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Market Segmentation Case Studies – A Detailed Guide

Rohit Rajpal

Rohit Rajpal

Senior Writer

Market Segmentation A Complete Guide

In today’s competitive business landscape, effective marketing is essential for businesses to thrive and stay ahead. One powerful strategy that can elevate your marketing efforts and drive remarkable results is market segmentation. According to a study, segmentation makes firms 60% more likely to understand their customers’ concerns and challenges.

short case study on market segmentation

Understanding your target audience and tailoring your marketing approach to specific customer segments can significantly enhance your business’s success.

In this blog, we will explore the concept of business market segmentation, its importance, and the benefits it offers. We will delve into different types of market segmentation, including geographic, demographic, psychographic, and behavioral segmentation, highlighting how each can help you better understand and connect with your customers.

You need to start segmenting your demographic if you want to achieve better results and scale your business. You can start by identifying your target market, understanding your customer’s choices and preferences, and then building a solid marketing segmentation strategy.

What Is Market Segmentation?

Market segmentation is the process of dividing a larger target market into distinct groups or segments based on similar characteristics, needs, or behaviors. It allows businesses to better understand their customers and tailor their marketing strategies and offerings to meet the specific requirements of each segment.

By segmenting the market, businesses can identify different groups of customers with shared traits such as demographics (age, gender, income), geographic location, psychographics (attitudes, interests, lifestyle), or behavioral patterns (purchase history, usage habits).

This segmentation helps companies to effectively target their marketing efforts, create personalized messaging, develop relevant products or services, and allocate resources more efficiently. Market segmentation is mainly done by using an automated market segmentation software. 

So, now that you know the market segmentation definition, let’s now learn the importance of market segmentation.

Why Is Market Segmentation Important?

Market segmentation is of paramount importance in the field of marketing due to several key reasons. Firstly, it enables businesses to comprehensively understand their customers by dividing the target market into distinct segments.

Businesses can acquire valuable insights into their preferences, motivations, and purchasing patterns by identifying shared characteristics, needs, or behaviors among customers within each segment. This deep understanding forms the foundation for developing targeted marketing strategies that resonate with each segment, resulting in more effective and relevant communication.

Secondly, market segmentation facilitates precise targeting and positioning. Rather than adopting a generic approach, businesses can focus their marketing efforts on specific segments most likely to be interested in their products or services.

By tailoring messages and campaigns to the unique characteristics and desires of each segment, businesses can position themselves in a way that differentiates them from competitors and appeals to the specific needs of their target audience. This targeted approach improves the efficiency of marketing campaigns, as businesses can allocate their resources more effectively, resulting in higher conversion rates and increased customer acquisition .

Moreover, market segmentation enhances the overall effectiveness of marketing endeavors. By delivering personalized and relevant messages to each segment, businesses can establish stronger connections with their customers. 

Customized communication that addresses specific pain points, desires, or aspirations enhances engagement and response rates and ultimately drives higher sales. Customers are more likely to engage with messages that resonate with their needs, and market segmentation allows businesses to tailor their content precisely to meet those expectations.

Different Types of Market Segmentation to Understand

Market segmentation strategy that involves dividing a larger target market into distinct segments based on shared characteristics, needs, or behaviors. Businesses can employ several market segmentation types to effectively understand and reach their target audience.

Different Types of Market Segmentation

The key market segmentation types include geographic, demographic, psychographic, and behavioral segmentation.

1. Geographic Segmentation

This method of segmenting the market creates divisions based on geographic elements such as location, climate, region, or population density. It acknowledges that consumer demands, interests, and behaviors might change depending on where they are in the world.

Companies can modify their marketing plans and product lines to target particular areas, cities, or neighborhoods. For instance, a clothing merchant might modify its product line to fit the local climate or cultural preferences.

2. Demographic Segmentation

Segmenting the market based on demographic characteristics like age, gender, income, occupation, level of education, or family size is known as demographic segmentation. Businesses can target particular client groups with specific demands and features thanks to segmentation. For instance, a toy company might market to young children with its goods, but a luxury automobile company might target wealthy people with higher earnings.

3. Psychographic Segmentation

Market segmentation based on psychological and lifestyle characteristics, including as attitudes, values, interests, personality traits, and behaviors, is known as psychographic segmentation. Businesses can better understand their target market’s motives, objectives, and preferences by using this kind of segmentation.

By determining psychographic profiles, companies can adjust their marketing messages and products to fit particular consumer lifestyles and preferences. For instance, a fitness brand may appeal to people who are health-conscious and who value living an active and healthy lifestyle and are health-conscious.

4. Behavioral Segmentation

Behavioral segmentation divides the market based on consumer behaviors, usage patterns, and decision-making processes. It considers factors such as purchasing habits, brand loyalty, usage frequency, benefits sought, and response to marketing stimuli.

behavioral segmentation

Businesses can develop strategies to target and engage specific segments by understanding how consumers behave and make purchasing decisions. For instance, an airline might offer special loyalty programs and incentives to frequent travelers or develop targeted promotional campaigns for customers who have previously purchased their services. These processes can also be easily automated using a marketing automation software .

What Are the Key Benefits of Market Segmentation?

To connect with your target audience, it’s essential to segment them based on their preferences. Market segmentation offers several key benefits for businesses –

Benefits of Market Segmentation

1. Targeted Marketing

Businesses can target particular client categories using niche marketing approaches thanks to market segmentation. Businesses can develop individualized messages and services that appeal to their target audience by understanding the particular traits, requirements, and preferences of each segment. The possibility of attracting the interest and attention of potential customers increases with this focused strategy, resulting in increased conversion rates and improved marketing efficiency.

2. Improved Customer Understanding

Market segmentation helps companies gain a better knowledge of their target audiences. Businesses can learn more about the demographics, behaviors, tastes, and motivations of their customers by examining various segments. By creating goods and services that specifically address customer demands, businesses can increase client happiness and loyalty. Businesses may build deeper relationships with customers and provide experiences that live up to their expectations by having a detailed understanding of their needs.

3. Enhanced Product Development

Market segmentation facilitates product development by identifying the unique needs and preferences of different customer segments. By understanding the specific requirements of each segment, businesses can create products or services that cater to those needs. This customization improves the product-market fit, increases customer satisfaction, and creates a competitive advantage in the marketplace.

4. Efficient Resource Allocation

Market segmentation enables businesses to allocate their resources more efficiently. Instead of deploying a one-size-fits-all marketing approach, businesses can focus their efforts and resources on segments offering the highest success potential. This targeted resource allocation reduces waste and maximizes marketing initiatives’ return on investment (ROI).

5. Competitive Advantage

Market segmentation helps businesses gain a competitive advantage by identifying and targeting niche markets or underserved customer segments. Businesses can differentiate themselves from competitors by focusing on specific segments and addressing their unique needs. This differentiation enhances brand positioning and increases the chances of capturing a loyal customer base.

6. Market Expansion Opportunities

Through market segmentation, businesses may discover new market opportunities or niche segments with specific unmet needs. By identifying these gaps, businesses can develop products, services, or marketing campaigns to address those needs. This can lead to market expansion, increased market share, and business growth.

7. Effective Communication

Market segmentation allows businesses to develop targeted communication strategies. By understanding the characteristics and preferences of each segment, businesses can tailor their messages, channels, and marketing tactics to effectively reach and engage their target audience. This improves the relevance and impact of marketing communications, leading to higher response rates and customer engagement .

Case Studies: Successful Examples of Market Segmentation 

To better understand how market segmentation can positively impact your business, we’ve compiled a list of 4 case studies that showcase market segmentation. You can check out how segmentation worked for these leading companies.

Case Study 1: Coca-Cola’s “Share a Coke” Campaign

Coca-Cola

Coca-Cola’s “Share a Coke” campaign is a successful example of market segmentation. In an effort to connect with consumers on a more personal level, Coca-Cola replaced its iconic logo with popular names on its bottles and cans. By doing so, they targeted the millennial generation, which values individuality and personalization.

The campaign involved extensive market research to identify the most common names within specific regions. This approach allowed Coca-Cola to create a strong emotional connection with consumers by making the product more personalized and shareable. The campaign was a tremendous success, leading to increased sales, social media buzz, and customer engagement.

Case Study 2: Nike’s Women’s Market Segmentation

Nike

Nike’s focus on the women’s market is another noteworthy example of successful market segmentation. Nike identified that women have distinct athletic needs and preferences, leading them to develop a dedicated product line catering to female athletes.

Nike introduced innovative designs, technologies, and marketing campaigns that resonated with women, emphasizing empowerment, inclusivity, and performance. By recognizing this segment’s unique characteristics and desires, Nike has become a dominant player in the women’s athletic market, securing a loyal customer base and driving substantial revenue growth.

Case Study 3: Apple’s iPhone Segmentation

iPhone

Apple has effectively implemented market segmentation in its iPhone product line. Recognizing that different customer segments have varying preferences and budgets, Apple offers a range of iPhone models with different features and price points.

