The Market Segmentation Process Team

Engaging in a market segmentation process can be a game-changer for your entire organization. We've observed companies commission market segmentation studies, devote a team to the effort, labor hard and long to achieve potent, robust results, only to have the roll-out flop because key players within the firm felt excluded from the process--the classic "not invented here" syndrome.

For a market segmentation process to succeed, buy-in from all areas of an organization are critical, even those who are first blush would not appear to have a vested interest or desire to participate.

Casting a wide net for stakeholders can make or break the effort.

One of this site's writers participated in just such a process. The obvious stakeholders were invited: marketing, customer service, public reactions, and legal. The process leader, a senior manager in Marketing, went to great lengths to keep his management informed (and even participating) as well as key players from customer service.

Unfortunately, senior players in on the Financial side of the business either chose not to participate or were not sufficiently persuaded of the benefits of participation.

The market segmentation team spent a full year working the process, involving months of analysis of existing data, brainstorming, hypothesis development, literally dozens of focus groups, quantitative data collection and analysis, and finally segment development and analysis.

The team then prepared to roll-out the results. Imagine the surprise when the heads of Finance and Risk Management balked at the entire concept. Even though the process was analytically immaculate; the factor and cluster analyses that resulted in the segments clear and pristine; these managers raised sufficient objections to jettison the effort. Their buy-in was critical to the success of the roll-out; without their sanction and participation and support, the changes required to implement the segmentation in the organization could not happen.

So it is critical that you include everyone in your market segmentation process. Not necessarily as day-to-day team participants, but definitely part of the milestones and decision-making junctures.