Segmentation Strategy

Identifying the most profitable customer segments for your business, and how to win with them.

Market segmentation, correctly applied, is about understanding the needs and drivers of customers and their behaviour, and therefore, how they decide between one offer and another. 

This insight is used to form groups of customers who share the same or very similar value criteria.   Successful segmentation should be meaningful, mutually exclusive, measurable, actionable, stable, definable and substantial in that there is enough volume per segment to make differentiated action financially viable. 

As a business tool it's about where to focus your energy, funds and resources and enables you to know where and how to make your offering different, special and better and thus enables growth.

As a brand management tool, segmentation must be actionable and should evoke the design of relevant and effective sales and marketing activities, such as brand portfolio planning, communication, promotion and brand engagement , product innovation, pricing, choice of distribution channels, purchase environment, etc.

The brilliance of a successful marketing segmentation lies not in the fancy statistics or black box modelling that is used to define the segments, but its value is defined in the implementation and usability of the model to deliver quantifiable improvements in customer engagement, management and return on investment.

Once we have developed your bespoke segmentation model, we will work with your team to identify which of the segments provide the greatest opportunities for your business and brand. This is what we call Segmentation Strategy. For each of the priority segments, we will develop a simple plan to best serve these segments.

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Koo
KOO turns to Yellowwood for a brand refresh
KOO, one of the country’s top brands (according to the 2015 Sunday Times Top Brands Survey) partnered with Yellowwood Future Architects to refresh its look and remind consumers of its iconic place in SA’s consumer landscape.
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 I thoroughly enjoyed the strat process with Yellowwood, and got out of it exactly what we had set out to achieve. They brought pace, insight, and energy to a process that I was fearing would be slow, drawn out, and not culminate in anything material 
- Ryan Till, Primedia
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