the tail wag the dog. I encourage my clients to listen to the data and let it guide us rather than trying to steer the analysis in a particular direction. When you do the latter, you run the risk of simply confirming a bias rathing than uncovering some new truth. That’s a colossal waste of resources and potentially dangerous for the business.  

Jill: Do you have a favorite statistical technique, methodology, or analysis for segmentation?

Tom: No, I do not. Generally speaking, I am method agnostic. In my opinion, a good statistical model is one that works. I typically recommend that segmentation data be analyzed using multiple techniques, and then make a determination as to what makes sense mathematically, holds up to accepted diagnostic measures, and resonates with the client content experts. It’s not at all uncommon to recommend a solution that isn’t the best from a strict statistical standpoint but makes the most sense to the client in the context of their category and business.

Jill: If you could give one piece of advice to a researcher on the client side who is starting off with their first segmentation, what would it be?

Tom: Always keep these three rhyming words in mind: 

Elevate the level of visibility of the project. Make sure that stakeholders are involved at the beginning, middle, and end. You need involvement and buy-in from everyone throughout the process, otherwise it may look like a “black box” solution, and adoption by the organization can become a challenge.

Collaborate. Assemble the right team and ensure that everyone is playing their role. The team, at the very least, should include the subject matter or category experts (often the client team), one or more statisticians, a project manager, and an analyst or two. Then work together and toward the same goal. 

Communicate. Segmentation is not a set-it-and-forget-it kind of thing. There should be ongoing communication throughout the process with the core research team and stakeholders. You need to be sharing things like ‘this is what we are doing, what we’ve learned, and what’s next. We’re on version 16 of the questionnaire. We’ve explored 12 segment solutions.’, etc. Expect to “live with” your team part-time during the project. There aren’t that many unilateral decisions to be made in a segmentation – you will enjoy the best outcome by sharing the decisions, the knowledge, and the success.

While every conversation I have with Tom is informative, productive, thought-provoking, and fun, this one got me thinking — perhaps I should rephrase that final segmentation best practice from “get yourself a stellar statistician” to “get yourself a Tom.”  Drop us a line if you want to learn more about our approach to segmentation or how we can help you understand your customers in an actionable and meaningful way. 

Jill Miller

CO-FOUNDER
CATAPULT INSIGHTS

 

Catapult’s Core Elements of a Successful Segmentation

Catapult’s Core Elements of a Successful Segmentation

Catapult’s Core Elements of a Successful Segmentation

Over the course of my career, segmentation has become one of my specialties and something I’m very passionate about. I think it originally started from a place of curiosity both from a human behavior and statistical science point of view. I found it so interesting that through deep human understanding and some very fancy math, we could create these interesting and distinct groupings, and then use those groupings to drive product development, business strategy and marketing plans. 

After many years and many segmentation studies across a variety of industries, my passion and interest hasn’t waned. In fact, I think it’s only grown as we’ve developed the Catapult approach to segmentation where we infuse our statistically driven process with a healthy dose of art and fun to ultimately land on an impactful and actionable solution. Everyone does it a little different, so here’s how we do it to ensure we create successful segmentation programs for our clients:

Begin with clearly defined goals.

Clearly defined goals and planned uses for the final segmentation are paramount to the success of the project. We start off by outlining who within the organization will use the segmentation (e.g., marketing, R&D, innovation, purchase channel teams, etc.), how they want to use it (e.g., marketing strategy, product development, etc.), and what they want to know. While this seems like an obvious first step, we’ve seen instances where this is just assumed to be known (when in many cases it is not), so to avoid that we always start our segmentation programs with an in-depth working session with all key stakeholders.  This allows us to optimize the design around what we want it to ultimately do and for whom. We get this right because it’s a must.

Choose the right type of segmentation. 

When it comes to segmentation, one size doesn’t fit all. Person-based approaches work well for many scenarios, but categories with frequent engagements where needs, behaviors, and attitudes vary by interaction often require an occasion-based approach to get to the most actionable and targetable solution. Knowing when and why to choose person- vs. occasion-based approaches (and how they can intermingle) matters. 

Catapult segmentation

Humans represent an X-factor. 

People are curious creatures. Studying and taking into account their multidimensional and multi-faceted existence is necessary to understand and predict why they do what they do. We firmly believe that a strong segmentation solution must consider a variety of dimensions in order to really capture the true essence of people and how they approach the category. 

Collaborate and iterate as one. 

Segmentation without actionability is of no value. And segmentation should never be a black box process. We want our clients to understand, use, and rely on this work, so we work together to devise the right way to approach, analyze, and socialize segmentation. To reach these ultimate goals, we plan high-touch projects that keep client stakeholders engaged and immersed throughout the segmentation process. This includes reviewing solution options, brainstorming alternatives, and always keeping our end goals in mind. This process ensures we end the program with a solution of enduring value that our clients feel good about and can immediately act upon.  

We are nothing if not for our past.  

We believe it is important to honor past segmentations while also looking forward. Understanding the world, our client’s business, and previous segmentations help us build bridges between a new segmentation, what brought our clients to this moment, and where we’ll go tomorrow. To do this, we always start our segmentation programs by reviewing relevant research and any previous segmentation solutions with the goal of understanding what worked well, what didn’t, and how comfortable the organization is moving into a new solution. We use this as a guide for how to bring the team along to the new solution while still honoring what came before. 

Science + Art brings actionability.  

The perfect segmentation on paper must translate to the world we live in, otherwise it’s imperfect. Creating a statistically sound segmentation that checks all of our analytic boxes is one thing, but making sure it also helps our clients achieve their goals, is actionable, and incorporates industry knowledge is where the art brings the science to life.  This is one of the most critical points for our clients to lend their industry expertise to the segmentation process. 

Overall, segmentation is complex, detailed, exciting, and often brings a little bit of fun into our day as researchers. While the list of core elements we outlined above isn’t exhaustive, they serve as the building blocks for every segmentation we do. Keeping these core elements in mind throughout every step of a segmentation process helps us to ensure we’re creating solutions that will help our clients drive success within their organization… and maybe find a new segment to love.  

JILL MILLER

CO-FOUNDER
CATAPULT INSIGHTS

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