The iPhone SE caters to price-conscious customers who desire a more affordable option, while the iPhone Pro targets customers seeking high-end specifications and advanced camera capabilities.

By addressing the needs of various segments, Apple has successfully captured a significant share of the smartphone market, appealing to different customer preferences and maximizing their revenue potential.

Case Study 4: Amazon’s Prime Membership Segmentation

Amazon's Prime

Amazon’s Prime membership is a prime example of market segmentation and customer loyalty. Amazon segmented its customer base by offering a subscription-based service that provides exclusive benefits such as free shipping, access to streaming services, and special discounts.

By targeting customers who frequently make online purchases, Amazon has created a loyal customer segment that values the convenience and additional perks offered by the Prime membership. This segmentation strategy has increased customer retention, higher average spending, and a strong competitive advantage in the e-commerce industry.

How to Determine Your Market Segment?

Determining your market segment involves a systematic approach that combines market research , analysis, and evaluation of customer data. Here are some steps to help you determine your market segment –

Steps to Determine a Market Segment

1. Determine your Target Audience

Establish your product or service’s broad target market before anything else. Take into account variables like demography, location, and psychographic traits. The basis for further segmentation will be this large target market.

2. Conduct Market Research

Using a variety of research techniques, gather information and insights about your target market. Surveys, interviews, focus groups, and analyses of previous customer data are some examples of this. Understanding the demands, interests, attitudes, and purchasing habits of your potential customers is the aim.

3. Demographic Segmentation

Create distinct groups within your target market based on characteristics like age, gender, income, occupation, level of education, and family size. Examine the information to find any notable variations or patterns within these segments.

4. Segment Based on Psychographics

Take into account traits like values, attitudes, hobbies, and way of life. Look for patterns and combine clients with comparable psychographic profiles. Understanding the motives and desires of various consumer categories is made easier by segmentation.

5. Segment Based on Behavior

Analyze customer behaviors and patterns such as frequency of purchases, brand loyalty, product usage, and reaction to marketing stimuli to create segments based on behavior. Determine groups based on these behavioral traits to comprehend how people use your product or service.

6. Evaluate Segment Attractiveness

Analyze the attractiveness of each segment by taking into account its size, growth rate, level of competition, profitability, and suitability for your company’s objectives and resources. Concentrate on market segments that support your company’s goals and have the best chance of succeeding.

7. Test and Refine

Once you have identified potential segments, test your marketing strategies, messages, and offerings with each segment. Monitor the response and gather feedback to refine your approach further. This iterative process allows you to optimize your marketing efforts and tailor them to each segment’s specific needs and preferences.

Remember that market segmentation is not a one-time activity. Markets evolve, and customer needs change over time. Regularly reassess your market segments, monitor market trends, and adapt your strategies to ensure ongoing relevance and success.

Challenges and Limitations of Market Segmentation

While market segmentation is a valuable strategy, it is not without its challenges and limitations. Here are some key challenges and limitations:

Challenges of Market Segmentation

1. Data Availability and Accuracy

Market segmentation relies heavily on accurate and reliable data. High-quality data can be challenging, especially for smaller businesses with limited resources. Additionally, data sources may have limitations, and there can be inaccuracies or biases in the data collected. It is essential to ensure data validity and constantly update and validate the data to maintain its accuracy.

2. Overgeneralization

Market segments are based on identifying common characteristics among a group of consumers. However, it is important to remember that individuals within a segment can still have unique preferences and behaviors. Overgeneralizing and assuming that all customers within a segment are the same can lead to ineffective marketing strategies and missed opportunities.

3. Dynamic Market Conditions

Markets are constantly evolving, and consumer needs and preferences change over time. A market segment that was once successful may become less relevant or saturated as new trends emerge. Adapting to changing market conditions and continuously reassessing and updating market segments is crucial for maintaining relevance and effectiveness.

4. Increased Competition

As businesses become more adept at market segmentation, competition within specific segments intensifies. It can become challenging to differentiate products or services in a crowded market segment. Businesses need to develop unique value propositions and continually innovate to stand out from competitors and capture the attention of their target audience.

5. Cost and Resource Constraints

Implementing market segmentation strategies can require significant investments in terms of time, money, and resources. Small businesses with limited budgets may find it challenging to conduct comprehensive market research or develop customized marketing strategies for each segment. It is important to strike a balance between the resources available and the potential benefits of segmentation.

6. Segment Overlap and Cannibalization

In some cases, market segments may overlap, with customers falling into multiple segments. This overlap can create complexities in targeting and messaging, and businesses need to carefully manage their marketing efforts to avoid cannibalizing their own customer base or confusing their target audience.

7. Ethical Considerations

Market segmentation can involve the use of personal data and consumer profiling. Businesses must ensure that they comply with privacy regulations and ethical guidelines. Respecting consumer privacy and using data responsibly is essential to maintain trust and credibility.

The efficacy and performance of your company can be considerably increased by including market segmentation in your marketing plan. You may adapt your marketing efforts to resonate with each segment by splitting your target market into categories based on similar qualities, requirements, and behaviors. This will improve customer engagement, boost conversion rates , and improve customer happiness.

Thanks to market segmentation, you can target particular client groups with specialized messaging, goods, and experiences. This focused marketing segmentation strategy enables you to establish better connections with your audience, set your brand apart from rivals, and interact with them on a deeper level. You may then send engaging marketing messages that speak directly to the specific interests and demands of each segment.

Frequently Asked Questions

Yes, market segmentation can be applied to service-based industries just as effectively as it is used for product-based businesses. Segmentation helps service providers understand their target customers' needs, preferences, and behaviors, enabling them to tailor their offerings and marketing strategies accordingly.

Market segmentation objectives can vary depending on the specific business and industry. However, common objectives include targeted marketing to specific customer segments, gaining a deeper understanding of customers, increasing sales and revenue through personalized offerings, and gaining a competitive advantage by differentiating from competitors.

When implementing market segmentation, it is important to avoid common mistakes such as overlooking market research, relying solely on demographics without considering other factors, neglecting to evaluate segment size and potential, and failing to regularly reassess and update market segments as customer needs and preferences evolve. It is also crucial to respect ethical considerations and comply with privacy regulations when collecting and utilizing customer data for segmentation purposes.

Rohit

Rohit Rajpal is an accomplished writer and data enthusiast passionate about unraveling the intricacies of information and data. With a deep understanding of the subject matter, Rohit strives to simplify complex concepts and make them accessible to readers. Rohit’s expertise in the field and his knack for clear and concise communication make his blog an invaluable resource for those seeking clarity in the data-driven world.

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Market segmentation case studies: Learning from successful segmentation strategies

1. understanding the importance of market segmentation, 2. how nike nailed market segmentation in the athletic footwear industry, 3. coca-colas effective market segmentation for different beverage products, 4. apples targeted segmentation strategy for iphones and macbooks, 5. amazons personalized market segmentation approach in e-commerce, 6. mcdonalds successful segmentation strategy for different customer segments, 7. airbnbs innovative market segmentation in the travel industry, 8. lessons learned from successful market segmentation strategies, 9. implementing effective market segmentation for business success.

1. market segmentation is a crucial aspect of any successful marketing strategy . By dividing a target market into smaller, more manageable segments, businesses can better understand and cater to the unique needs and preferences of different customer groups. This approach allows companies to create tailored marketing campaigns , products, and services that resonate with specific segments, ultimately leading to increased customer satisfaction and profitability .

2. One example of effective market segmentation is Nike's approach to targeting athletes. The company recognizes that athletes have diverse needs and preferences based on factors such as their sport, level of competition, and personal style. Nike has created separate product lines and marketing campaigns to appeal to different segments within the broader athletic market. For instance, they have the Nike Running line for avid runners, the Nike Basketball line for basketball players, and the Nike Golf line for golf enthusiasts. By understanding the unique demands of each segment, Nike has successfully positioned itself as a leading brand in multiple sports categories.

3. When it comes to market segmentation, it is essential to consider various factors that can influence consumer behavior . Geographic segmentation, for example, involves dividing a market based on geographical boundaries such as countries, regions, or cities. This approach is particularly useful for businesses that operate in different locations and need to adapt their marketing strategies accordingly. By understanding the cultural, economic, and social differences between different regions, companies can tailor their offerings to better meet the specific needs and preferences of each area.

4. Another critical factor to consider in market segmentation is psychographic segmentation . This approach involves dividing a market based on consumers' lifestyles, interests, values, and personality traits. By understanding the psychographic profiles of different segments, businesses can create marketing messages and experiences that resonate with their target customers on a deeper level . For example, luxury car brands like BMW and Mercedes-Benz often target affluent individuals who value prestige, status, and performance. Their marketing efforts focus on showcasing the luxurious features, cutting-edge technology , and superior driving experience that align with the desires of this specific segment.

