How QDI Works with You to Develop Winning Segmentation Strategies

The decision to invest in segmentation research is usually driven by the necessity to make key business decisions. Therefore, we begin segmentation strategy engagements by identifying our client’s goal. The goal becomes the spring board for our research efforts. Are you considering entering a new market, looking for unmet customer needs to drive product development and distinguish your product in the marketplace, or striving to be more effective in marketing the products and services you sell today?

If your goal is to determine if you should enter/invest in a new market, Structural Segmentation will demonstrate how big your market is, how fast it’s growing, who the key players are (both competitors and channels) and what forces are impacting the market that may make it easier for a new entrant to be successful or make an acquisition strategy more effective. In some cases, clients learn a market is not worth investing. This knowledge saves millions of dollars that might have been wasted on a low-potential opportunity.

If your goal is to identify customer needs, Needs-Based Segmentation will help you develop an in-depth understanding of your customer. This research requires spending intense time with a representative group of customers. Our ability to gain meaningful access to key customers not only expedites the process but also lowers the cost.

Needs-Based Segmentation is usually conducted to evaluate the product’s potential. Much of our effort is focused on learning how well the product concept fulfills the customer’s needs. We meet regularly with our client team to review what we’re learning. The knowledge gained drives product/service development.

If your goal is to identify customers who are ready and able to buy your product, Sales Effectiveness Segmentation focuses on the customer’s decision-making process and organization. We begin by identifying those customers who value your product concept enough to consider it. We then dig into the customer’s internal dynamics to understand the barriers to adoption. We are striving to define classes of barriers and what can be done to overcome them. These insights frequently help our clients save valuable resources that might otherwise have been spent targeting customers who are not likely to buy their product.

Basing your segment strategy on information gained from flawed market understanding is a dangerous trap. The quality of your information can mean the difference between lower earnings and increased revenues. Each level of segmentation must be based on the realities of the market. Therefore, we’ve developed a proven “discovery research” process to quantify key market variables. The table below demonstrates where and why to use each form of segmentation:

QDI’s consultants help our clients use segmentation to maximize profits. We conduct extensive discussions with multiple audiences across potential markets to develop insightful segmentation models. Our clients gain the market understanding they need to
make educated, fact-based business decisions. Typical assignments take two to four months to complete depending on your objectives and time constraints.

For solutions to your Segmentation Strategy challenges, contact Steve Bassill or
Mike Barr at QDI Strategies, Inc.

Steve Bassill -- 847-566-2020 Ext. 229

Mike Barr -- 847-566-2020 Ext. 225