4 Creative Models to Creating Effective Customer Segments

There are many ways to segment your customers, but which is right for you? 

More importantly, how can you be sure that your segments are effective at driving growth? 

This blog post will explore four creative models for customer segmentation. We'll also outline how they work and the benefits of using them.

By the end of this post, you'll have a better understanding of which approach is right for your business. 

Let's get started!

  1. Kano Model

The Kano Model is a customer satisfaction model that helps you determine customer satisfaction with your product or service. 

Developed by Professor Noriaki Kano, it's used to help identify what factors contribute to overall customer satisfaction, the importance of each element, and its relative impact on your customers' perception of value. 

For example, suppose you have a software development company and want to create an effective segmentation strategy for your clients. In that case, this model will help you understand which features are most essential for them when making future purchases from your brand.

 

Let's see how this model works:

  • Basic factors: These are the most basic and essential features that customers need to get the job done. 
  • Performance factors: These are optional, but they will help increase customer satisfaction if offered in addition to the basic factors. 
  • Excitement factors: These are optional and may not be as important as the other two, but they can still increase satisfaction if offered.

Also, you can use the Kano Model to figure out which features will help you keep customers around longer and how many of each factor should be included in your offer.

2. VALS Framework

The VALS (Values, Attitudes, and Lifestyles) Framework is an analytical tool developed by SRI International in the early 1980s. It is designed to help marketers identify the most valuable consumer segments in a given market and tailor their strategies accordingly. 

The VALS Framework identifies eight distinct consumer segments based on values, attitudes, and lifestyle characteristics. 

These segments are divided into two groups: primary and secondary users. 

Primary users are most likely to purchase the product or service being marketed, while secondary users may be interested in the product but are less likely to buy it. 

Each segment is further divided into four distinct sub-segments, which can be used to refine marketing strategies.

The primary VALS segments are: 

  • Innovators
  • Thinkers
  • Achievers
  • Experiencers
  • Believers
  • Strivers
  • Makers
  • Survivors

Each of these segments has distinct values, attitudes, and lifestyles. 

For example, Innovators are highly educated and affluent individuals who value experimentation and exploration; Thinkers are reflective and analytical individuals who value logic and reason; Achievers are driven by success and status-seeking.

By understanding these core consumer segments, marketers can tailor their strategies to reach the right customers.

For example, an advertising campaign targeting Innovators would be more likely to feature technology and innovation, while a campaign targeting Believers might emphasize community values. 

Similarly, products and services marketed to Achievers should focus on career success and status, while those targeting Strivers should emphasize improving the lives of the target audience. 

Understanding and utilizing the VALS Framework can help marketers craft more effective strategies and reach their desired target markets.

3. JTBD (Jobs to Be Done)

Jobs to Be Done is another helpful marketing framework. It is based on the concept that people don't buy products but hire them to do a specific job. 

This theory focuses on understanding the motivation behind the purchase rather than the product itself and can help marketers develop more effective strategies. 

For example, people hire cars to transport them from point A to point B, but they don't just buy cars because they need transportation. Instead, they may choose a vehicle based on its ability to provide comfort or safety.

When you get your car's oil changed at the mechanic's shop, you aren't just satisfying your desire for convenience—you're hiring someone else (the mechanic) to take care of something that would be difficult for you or cost more money if you did it yourself.

Marketers can create targeted campaigns that better meet their needs by analyzing the customer's behavior and the “job” they are hiring the product to do.

4. The 5-Factor Model

The 5 Factor Model is a marketing research tool that measures how customers feel about your product. It can segment consumers and create compelling messages for each group.

The 5 factors that make up this model are:

  • Openness: Openness is the degree to which a customer is willing to try new or different things. Open customers tend to be curious, have broad interests, and be more likely to explore new products.
  • Neuroticism: Neuroticism measures a customer's emotional stability and negative outlook on life. Customers who score high in Neuroticism are more likely to be anxious, prone to stress, and emotionally reactive.
  • Conscientiousness: Conscientiousness measures a customer's willingness to follow rules, stay organized, and pay attention to details. Conscientious customers tend to be reliable, responsible, and hardworking.
  • Agreeableness: Agreeableness measures a customer's ability to get along with others and cooperate. Customers who score high in Agreeableness tend to be trusting, sympathetic, and kind.
  • Extraversion: Extraversion measures a customer's level of outgoingness and sociability. Customers who score high in Extraversion tend to be talkative, energetic, and assertive.

Understanding the psychological profile of consumers can help you craft targeted campaigns and personalize your messaging for each segment. 

This model allows you to analyze the personality of different groups of people and see how they interact with your brand. This can give you invaluable insights into how to create effective marketing strategies and optimize customer experiences.

By looking at these five factors, you can understand how customers feel about your product. 

5. Persona-Based Segmentation

In persona-based segmentation, you create fictional characters representing different types of customers and then build your marketing strategy around them.

For example, you might create three personas:

  • A G Suite user who needs to collaborate with his team.
  • A budding entrepreneur who uses Gmail, YouTube, and Docs for work.
  • An individual looking for paid storage on Drive for personal use. 

These personas will help you understand their needs in detail so that you can craft messages that resonate with them and prioritize features, products, and services accordingly.

Of course, it's essential to use data when creating personas. Before building fictional characters, you must understand your customer base and analyze your data. 

Otherwise, you risk creating personas that don't accurately reflect your customer base.

Conclusion

Creating effective customer segments can be challenging, but you can use several creative models to make it easier. 

From the Job-to-be-Done Theory and the 5-Factor Model to Persona-based Segmentation, each model has its benefits and can be used to create more effective customer segments. 

You need to analyze your customers' needs and behaviors and use a suitable model to create a strategy that meets those needs.

With the right approach and analysis, you can create an effective customer segmentation strategy to help your business reach its goals.

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