5. One notable case study of successful market segmentation is Coca-Cola's "Share a Coke" campaign. In an effort to connect with millennials, Coca-Cola replaced its logo on bottles and cans with popular names and phrases. By personalizing their products, Coca-Cola aimed to create a sense of individuality and personal connection among consumers. The campaign was a massive success, generating a 2% increase in sales and 7% increase in consumption among young adults. This case study highlights the power of market segmentation and the importance of understanding the unique desires and aspirations of different customer segments.

tips for effective market segmentation:

- conduct thorough market research to identify different customer segments within your target market.

- Consider both demographic and psychographic factors when dividing your market into segments.

- tailor your marketing messages , products, and services to meet the specific needs and preferences of each segment.

- Continuously monitor and analyze the effectiveness of your segmentation strategy, making adjustments as needed to better align with evolving customer demands.

In conclusion, market segmentation plays a vital role in developing successful marketing strategies . By understanding the unique needs and preferences of different customer segments, businesses can create tailored offerings that resonate with their target customers, leading to increased customer satisfaction and business growth . Through examples, tips, and case studies, it is evident that effective market segmentation can drive success and competitive advantage in today's dynamic marketplace.

Understanding the Importance of Market Segmentation - Market segmentation case studies: Learning from successful segmentation strategies

Nike, the global leader in athletic footwear and apparel, has consistently demonstrated its mastery in market segmentation. By understanding the diverse needs and preferences of its target audience, Nike has successfully positioned itself as a brand that caters to all types of athletes, from professional athletes to casual sports enthusiasts. In this case study, we will delve into how Nike has effectively segmented the athletic footwear industry and reaped the benefits of their segmentation strategies.

1. Segmenting by Sport and Performance Level:

One of Nike's key segmentation strategies involves categorizing their products based on the sport and performance level of the athletes. For example, Nike offers specific footwear lines for basketball, running, soccer, tennis, and many other sports. Within each sport, they further segment their products based on the performance level, such as professional, amateur, or recreational. This approach allows Nike to meet the unique needs of athletes in different sports and performance levels, ensuring that they have the right shoe for every athlete.

2. Segmenting by Gender:

Recognizing the differences in physiological needs and style preferences between men and women, Nike has successfully segmented their market by gender. They have developed separate product lines for men and women, considering factors such as foot shape, size, and design preferences. By tailoring their offerings to each gender, Nike effectively captures a larger share of the market and builds a strong brand loyalty among both male and female athletes.

3. Segmenting by Age:

Nike also understands the importance of targeting different age groups within the athletic footwear industry. They have successfully segmented their market by catering to the needs and preferences of various age segments, including kids, teenagers, and adults. For example, Nike's product lines for children focus on durability, comfort, and vibrant designs to appeal to young athletes and their parents. On the other hand, their offerings for adults emphasize performance, style, and technology advancements.

4. Segmenting by Lifestyle:

Nike recognizes that not all athletes are solely focused on sports performance; many also seek athletic footwear for their everyday activities and lifestyle. To cater to this segment, Nike has created lifestyle-oriented product lines, such as Nike Air Max and Nike Air Force 1, which offer comfort, style, and versatility for individuals who value both fashion and functionality. This segmentation strategy allows Nike to tap into a broader market beyond just sports enthusiasts.

5. Segmenting by Geographic Location:

Nike's market segmentation strategies are not limited to demographics and psychographics; they also consider geographic location. Nike tailors their product offerings based on the specific needs and preferences of consumers in different regions and countries. For instance, they may introduce footwear lines specifically designed for the climate and terrain of a particular region or collaborate with local athletes to create products that resonate with the local culture.

In conclusion, Nike's success in the athletic footwear industry can be attributed to their exceptional market segmentation strategies. By understanding the diverse needs and preferences of their target audience, Nike has effectively positioned itself as a brand that offers the right shoe for every athlete. Through segmenting by sport and performance level, gender, age, lifestyle, and geographic location, Nike has established a strong presence in the market and continues to be a leader in the industry. Other businesses can learn valuable lessons from Nike's segmentation strategies and apply them to their own industries to achieve similar success.

How Nike Nailed Market Segmentation in the Athletic Footwear Industry - Market segmentation case studies: Learning from successful segmentation strategies

Coca-Cola, the world's leading beverage company, has successfully employed market segmentation strategies to cater to the diverse preferences of its consumer base. By identifying and targeting specific consumer segments, Coca-Cola has been able to create a range of beverage products that resonate with different demographics and meet their unique needs. In this case study, we will explore some of the effective market segmentation strategies employed by Coca-Cola for its various beverage products.

1. Geographic Segmentation:

Coca-Cola recognizes that consumer preferences vary across different regions and countries. To effectively cater to these differences, the company has developed region-specific products and marketing campaigns . For example, in India, Coca-Cola offers a range of localized beverages such as Thums Up and Maaza, which are tailored to suit the taste preferences of Indian consumers. By understanding the unique cultural and taste preferences of different regions, Coca-Cola has been able to achieve significant market penetration and maintain its position as a market leader.

2. Demographic Segmentation:

Coca-Cola has also utilized demographic segmentation to target specific consumer groups based on age, gender, and income levels. For instance, the company has successfully targeted the millennial demographic through its Coca-Cola Zero Sugar and Diet Coke products, which appeal to health-conscious individuals seeking low-sugar alternatives. On the other hand, Coca-Cola's Sprite brand focuses on younger consumers with its vibrant and energetic marketing campaigns. By understanding the specific needs and preferences of different demographic segments, Coca-Cola has been able to create a portfolio of beverage products that resonate with each target group.

3. Psychographic Segmentation:

Psychographic segmentation involves understanding the psychological and lifestyle characteristics of consumers. Coca-Cola has effectively utilized this strategy by creating beverage products that align with different consumer lifestyles. For example, the company's Smartwater brand targets health-conscious individuals who value hydration and wellness. Coca-Cola's energy drink, Monster, appeals to consumers seeking an energy boost for an active and dynamic lifestyle. By aligning its products with specific consumer psychographics, Coca-Cola has been able to capture market share in various beverage categories.

Tips for Effective Market Segmentation:

- conduct market research: Understanding the needs, preferences, and behaviors of your target audience is crucial for effective market segmentation. Invest in market research to gain valuable insights that will guide your segmentation strategy.

- Tailor products and marketing campaigns: Once you have identified your target segments, customize your products and marketing campaigns to address their specific needs and preferences. This personalization will help build stronger connections with your target audience .

- Continuously monitor and adapt: consumer preferences and market dynamics are constantly evolving. Regularly monitor your target segments and adapt your segmentation strategy accordingly to stay relevant in the market.

Case studies like Coca-Cola's effective market segmentation showcase the importance of understanding your target audience and tailoring your products and marketing efforts to meet their specific needs. By employing various segmentation strategies, Coca-Cola has successfully penetrated different market segments and maintained its position as a global leader in the beverage industry.

Coca Colas Effective Market Segmentation for Different Beverage Products - Market segmentation case studies: Learning from successful segmentation strategies

Apple, one of the world's most valuable companies, has managed to create a strong and loyal customer base through its targeted segmentation strategy for iPhones and MacBooks. By understanding the needs and preferences of different consumer segments, Apple has been able to tailor its products and marketing efforts to effectively reach and engage with its target audience . In this case study, we will explore how Apple has successfully implemented segmentation strategies to drive growth and maintain its competitive edge .

1. Segmentation based on demographics:

One of the key segmentation strategies employed by Apple is targeting specific demographic groups . For instance, Apple has recognized the importance of appealing to younger consumers who are tech-savvy and value design aesthetics. This led to the introduction of the iPhone SE, a more affordable option targeted towards younger individuals who may not have the budget for the latest flagship models. Similarly, Apple's MacBook lineup offers different models with varying features and price points to cater to the needs of different demographic segments, such as students, professionals, and creatives.

2. Segmentation based on psychographics:

In addition to demographics, Apple also considers psychographic factors when segmenting its target audience . By understanding the lifestyle, attitudes, and values of its customers, Apple is able to create products and marketing campaigns that resonate with their target market. For example, Apple's focus on environmental sustainability and commitment to reducing its carbon footprint appeals to consumers who prioritize eco-friendly practices . This is evident in their marketing campaigns that highlight the use of recycled materials and energy-efficient manufacturing processes.

3. Segmentation based on usage occasions:

Apple recognizes that its products serve different purposes for different users and leverages this insight to target specific usage occasions. For instance, the iPhone's camera capabilities are heavily marketed towards photography enthusiasts and social media influencers who rely on high-quality images for their online presence. Apple's MacBook Pro, on the other hand, is positioned as a powerful workstation for professionals in fields such as graphic design, video editing, and software development. By segmenting its products based on specific usage occasions, Apple effectively communicates the benefits and features that are most relevant to each customer segment.

4. Segmentation based on loyalty and brand affinity :

Apple has successfully built a strong brand following and leverages this loyalty to further segment its target market . For example, Apple offers special discounts and trade-in programs for existing iPhone users, encouraging them to upgrade to the latest models. This strategy not only promotes customer retention but also attracts new customers who aspire to be part of the Apple ecosystem. By rewarding brand loyalty, Apple strengthens its relationship with its customers and encourages them to remain loyal to the brand.

