SELF SEGMENTATION

• Company seeks customer’s segmentation for

its marketing & advertising investment
• Traditional method involves CRM based
system
• Places in different bucket based on :
– Demographic
– Behavioral
– Attitudinal
• Negatives of CRM based segmentation:
– requires huge investment
– Implementation is complex
– Sophisticated analysis
– Out of reach for small and mid sized company
What NEXT???
The Promise of Self Segmentation
 What is Self Segmentation

• Community based approach to segmentation

• concentrate on social media and online
communities
• Prefer web empowered consumer
 WHY??
• More accurate and reflective of consumers’
attributes
• Consumer knows himself much better than 3rd
party analyst
• no complexity of demographics, psychological,
etc.
 Leveraging Self Segmentation
3 approaches:
• Social networks
– Facebook & Mindspace comprises of 67% of
world’s online population
– Corporate branded communities, product thread
– Companies listen to these posts and find insights
• Communication Behavior:
– Major retailers and big companies understand
segments through website personalization
– Monitor person’s click stream, previous visits and
purchases
– RSS feed, news blog and newsletters
• Mass Customization:
– Gives base offering and tailor to customization
(DELL)
– Launchpad for stronger relationship & increased
engagement
– Bottom’s up approach
 Challenges
• Self segmentation information is accompanied by
organizational change
• Involvement of customer input into insular areas
(R&D, policies etc)
• May require new department other than CRM
and Marketing
• Monitoring conversation among multiple
communities is a labor intensive job
• Can generate backlash
 Segmentation in rural
• Segmentation by
– Profession
– Family affluence
– Analyzing products they buy
 Routes
• Organizing specific fairs:
– Like games
– Fairs for the farmers
– Handicraft exhibition
• Can communicate about different loan
programs of the bank