Market segmentation: how does it work with onlinesocial networks?

paul.fennemore@viapoint.co.uk@paulfennemoreT: 0845 319 3707M: 0777 5823386

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1. Do traditional market segmentation practices cross over

2. Are there new market segments emerging that we need to tap into

3. What’s working and what’s not working ?

The past was about one to many and shouting the loudest

× Click thru banner ads decreasing – 30% p.a. (av: 0.05%)

× Radio listeners down – 14%

× TV ad spending down – 14%

× US print advertising down – 30%

× Online engagement down - 19% H1 2011 UK

Marketing Practices Need Changing?

Is basic, static demographic segmentation becoming less useful?

•Travelled•Mobile•Informed•Influenced•Visible

Consumers /buyers are more:

Broadcasting

•Static demographic segments

•Presumed characteristics

Engagement

•Dynamic– Anywhere– Anytime– Real-time– Interactive – Multimedia

•Actual behaviour

Transitioning

Demographics/ Firmographics

Demographics. Psychographics

Demographics. Psychographics Syncrographics Webographics Personas

Expe

rtise

& R

esou

rces

#customers + #product variations = #segments & sophistication

The Variation of Segmentation Adoption

Trends:• Viewed as increasingly important• Using ‘trial and test’ strategy• The view that basic and static segments are becoming less valuable

Leadership Strategy Integrated Governance Resources Communities Content SocialCRM

Strategic

Social Commerce Adoption Framework

Source: ©Paul Fennemore, Viapoint 2011

Experimental

Tactical

True Profile Data Sources Data Renaissance 8 fold increase by 2016

TraditionalSegment PushBroadcasted messaging

Segment 1Not targetedDisaffected response

Segment 2TargetedAttracted response

Segment 3Not targeted

Neutral response

Target Segment Only

Attracted

Source: ©Paul Fennemore, 2011

Segment PullTargeted Segment Only

Social NetworkCommunity of Interest

Segment Push vs. Segment Pull

•Psychographicsegmentation

• Onlinecommunities

•Homogeneous groups• Interest groups

Broa

dcas

ting

One

to M

any

ConversationsO

ne to One

Cost /TimeLower Higher

• Social Capital• Creators

• eInfleuncers• Brand evangelists

•Community evangelists• Unhappy customers

• Trolls?

• Demographics•Heterogeneous market segments

Prioritisation of Engagement Points

Source: ©Paul Fennemore, Viapoint 2011

Social Network Engagement Continuum

EngagementLower Higher

Social Media

Segmentation

Strategies

Consumer Power

“They choose how they

want to be treated”

Find where existing

segments congregate e.g. Surfers,

Bands, Mums,

Health, ITEarned

Engagement

Segmentation Pull

Creating own community of common

interest

Social Network PlatformsEach is a different segment variable.

Psychographics

/Socialgraphics

Attitude, Opinions, Interest, Actions, Passion Points,

Motivation, ‘Likes’

Media TypeOwned, Bought, Earned

Conclusions in Summary

2. New segments are emerging

3. One to one engagement on-mass is not practical

4. Consumer empowerment

5. CRM and SocialCRM integration

6. Success is determined by social commerce philosophy and strategy

1. Traditional segments do cross over

General Segmentation Strategies•Integrate segmentation, insight and social media operations and strategies•Ensure social team is trained on segmentation practices

CRM Data Collection and SocialCRM•Use KPI’s to decide what data to harvest – but not standalone KPI’s•Use for segmentation - Socialgraphics, AIO’s, influencers and detractors•Avoid silos of data – merge data sets•Acquire consumer social network ID’s and correlate

Social Media Segmentation•Review segmentation strategy in light of social networks•Indentify existing and new segments in online social networks•Use segmentation pull approach•Apply engagement continuum to decide on engagement points•Use to engage with ‘Long Tail’ segments•Integrate with new social marketing practices e.g. SIM, community and conversation marketing

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