Blog: The Power of Segmentation | Stephan Liozu

Segmentation is at the heart of marketing. It is actually one of the most essential step in progressive market management but is also one of the most neglected one. By neglected, I mean it is either not performed at all or it is designed in a very traditional fashion: using demographics or firmographics parameters. Over the last decade the science and art of segmentation have evolved. Best-in-class organizations have embraced the scientific data revolution to design both qualitative and quantitative segmentation processes leveraging the data richness they possess. Whether in B2C or in B2B markets, they have quickly understood that the size-does-fit-all approach is no longer relevant. As a matter of fact, progress in the segmentation science and the availability of data allows scientists and marketers to become more refined in segmentation depth. For example, there has been much written about Netflix lack of segmentation and one-size-fits-all streaming offer and their pricing level. Netflix is now trying to better segment their rich customer basis and to design a variety of packages and bundles priced differently. Big data in marketing and sales allows for micro-segmentation and more relevant one-on-one marketing.

I could write a whole book on segmentation types and techniques. Such books already exist as a matter of fact. As a practitioner, there are very compelling benefits to conducting a thorough and scientific segmentation analysis as show in the figure below.

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