Tips for implementing targeted segmentation strategies :

- Conduct thorough market research to identify the different segments within your target market.

- utilize data analytics and customer insights to understand the unique needs and preferences of each segment.

- Tailor your products, services, and marketing efforts to effectively reach and engage with each segment.

- Continuously monitor and evaluate the success of your segmentation strategies to ensure they remain relevant and effective.

Case studies like Apple's targeted segmentation strategy for iPhones and MacBooks provide valuable insights into how businesses can successfully implement segmentation strategies to drive growth and maintain a competitive edge in the market . By understanding the needs and preferences of different customer segments and tailoring their products and marketing efforts accordingly, companies can effectively reach and engage with their target audience , ultimately leading to increased customer satisfaction and business success .

Apples Targeted Segmentation Strategy for iPhones and MacBooks - Market segmentation case studies: Learning from successful segmentation strategies

One of the most successful examples of market segmentation in the e-commerce industry is Amazon. Known for its highly personalized approach, Amazon has revolutionized the way customers shop online. By leveraging customer data and advanced analytics, Amazon is able to segment its market effectively and deliver tailored experiences to each individual customer .

1. Utilizing Customer Data: Amazon collects vast amounts of customer data, including purchase history, browsing behavior, and demographic information. By analyzing this data, Amazon can gain valuable insights into customer preferences, interests, and buying patterns. This allows them to segment their market based on various factors such as age, location, and purchasing habits.

2. personalized recommendations : Amazon uses sophisticated algorithms to provide personalized product recommendations to each customer. These recommendations are based on the customer's browsing and purchase history, as well as the behavior of similar customers. By tailoring recommendations to individual preferences, Amazon enhances the customer's shopping experience and increases the likelihood of making a purchase.

3. Dynamic Pricing: Another aspect of Amazon's market segmentation strategy is dynamic pricing. Amazon adjusts prices in real-time based on factors such as demand, competition, and customer behavior. By offering different prices to different segments of customers, Amazon maximizes revenue and ensures competitive pricing for each individual customer.

For example, if a customer frequently purchases books in a specific genre, Amazon may offer a discount on new releases in that genre. On the other hand, if a customer has shown interest in a particular brand or product category, Amazon may send targeted discounts or promotions to encourage them to make a purchase.

4. One-Click Purchasing: Amazon's one-click purchasing feature is a prime example of how market segmentation can enhance the customer experience . By enabling customers to make a purchase with just one click, Amazon eliminates friction in the buying process and increases convenience. This feature is particularly effective for customers who make frequent purchases or have shown a high level of brand loyalty .

5. Prime Membership: Amazon's Prime membership program is another example of market segmentation. By offering exclusive benefits such as free two-day shipping, access to streaming services, and special discounts, Amazon targets customers who are willing to pay a premium for added convenience and perks. This segmentation strategy not only increases customer loyalty but also generates a significant source of recurring revenue for Amazon.

In conclusion, Amazon's personalized market segmentation approach in e-commerce has been instrumental in its success. By leveraging customer data, providing personalized recommendations, implementing dynamic pricing , offering one-click purchasing, and introducing a membership program, Amazon has created a highly tailored shopping experience for its customers . By learning from Amazon's segmentation strategies, businesses can enhance their own e-commerce practices and deliver exceptional customer experiences.

Amazons Personalized Market Segmentation Approach in E commerce - Market segmentation case studies: Learning from successful segmentation strategies

McDonald's, one of the world's largest fast-food chains, has successfully implemented a segmentation strategy that caters to different customer segments. By understanding the diverse needs and preferences of its customers, McDonald's has been able to design targeted marketing campaigns and offer customized products that resonate with each segment. Let's delve into some examples, tips, and case studies that highlight the effectiveness of McDonald's segmentation strategy.

1. Geographic Segmentation: McDonald's recognizes that consumer preferences vary across different regions and countries. For instance, in India, where a significant portion of the population follows a vegetarian diet, McDonald's introduced a separate menu with vegetarian options like the McAloo Tikki burger and the McVeggie burger. This adaptation to local preferences has allowed McDonald's to successfully penetrate the Indian market and attract a wide customer base.

2. Demographic Segmentation: McDonald's also tailors its offerings based on demographic variables such as age, gender, and income. The introduction of the Happy Meal, which includes a toy along with a child-sized meal, targets young children and their parents. This strategy not only appeals to children but also creates a sense of convenience and value for parents looking for a quick and enjoyable meal option for their kids.

3. Psychographic Segmentation: McDonald's understands that consumers have different lifestyles, attitudes, and interests. To cater to health-conscious individuals, McDonald's has expanded its menu to include salads, grilled chicken options, and fruit smoothies. This move aligns with the psychographic segment of customers who prioritize nutrition and wellness, providing them with healthier alternatives while still enjoying the convenience of fast food.

4. Behavioral Segmentation: McDonald's has also successfully employed behavioral segmentation by targeting different occasions and usage rates. For example, the introduction of the All-Day Breakfast menu was a response to customer demand for breakfast items beyond the traditional morning hours. This strategy not only attracted customers who prefer breakfast food at any time of the day but also increased overall sales by tapping into new customer segments.

5. cross-Selling and upselling : McDonald's excels at cross-selling and upselling by offering customers additional products or upgrades based on their initial purchase. For instance, when a customer orders a burger, the cashier may suggest adding fries or a drink to complete the meal. This technique not only increases the average transaction value but also enhances the overall customer experience by providing personalized recommendations.

In conclusion, McDonald's segmentation strategy showcases the importance of understanding and catering to different customer segments. By implementing geographic, demographic, psychographic, and behavioral segmentation, McDonald's has been able to meet the unique needs and preferences of its diverse customer base . Furthermore, their expertise in cross-selling and upselling has contributed to increased sales and customer satisfaction . As businesses seek to achieve success in today's competitive market , learning from McDonald's successful segmentation strategy can provide valuable insights and inspiration for creating effective marketing campaigns .

McDonalds Successful Segmentation Strategy for Different Customer Segments - Market segmentation case studies: Learning from successful segmentation strategies

One company that has successfully implemented innovative market segmentation strategies in the travel industry is Airbnb. By understanding the diverse needs and preferences of travelers, Airbnb has been able to effectively target different market segments and cater to their specific requirements. Here are some examples and case studies that highlight Airbnb's innovative approach to market segmentation:

1. Geographical Segmentation:

Airbnb recognizes that travelers have different preferences when it comes to destinations. To address this, they segment their market geographically and offer a wide range of accommodations in various locations around the world. For example, they have listings in popular tourist destinations like Paris, New York, and Bali, as well as in offbeat locations like rural villages and small towns. By catering to different geographical preferences, Airbnb is able to attract a diverse set of travelers.

Another way Airbnb segments its market is by targeting specific demographics. They understand that different age groups and lifestyles have different travel preferences. For instance, they have special categories like "Family-friendly" and "Business Travel Ready" to cater to the needs of families and business travelers respectively. By tailoring their offerings to specific demographics, Airbnb is able to provide a personalized experience for their users.

Airbnb also segments its market based on psychographic factors such as interests, values, and attitudes. They offer unique and themed accommodations that cater to specific interests, such as treehouses, castles, and eco-friendly lodgings. By understanding the psychographic profiles of their target market, Airbnb is able to provide tailored experiences that resonate with their customers' preferences.

4. Behavioral Segmentation:

To further refine their market segmentation strategy, Airbnb analyzes user behavior and preferences . They track user interactions on their platform, including search history, previous bookings, and reviews. This data allows them to understand individual preferences and recommend personalized listings to users. By leveraging behavioral segmentation , Airbnb enhances the user experience and increases customer satisfaction.

Tips for Implementing Innovative Market Segmentation:

- conduct thorough market research to understand the diverse needs and preferences of your target market.

- analyze customer data to identify patterns and segments within your market.

- Develop unique offerings and experiences that cater to specific market segments.

- Continuously monitor and adapt your segmentation strategy based on changing market dynamics .

- leverage technology and data analytics to personalize customer experiences and recommendations.

In conclusion, Airbnb's innovative market segmentation strategies have played a crucial role in their success in the travel industry. By effectively targeting different market segments and tailoring their offerings to meet specific needs and preferences, Airbnb has been able to provide a personalized and unique travel experience for their users. Through geographical, demographic, psychographic, and behavioral segmentation, Airbnb has demonstrated the importance of understanding and catering to diverse customer segments in the highly competitive travel industry.

Airbnbs Innovative Market Segmentation in the Travel Industry - Market segmentation case studies: Learning from successful segmentation strategies

1. understand your target audience : One of the most crucial aspects of market segmentation is gaining a deep understanding of your target audience . By conducting thorough research and analysis, you can identify the needs, preferences, and behaviors of different customer segments. This knowledge will enable you to tailor your marketing efforts and offerings to better meet the specific needs of each segment.

