Great market segmentation results rely on imagination.
Starting with great imagination is perhaps even more important than the precise variables on which the segments are based, the measurements taken or the calculus used to compute the segments. Think twice and cut once.
Single Variable Segmentation Example
Many powerful segmentations are based on a single variable that is measured and then sliced at various thresholds. As illustrated by a normal curve sectioned into several pieces – there is one variable and segments are assigned according to cut points identifying segment boundaries.
The so-called Technology Adoption Lifecycle Model is one powerful example of this type of segmentation model. A person’s single answer to a single question determines which segment they belong to. Meters including thermometers and speedometers give rise to everyday segmentations such as determining whether one has joined the class of people having a fever or about to receive speeding ticket and so forth.
