Akcela have been delivering market segmentation consultancy for a number of years. Whilst many businesses will, over time, develop in-house segmentation, and processes for supporting different segments in different ways. The drift in customer demands and outputs can, over time, create business processes filled with friction and mistakes. If you are a start-up business, you may not have any internal structures for your different segments at all, nor the data to drive them. In this instance, a persona-based approach to market segmentation is the best (and only) way to address the problem. Something we have implemented time and time again as part of our many startup consultancy projects.
This insight is split into three elements:
- The Personal Approach to Market Segmentation – Perfect for start-up and early-stage companies.
- Data Driven Approach to Market Segmentation – For larger organisations, with a defined customer base and usually some segmentation already in place.
- A Practical Guide to Market Segmentation – A video we delivered to the Norfolk Chamber of Commerce outlining our approach and an example of market segmentation in action.
Persona Approach to Market Segmentation
Whilst personas can be attributed to a data driven model, generally, persona-based approaches to market segmentation are utilised where a business doesn’t have the required data to create their own market segmentation.
When creating a first business plan, many businesses will outline roughly what different segments of their target market look like. This helps in defining messaging to each type of market segment, as well as the marketing strategy that surrounds each persona.
An example of this may well be a clothing brand that offers handmade jeans. For one segment within their target market, say eco-conscious consumers with an age range of 18-21 may focus on the longevity of the product. Their messaging and marketing campaigns for 40–45-year-old fashion conscious individuals may be more around the hand-crafted nature of the jeans and the quality of the cut.
Whatever the business with early staged businesses, persona-based market segmentation is more judgement and desk-based research, than quantitative, in business-based intelligence.