Example: A global clothing retailer conducted extensive market research to identify various customer segments based on demographics, lifestyles, and purchasing behaviors. They discovered that one segment consisted of environmentally conscious consumers who valued sustainable fashion. Using this insight, the retailer introduced a new line of eco-friendly clothing and targeted this segment with specific marketing campaigns focused on sustainability.

2. Use data-driven insights : Successful market segmentation relies on accurate and relevant data to inform decision-making . By leveraging data analytics tools and techniques, you can gain valuable insights into customer behavior, preferences, and purchasing patterns. This data-driven approach will allow you to create more effective segmentation strategies and maximize the impact of your marketing efforts .

Tip: Implement a customer relationship management (CRM) system to collect and analyze customer data . This will enable you to track customer interactions, segment your customer base , and personalize your marketing messages based on individual preferences.

3. Develop tailored marketing messages : Once you have identified different customer segments, it is important to craft tailored marketing messages that resonate with each group. By understanding the unique pain points, motivations, and aspirations of each segment, you can create targeted and compelling content that speaks directly to their needs.

Case study: An online travel agency segmented their customer base into two main groups: budget-conscious travelers and luxury seekers. They developed separate marketing campaigns for each segment , highlighting different aspects of their offerings. For the budget-conscious segment, they emphasized affordable travel deals and budget-friendly accommodations. For the luxury seekers, they showcased exclusive vacation packages and high-end hotel options. As a result, the agency saw an increase in bookings from both segments.

4. Continuously evaluate and adapt: Market segmentation is not a one-time exercise. It is an ongoing process that requires regular evaluation and adaptation. Consumer preferences and behaviors change over time, so it is crucial to monitor market trends , customer feedback, and competitor activities. By staying updated and flexible, you can refine your segmentation strategies to ensure they remain effective and relevant in a dynamic market environment.

Example: A software company regularly conducts customer surveys and analyzes customer feedback to evaluate the effectiveness of their market segmentation. They found that one of their segments, small business owners , had different software needs compared to larger enterprises. Based on this insight, the company developed a separate product offering tailored specifically for small businesses , resulting in increased sales and customer satisfaction within this segment.

In conclusion, successful market segmentation strategies require a deep understanding of your target audience, data-driven insights, tailored marketing messages, and continuous evaluation and adaptation. By implementing these key takeaways, businesses can effectively reach and engage with different customer segments , leading to improved customer satisfaction, increased sales, and sustainable growth in a competitive marketplace.

Lessons Learned from Successful Market Segmentation Strategies - Market segmentation case studies: Learning from successful segmentation strategies

In today's competitive business landscape , implementing effective market segmentation strategies is crucial for achieving sustainable success. By dividing a broad target market into smaller, more homogeneous segments, businesses can tailor their marketing efforts and offerings to meet the specific needs and preferences of each segment. Throughout this blog, we have explored various case studies and learned valuable lessons from successful segmentation strategies. In this concluding section, we will summarize the key takeaways and provide some additional tips for implementing market segmentation effectively.

1. Understand your customers: The foundation of successful market segmentation lies in a deep understanding of your customers . conduct market research to identify the different segments within your target market and gather data on their demographics, psychographics, behaviors, and preferences. This information will help you create meaningful segments that align with your business objectives .

2. Use multiple segmentation variables: While demographic variables like age, gender, and income are commonly used for segmentation, effective segmentation requires considering multiple variables. Psychographic variables such as values, attitudes, and lifestyle, as well as behavioral variables like purchasing habits and brand loyalty, can provide deeper insights into customer preferences and motivations.

3. Create distinct value propositions: Once you have identified your market segments, it is essential to develop unique value propositions for each segment. Tailor your marketing messages, product features, pricing, and distribution channels to address the specific needs and desires of each segment. By offering distinct value propositions, you can differentiate your brand and attract and retain customers within each segment.

4. Personalize marketing communications: personalization is key to successful market segmentation. Use the data collected during market research to personalize your marketing communications and deliver targeted messages to each segment. Leverage technology and automation tools to segment your customer database and send personalized emails, advertisements, and offers that resonate with each segment.

5. Monitor and adapt: Market segmentation is not a one-time process; it requires continuous monitoring and adaptation. Regularly review and analyze the performance of your segmented marketing efforts. Identify any changes in customer behavior or preferences and adjust your segmentation strategies accordingly. stay updated on market trends and competitor activities to ensure your segmentation remains relevant and effective.

Case Study: Coca-Cola

Coca-Cola is an excellent example of a company that has implemented effective market segmentation. They have successfully targeted different segments with their various product offerings, including regular Coke, Diet Coke, Coke Zero, and Coca-Cola Life. By understanding the diverse preferences and needs of their customers, Coca-Cola has been able to create distinct value propositions for each segment and maintain a strong market position.

Tips for Success:

- Continuously gather customer feedback and insights to refine your segmentation strategies.

- Collaborate with your sales and customer service teams to understand customer needs and preferences firsthand.

- test and experiment with different segmentation variables and criteria to find the most effective approach for your business.

- Invest in technology and analytics tools to analyze customer data and automate personalized marketing communications .

In conclusion, implementing effective market segmentation is crucial for business success in today's competitive landscape. By understanding your customers, using multiple segmentation variables, creating distinct value propositions, personalizing marketing communications, and continuously monitoring and adapting your strategies, you can effectively target and engage different market segments. Learn from successful case studies, apply the provided tips, and take action to implement market segmentation strategies that will drive your business towards sustainable growth and profitability.

Implementing Effective Market Segmentation for Business Success - Market segmentation case studies: Learning from successful segmentation strategies

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Market Segmentation

What is market segmentation?

The benefits of market segmentation, the basics of segmentation in marketing, types of market segmentation, how to get started with segmentation, market segmentation strategy, market segmentation use case examples, ensuring effective segments, common segmentation errors, qualtrics solutions for market segmentation, see how qualtrics strategic brand works, market segmentation: definition, types, benefits, & best practices.

21 min read Market segmentation helps you send the right message, every time, by efficiently targeting specific groups of consumers. Here’s how it works.

Segment membership

By understanding your market segments, you can leverage this targeting in product, sales, and marketing strategies . Market segments can power your product development cycles by informing how you create product offerings for different segments like men vs. women or high income vs. low income.

Read on to understand why segmentation is important for growth and the types of market segmentation to use to maximize the benefits for your business.

Free eBook: How to drive profits with customer segmentation

Companies who properly segment their market enjoy significant advantages. According to a study by Bain & Company , 81% of executives found that segmentation was crucial for growing profits. Bain also found that organizations with great market segmentation strategies enjoyed a 10% higher profit than companies whose segmentation wasn’t as effective over a 5-year period.

Other benefits include:

  • Stronger marketing messages : You no longer have to be generic and vague – you can speak directly to a specific group of people in ways they can relate to, because you understand their characteristics, wants, and needs.
  • Targeted digital advertising : Market segmentation helps you understand and define your audience’s characteristics, so you can direct your online marketing efforts to specific ages, locations, buying habits, interests etc.
  • Developing effective marketing strategies : Knowing your target audience gives you a head start about what methods, tactics and solutions they will be most responsive to.
  • Better response rates and lower acquisition costs : will result from creating your marketing communications both in ad messaging and advanced targeting on digital platforms like Facebook and Google using your segmentation.
  • Attracting the right customers : targeted, clear, and direct messaging attracts the people you want to buy from you.
  • Increasing brand loyalty : when customers feel understood, uniquely well served, and trusting, they are more likely to stick with your brand .
  • Differentiating your brand from the competition : More specific, personal messaging makes your brand stand out .
  • Identifying niche markets : segmentation can uncover not only underserved markets, but also new ways of serving existing markets – opportunities which can be used to grow your brand.
  • Staying on message : As segmentation is so linear, it’s easy to stay on track with your marketing strategies, and not get distracted into less effective areas.
  • Driving growth : You can encourage customers to buy from you again , or trade up from a lower-priced product or service.
  • Enhanced profits : Different customers have different disposable incomes; prices can be set according to how much they are willing to spend . Knowing this can ensure you don’t oversell (or undersell) yourself.
  • Product development : You’ll be able to design new products and services with the needs of your customers top of mind, and develop different products that cater to your different customer base areas.

Companies like American Express , Mercedes Benz , and Best Buy have all used segmentation strategies to increase sales, build better products, and engage better with their prospects and customers.

Understanding segmentation starts with learning about the various ways you can segment your market as well as different types of market segmentation. There are four primary categories of segmentation, illustrated below.

Demographic (B2C) Firmographic (B2B) Psychographic (B2B/B2C) Behavioral (B2B/B2C)
Classification based on individual attributes Classification based on company or organization attributes Classification based on behaviors like product usage, technology laggards, etc.
Geography Gender Education Level Income Level Industry Location Number of Employees Revenue Lifestyle Personality Traits Values Opinions
You are a smaller business or you are running your first project You are a smaller business or you are running your first project< You want to target customers based on values or lifestyle< You want to target customers based on purchase behaviors
Simpler Simpler More advanced More advanced

With segmentation and targeting, you want to understand how your market will respond in a given situation, like what causes people to purchase your products. In many cases, a predictive model may be incorporated into the study so that you can group individuals within identified segments based on specific answers to survey questions .

