Market research and segmentation – part 1
We are currently preparing a proposal for one of our clients with more than 10 operations across Africa. The objective of the project is to build a corporate segmentation understanding the market and client dynamics in each of the countries in which they are present. This will be done thanks to a mixed effort of an agency plus a management consulting company (us?). What for? Several purposes…some of them are to be able to build tailored value propositions, understand who are their valuable clients, which room fr growth they have, etc.
Answering to the proposal, I thought it might be interesting to post sanitized chapters of it to show what we really think about this exercise and where do we think resides the value of a combined work between the agency and us.
As written previously in my previous post “Segmentation, gettting the most of our clients” we believe segmentation, correctly applied, has a profound impact on the success of customer-led strategies. Therefore a successful segmentation approach requires the following recommendations.
1. Understanding the market as it really is, not as you would prefer it to be – how we work
2. A clear and appropriate definition of the market to be segmented – project parameters
3. Focusing on key decision-makers – market mapping
4. Insight into how you win and retain different customer groups – market segmentation
Please find next the first chapter. Enjoy the reading.
CVA, Merry Xmas
CHAPTER 1: Understanding the market as it really is, not as you would prefer it to be – how we work
We have taken the mystery out of segmentation so that operators can develop a usable segmentation structure that delivers real benefits to their customers, their operations and, ultimately, their shareholders.
Our approach looks at how the market is segmented from the customer’s perspective. It is based on the simple belief that the most effective basis for successful segmentation is a detailed understanding of the criteria used by customers when choosing between competing products and services. We follow a fully documented process supported by a specialist market researcher and fieldwork agency.
Once the segments have been uncovered we suggest to work with the operator to determine which segments are best suited to target and what strategies it is needed in Africa to adopt in order to win and retain the customers found in your chosen segments. By linking this to an analysis of segment profitability we ensure segmentation becomes a major contributor to shareholder value.
The customer insights gained from our approach provide essential input into the sales and marketing strategy, customer acquisition and retention programmes, channel strategy, product and service development in operators’ corporate strategy.
Next Chapter: A clear and appropriate definition of the market to be segmented – project parameters