Qualtrics dashboard

Demographic segmentation

Demographic segmentation sorts a market by elements such as age, education, household income, marital status, family size, race, gender, occupation, and nationality. The demographic approach is one of the simplest and most commonly used types of market segmentation because the products and services we buy, how we use those products, and how much we are willing to spend on them is most often based on demographic factors. It’s also seen as a simple method of predicting future behavior, because target audiences with similar characteristics often behave in similar ways.

How to start demographic segmentation

Demographic segmentation is often the easiest because the information is the most readily available. You can send surveys directly to customers to determine their demographic data, or use readily available third party data such as government census data to gather further information.

Geographic segmentation

Geographic segmentation can be a subset of demographic segmentation, although it can also be a unique type of market segmentation in its own right. As its name suggests, it creates different target customer groups based on geographical boundaries. Because potential customers have needs, preferences, and interests that differ according to their geographies, understanding the climates and geographic regions of customer groups can help determine where to sell and advertise, as well as where to expand your business.

How to start geographic segmentation

Geographic segmentation data again can be solicited from customers through surveys or available third party market research data, or can be sourced from operational data such as IP addresses for website visitors.

Firmographic segmentation

Firmographic segmentation is similar to demographic segmentation, except that demographics look at individuals while firmographics look at organizations. Firmographic segmentation would consider things like company size, number of employees and would illustrate how addressing a small business would differ from addressing an enterprise corporation.

How to start firmographic segmentation

Firmographic segmentation data can be found in public listings for companies and information that the business makes available, as well as trade publications. Again, surveying existing and potential customers can help to build out this data.

Behavioral segmentation

Behavioral Segmentation divides markets by behaviors and decision-making patterns such as purchase, consumption, lifestyle, and usage. For instance, younger buyers may tend to purchase bottled body wash, while older consumer groups may lean towards soap bars. Segmenting markets based on purchase behaviors enables marketers to develop a more targeted approach, because you can focus on what you know they are looking for, and are therefore more likely to buy.

How to start behavioral segmentation

Of all the types of market segmentation, behavioral segmentation is likely best started with the information you have on an existing customer base. Though it can be bolstered by third party market research data, the information you already have on customer purchase and usage behavior will be the best predictor of future behavior.

Psychographic segmentation

Psychographic segmentation considers the psychological aspects of consumer behavior by dividing markets according to lifestyle, personality traits, values, opinions, and interests of consumers. Large markets like the fitness market use psychographic segmentation when they sort their customers into categories of people who care about healthy living and exercise.

How to start psychographic segmentation

Pychographic segmentation relies on data provided by the consumers themselves. Though market research might provide insights on what particular segments are most likely to believe or prefer, psychographic segmentation is best completed with information direct from the source. You can use survey questions with a qualitative focus to help draw out insights in the customers’ own voice.

On-demand webinar: How to drive product design and profits with customer segmentation

There are five primary steps to all marketing segmentation strategies:

  • Define your target market : Is there a need for your products and services? Is the market large or small? Where does your brand sit in the current marketplace compared to your competitors?
  • Segment your market : Decide which of the five criteria you want to use to segment your market: demographic, firmographic, psychographic, geographic, or behavioral. You don’t need to stick to just one – in fact, most brands use a combination – so experiment with each one to figure out which combination works best for your needs.
  • Understand your market : You do this by conducting preliminary research surveys, focus groups, polls , etc. Ask questions that relate to the segments you have chosen, and use a combination of quantitative (tickable/selectable boxes) and qualitative (open-ended for open text responses) questions.
  • Create your customer segments : Analyze the responses from your research to highlight which customer segments are most relevant to your brand.
  • Test your marketing strategy : Once you have interpreted your responses, test your findings by creating targeted marketing, advertising campaigns and more for your target market, using conversion tracking to see how effective it is. And keep testing. If uptake is disappointing, relook at your segments or your research methods and make appropriate changes.

Variable importance dashboard

Why should market segmentation be considered a strategy? A strategy is a considered plan that takes you from point A to point B in an effective and useful way. The market segmentation process is similar, as there will be times you need to revisit your market segments, such as:

In times of rapid change: A great example is how the Covid-19 pandemic forced a lot of businesses to rethink how they sell to customers. Businesses with physical stores looked at online ordering, while restaurant owners considered using food delivery services.

If your customers change, your market segmentation should as well, so you can understand clearly what your new customers need and want from you.

On a yearly basis: Market segments can change year over year as customers are affected by external factors that could alter their behavior and responses.

For example, natural disasters caused by global warming may impact whether a family chooses to stay living in an area prone to more of these events. On a larger scale, if your target customer segment moves away from one of your sales regions, you may want to consider re-focussing your sales activities in more populated areas.

At periodic times during the year: If you’ve explored your market and created market segments at one time of the year, the same market segments may have different characteristics in a different season. Seasonal segmentation may be necessary for better targeting.

For example, winter has several holidays, with Christmas being a huge influence on families. This holiday impacts your market segments’ buying habits, how they’ll behave (spending more than normal at this time than any other) and where they will travel (back home for the holidays). Knowing this information can help you predict and prepare for this period.

When considering updating your market segmentation strategy, consider these three areas:

  • Acknowledge what has changed: Find out what has happened between one time period and another, and what have been the driving forces for that change. By understanding the reasons why your market is different, you can make key decisions on whether you want to change your approach or stay the course.
  • Don’t wait to start planning: Businesses are always adapting to long-te r m trends , so refreshing market segmentation research puts you in a proactive place to tackle these changes head-on. Once you have your market segments, a good idea is to consider the long-term complications or risks associated with each segment, and forward-plan some time to discuss problem-solving if those issues arise.
  • Go from “what” to “why” : Why did those driving forces come about? Why are there risks with your target market? At Qualtrics, we partner with companies to understand the different aspects of target markets that drive or slow success. You’ll have the internal data to understand what’s happening; we help unleash insight into why with advanced modeling techniques. This helps you get smart market segmentation that is predictive and actionable, making it easier for future research and long-term segment reporting.

Where can you use market segmentation in your business? We’ve collected some use case scenarios to help you see how market segmentation can be built out across several departments and activities:

Market and opportunity assessments

When your business wants to enter into a new market or look for growth opportunities, market segmentation can help you understand the sales potential. It can assist in breaking down your research, by aligning your findings to your target audience groups.

For example, When you’ve identified the threats and opportunities within a new market, you can apply your customer segment knowledge to the information to understand how target customers might respond to new ideas, products, or services.

Segmentation and targeting

If you have your entire market separated into different customer segments,  then you have defined them by set criteria, like demographics, needs, priorities, common interests, or behavioral preferences .

With this information, you can target your products and services toward these market segments, making marketing messages and collateral that will resonate with that particular segment’s criteria.

Customer needs research

When you know a lot about your customers, you can understand where your business is connecting well with them and where there can be improvements.

Market segmentation can help with customer needs research (also known as habits and practices research) to deliver information about customer needs, preferences, and product or service usage. This helps you identify and understand gaps in your offerings that can be scheduled for development or follow-up.

Product development

If the product or service you’ve developed doesn’t solve a stated problem of your target audience or isn’t useful, then that product will have difficulty selling. When you know what each of your market segments cares about an/d how they live their lives, it’s easier to know what products will enrich or enhance their day-to-day activities.

Use market segmentation to understand your customers clearly , so that you can save time and money developing products and services that your customers will want to purchase.

Campaign optimization

Marketing and content teams will value having detailed information for each customer segment, as this allows them to personalize their campaigns and strategies at scale. This may lead to variations in messaging that they know will connect better with specific audiences, making their campaign results more effective.

When their marketing campaigns are combined with strong calls to action targeted to the specific segment, they will be a powerful tool that drives your target market segments towards your sales channels.

After you determine your segments, you want to ensure they’ll be useful. A good segmentation analysis should pass the following tests:

  • Measurable : Measurable means that your segmentation variables are directly related to purchasing a product. You should be able to calculate or estimate how much your segment will spend on your product. For example, one of your segments may be made up of people who are more likely to shop during a promotion or sale.
  • Accessible : Understanding your customers and being able to reach them are two different things. Your segments’ characteristics and behaviors should help you identify the best way to meet them. For example, you may find that a key segment is resistant to technology and relies on newspaper or radio ads to hear about store promotions, while another segment is best reached on your mobile app. One of your segments might be a male retiree who is less likely to use a mobile app or read email, but responds well to printed ads.
  • Substantial : The market segment must have the ability to purchase. For example, if you are a high-end retailer, your store visitors may want to purchase your goods but realistically can’t afford them. Make sure an identified segment is not just interested in you, but can be expected to purchase from you. In this instance, your market might include environmental enthusiasts who are willing to pay a premium for eco-friendly products, leisurely retirees who can afford your goods, and successful entrepreneurs who want to show off their wealth.
  • Actionable : The market segment must produce the differential response when exposed to the market offering. This means that each of your segments must be different and unique from each other. Let’s say that your segmentation reveals that people who love their pets and people who care about the environment have the same purchasing habits. Rather than having two separate segments, you should consider grouping both together in a single segment.

Market segmentation is not an exact science. As you go through the process, you may realize that segmenting based on behaviors doesn’t give you actionable segments, but behavioral segmentation does. You’ll want to iterate on your findings to ensure you’ve found the best fit for the needs of your marketing, sales and product organizations.

We’ve outlined the do’s , so here are some of the dont’s :

  • Avoid making your segments too small or specialized : Small segments may not be quantifiable or accurate, and can be distracting rather than insightful
  • Don’t just focus on the segment rather than the money : Your strategy may have identified a large segment, but unless it has the buying power and wants or needs your product, it won’t deliver a return on investment
  • Don’t be inflexible : Customers and circumstances change, so don’t let your segments become too entrenched – be prepared to let them evolve.

Market segmentation doesn’t need to be complicated to be effective. We would advise, though, to  get automated from the beginning . Forget spreadsheets – choose  market segmentation software  to measure and streamline your marketing strategy; as you grow, the technology will scale with you.

Innovative features such as Experience iD allow you to build your own customer segments and start personalizing experiences at scale based on the rich insights into your critical customer groups.

If you want to get a feel for your market segmentation upfront, before taking a step towards a streamlined and integrated system, trust us to take you through the research with our Market Segmentation Research service .

Related resources

Market fragmentation 9 min read, behavioral segmentation 20 min read, psychographic segmentation 11 min read, geographic segmentation 14 min read, demographic segmentation 14 min read.

Brand Perception

Brand Sentiment 18 min read

Brand intelligence 12 min read, request demo.

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short case study on market segmentation

Dana Stanley

Greenbook’s Chief Revenue Officer

Market Segmentation: One Method, Four Examples

Presented by TRC Insights

Effective market segmentation requires an understanding of the market and the skilled art of finding the appropriate segments. TRC gives four examples of this method's application with results.

Introduction

Companies segment their markets to improve their competitiveness and profitability in fundamental ways:

  • By focusing product development, marketing, and service resources on segments with the most potential, companies literally can multiply their marketing and service efficiency.
  • By developing products, services, and marketing messages that address those segments’ specific needs, they can greatly improve their share of the most desirable business. At the same time, by focusing on the needs of the most desirable customers, companies can improve retention of those customers.

Very often, companies shape their market segmentation using the results of market research and analysis. Market segmentation research is not designed to shape the market. Rather, it reveals underlying divisions in the market and characteristics of the market segments that can be used for effective and profitable marketing.

At the very least, segmentation research places the steps companies take on a firm factual foundation. Often, it also uncovers characteristics of the market that are not obvious and identifies ways of dividing and approaching the market that will be particularly effective. If these ways are not evident to competitors, the marketing impact of segmentation research can be even more beneficial.

At a more tactical level, market segmentation can make the choices a company faces in developing products, services, and marketing messages easier. Often, market segmentation shows that many conceivable combinations of interest in product features, combinations of service needs, or combinations of attitudes are actually very rare in the marketplace. As a result, there is no need for the company to be prepared to deal with these combinations.

Effective Segmentation

What makes a segmentation analysis valuable? Market segmentation research includes more “art” (although no less "science") than other types of market research. This is the case because analysis often turns up two or more different sets of segments, that is two or more different ways of dividing the market. For example, one analysis might subdivide a segment; another might not recognize that division.

In these circumstances, what counts is a segmentation scheme that the firm can implement to create real marketing advantages. Which scheme is best depends not just on which provides the best description of the market, but also on the company’s strengths and marketing goals:

  • For example, a company that is relatively large in its market might view a segment constituting 10% of the market as too small to serve as the foundation for a marketing strategy, no matter how desirable that segment is. A smaller firm in the same market, however, might see pursuit of the same segment as an exceptionally fruitful strategy.

Thus, the best segmentation analysis is the one that is most useful.

Deciding what Data Inputs to Use: Prior to carrying out a segmentation study, a firm should carefully consider what data inputs to use to ensure that the different segments identified can be targeted for actual marketing. If segments cannot be targeted, the most descriptive segmentation scheme may not be very useful.

SOM: In our segmentation projects, we have used a neural network based method that allows a computer to “learn” the structure of the market. The specific type of network used is called a "Self-Organizing Map" or SOM. SOMs have important advantages over other more traditional segmentation techniques:

  • SOMs show how many segments naturally exist in the market and how they are related to one another, rather than requiring the analyst to make assumptions about how many segments there are.
  • In our experience, the segments SOMs identify often are more distinct than those identified by cluster analysis, the most common type of segmentation analysis. We have seen this difference in studies where we used both techniques to analyze the same data.

The following brief case studies illustrate some uses our clients have made of market segmentation research using SOMs. Of course, findings are disguised where necessary to protect the proprietary interests of our clients.

Case 1: Personal Auto Insurance Buyers

Background: Our client, a national property/casualty insurer, distributes its personal and small commercial products through independent agents. This study was part of a reevaluation of its strategies, designed to determine:

  • Whether its market share might be increased by direct marketing to some households.
  • Whether doing so would conflict with agent activities.
  • Marketing themes and product features that could be used to differentiate it in different market segments.
  • The potential profitability of different segments.

Attitudinal, behavioral, and demographic data were gathered using a mail panel survey of 2000 U.S. households that own auto insurance. Geodemographic and credit information supplemented the survey responses.

Segments Identified: The study identified five segments, each making up 17% to 22% of the market.

  • "Non-Traditionals" were most interested in using the Internet and/or buying insurance at work.
  • Direct Buyers were more interested than others were in buying via direct mail or telephone.
  • "Budget Conscious" consumers were differentiated, primarily, by their interest in minimal coverage and their determination to find the best deal.
  • "Agent Loyals" expressed strong loyalty to their agents and interest in high levels of personal service.
  • "Hassle-Free" consumers were similar to "Agent Loyals," except that they were much less interested in high levels of faceto-face service.

Thus, attitudes toward distribution and service needs were key factors differentiating the segments. The segments also differed in other attitudes and in their potential profitability, as measured by total auto insurance premiums, other insurance products owned, and loyalty to their insurers.

Marketing Outcomes: The study showed which segments the client should target for distribution without agents. It also showed how to define the segments in actual target marketing. As it turned out, the analysis showed strong relationships between segment membership and information available in the databases insurers use in underwriting and direct marketing targeting

The study also provided guidance on which marketing messages to use with each segment.

Thus, this research provided a major input into our client’s decision about how to proceed with this potential new venture.

Case 2: Large Corporations as a Market for Risk Management

Background: Like other commercial insurers, our client for this study faced global consolidation of insurance carriers, a buyer’s market that was keeping prices and profitability down, inefficient distribution that hindered innovation, and wide variations in profitability from customer to customer.

In this context, our client wanted to accomplish three goals:

  • Identify segments interested in buying more value-added services from our client.
  • Identify segments that were interested in modified distribution in which the carrier would play a more active role rather than just waiting for brokers to bring business to them.
  • Identify segments that had the greatest profit potential, because they were likely to be loyal and interested in a broad range of services.

For this study, risk managers at about 400 of the 1500 largest U.S. corporations were interviewed. Their answers were supplemented by Dun & Bradstreet data and data on our clients’ relationships with them. (About 40% of the companies were our clients’ customers, to one extent or another.)

Segments Identified: The Self-Organizing Map technique identified four segments:

  • "Innovators," 37% of the market, were most interested in broader services, displayed high loyalty to their carriers, and had higher than average insurance expenditures.
  • "Rejecters" (26% of the firms) were characterized, mainly, by disliking current distribution arrangements. They displayed higher than average expenditures and medium loyalty to carriers.
  • "Limited Service" (20% of the market) firms had almost no interest in one of the core sets of insurance services, displayed low loyalty, and spent little on insurance and other risk management, relative to their size.
  • "Traditionalists" (17% of the market) liked traditional roles for carriers and the distribution system. They were very risk averse and displayed medium loyalty to their carriers.

Comparing these segment characteristics to our client's experiences with respondents' firms that fell into the different segments, we found that "innovators" were most likely to buy a broad range of service and did show strong customer retention. Firms in other segments also tended to act as the segmentation suggested they would. Thus, our client’s actual experience confirmed the segmentation findings.

Marketing Outcomes: These results contributed to new product/service packages our client developed.

Targeting these companies was relatively easy, because like other commercial insurers our client was in touch with risk managers at virtually all of these large corporations. Given this situation, our client asked us to develop a series of questions that could be asked to assign firms to the segments.

This article was written by Rajan Sambandam of TRC, a full-service market research provider located in Fort Washington, PA.

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Market Segmentation: One Method, Four Examples

Hero Image: Market Segmentation: One Method, Four Examples

Introduction

Companies segment their markets to improve their competitiveness and profitability in fundamental ways:

  • By focusing product development, marketing and service resources on segments with the most potential, companies literally can multiply their marketing and service efficiency.
  • By developing products, services, and marketing messages that address those segments’ specific needs, they can greatly improve their share of the most desirable business. At the same time, by focusing on the needs of the most desirable customers, companies can improve retention of those customers.

Very often, companies shape their market segmentation using the results of market research and analysis. Market segmentation research is not designed to shape the market. Rather, it reveals underlying divisions in the market and characteristics of the market segments that can be used for effective and profitable marketing.

At the very least, segmentation research places the steps companies take on a firm factual foundation. Often, it also uncovers characteristics of the market that are not obvious and identifies ways of dividing and approaching the market that will be particularly effective. If these ways are not evident to competitors, the marketing impact of segmentation research can be even more beneficial.

At a more tactical level, market segmentation can make the choices a company faces in developing products, services, and marketing messages easier. Often, market segmentation shows that many conceivable combinations of interest in product features, combinations of service needs, or combinations of attitudes are actually very rare in the marketplace. As a result, there is no need for the company to be prepared to deal with these combinations.

Effective Segmentation

What makes a segmentation analysis valuable? Market segmentation research includes more “art” (although no less “science”) than other types of market research. This is the case because analysis often turns up two or more different sets of segments, that is, two or more different ways of dividing the market. For example, one analysis might subdivide a segment; another might not recognize that division.

In these circumstances, what counts is a segmentation scheme that the firm can implement to create real marketing advantages. Which scheme is best depends not just on which provides the best description of the market, but also on the company’s strengths and marketing goals:

  • For example, a company that is relatively large in its market might view a segment constituting 10% of the market as too small to serve as the foundation for a marketing strategy, no matter how desirable that segment is. A smaller firm in the same market, however, might see pursuit of the same segment as an exceptionally fruitful strategy.

Thus, the best segmentation analysis is the one that is most useful.

Deciding what Data Inputs to Use

Prior to carrying out a segmentation study, a firm should carefully consider what data inputs to use to ensure that the different segments identified can be targeted for actual marketing. If segments cannot be targeted, the most descriptive segmentation scheme may not be very useful.

Self-Organizing Map

In our segmentation projects, we have used a neural network based method that allows a computer to “learn” the structure of the market. The specific type of network used is called a “Self-Organizing Map” or SOM. SOMs have important advantages over other more traditional segmentation techniques:

  • SOMs show how many segments naturally exist in the market and how they are related to one another, rather than requiring the analyst to make assumptions about how many segments there are.
  • In our experience, the segments SOMs identify often are more distinct than those identified by cluster analysis, the most common type of segmentation analysis. We have seen this difference in studies where we used both techniques to analyze the same data.

The following brief case studies illustrate some uses our clients have made of market segmentation research using SOMs. Of course, these segmentation research examples are disguised where necessary to protect the proprietary interests of our clients.

Case 1: Personal Auto Insurance Buyers

Background : Our client, a national property/casualty insurer, distributes its personal and small commercial products through independent agents. This study was part of a reevaluation of its strategies, designed to determine:

  • Whether its market share might be increased by direct marketing to some households
  • Whether doing so would conflict with agent activities
  • Marketing themes and product features that could be used to differentiate it in different market segments
  • The potential profitability of different segments.

Attitudinal, behavioral, and demographic data were gathered using a mail panel survey of 2000 U.S. households that own auto insurance. Geodemographic and credit information supplemented the survey responses.

Segments Identified : The study identified five insurance market segments, each making up 17% to 22% of the market.

  • “Non-Traditionals” were most interested in using the Internet and/or buying insurance at work.
  • “Direct Buyers” were more interested than others were in buying via direct mail or telephone.
  • “Budget Conscious” consumers were differentiated, primarily, by their interest in minimal coverage and their determination to find the best deal.
  • “Agent Loyals” expressed strong loyalty to their agents and interest in high levels of personal service.
  • “Hassle-Free” consumers were similar to “Agent Loyals,” except that they were much less interested in high levels of face-to-face service.

Thus, attitudes toward distribution and service needs were key factors differentiating the segments. The segments also differed in other attitudes and in their potential profitability, as measured by total auto insurance premiums, other insurance products owned, and loyalty to their insurers.

Marketing Outcomes : The study showed which segments the client should target for distribution without agents. It also showed how to define the segments in actual target marketing. As it turned out, the analysis showed strong relationships between segment membership and information available in the databases insurers use in underwriting and direct marketing targeting.

The study also provided guidance on which marketing messages to use with each segment.

Thus, this research provided a major input into our client’s decision about how to proceed with this potential new venture.

Case 2: Large Corporations as a Market for Risk Management

Background : Like other commercial insurers, our client for this study faced global consolidation of insurance carriers, a buyer’s market that was keeping prices and profitability down, inefficient distribution that hindered innovation, and wide variations in profitability from customer to customer.

In this context, our client wanted to accomplish three goals:

  • Identify segments interested in buying more value-added services from our client
  • Identify segments that were interested in modified distribution in which the carrier would play a more active role rather than just waiting for brokers to bring business to them
  • Identify segments that had the greatest profit potential, because they were likely to be loyal and interested in a broad range of services

For this study, risk managers at about 400 of the 1500 largest U.S. corporations were interviewed. Their answers were supplemented by Dun & Bradstreet data and data on our clients’ relationships with them. (About 40% of the companies were our clients’ customers, to one extent or another.)

Segments Identified : The Self-Organizing Map technique identified four segments.

  • “Innovators,” (37% of the market), were most interested in broader services, displayed high loyalty to their carriers, and had higher than average insurance expenditures.
  • “Rejecters” (26% of the firms) were characterized, mainly, by disliking current distribution arrangements. They displayed higher than average expenditures and medium loyalty to carriers.
  • “Limited Service” (20% of the market) firms had almost no interest in one of the core sets of insurance services, displayed low loyalty, and spent little on insurance and other risk management, relative to their size.
  • “Traditionalists” (17% of the market) liked traditional roles for carriers and the distribution system. They were very risk averse and displayed medium loyalty to their carriers.

Comparing these segment characteristics to our client’s experiences with respondents’ firms that fell into the different segments, we found that “Innovators” were most likely to buy a broad range of service and did show strong customer retention. Firms in other segments also tended to act as the segmentation suggested they would. Thus, our client’s actual experience confirmed the segmentation findings.

Marketing Outcomes : These results contributed to new product/service packages our client developed.

Targeting these companies was relatively easy, because like other commercial insurers, our client was in touch with risk managers at virtually all of these large corporations. Given this situation, our client asked us to develop a series of questions that could be asked to assign firms to the segments.

Case 3: A Bank’s Transaction Account Holders

Background : A regional bank offered a multi-featured deposit product that had attracted many of its customers. However, most customers who had the account were using only a few of its features, and maintaining all of the features for all of the customers was costly.

Therefore, our client wanted to tailor a series of accounts to specific customer segments, to match products to customer needs and tastes, optimize usage of product features, and cement customer loyalty.

This segmentation analysis did not include a survey. Rather, it relied entirely on customer account data the bank provided. As a practical matter, any segmentation of the account holders for marketing purposes would have to rely on customer account data in any case. Therefore, including survey or other outside data in the segmentation analysis itself would not have been helpful.

Segments Identified : The SOM method was used to analyze the records of all 50,000 holders of the account. The segmentation yielded three segments.

  • The “Committed” (47% of the account holders) had the highest balances, were most likely to use multiple services, and in virtually all cases, had checking accounts in addition to the deposit product.
  • The “Active” (36% of the account holders) carried out the most frequent transactions, maintained low balances, and were least likely to use multiple services.
  • The “Parkers” (17% of the account holders) had high CD balances, nearly universal incidence of CD accounts, and limited transactions.

Marketing Outcomes : Once the segments were identified, we carried out a telephone survey to explore the financial needs and attitudes of each segment. Then, three account versions were created each with its own features and marketing plan, reflecting marketplace needs and priorities.

Case 4: The Household Market for Credit Information

Background : A major credit bureau was our client for this study. Like other firms in its business, it had been exploring selling credit information not just to companies that grant credit, but to consumers as well.

In this study, as in the auto insurance segmentation study mentioned previously, a consumer panel was used to collect the survey data. Geodemographic data were added to the survey records, particularly to explore ways of targeting direct mail, should that sort of marketing prove appropriate. Because of regulatory constraints, the segmentation analysis could not include credit information.

Segments Identified : The SOM segmentation analysis identified four clearly defined segments, based on differences in a series of consumer behaviors and attitudes. The segments are described very briefly to avoid compromising confidential information.

  • One of the four segments, constituting just 13% of the respondents, was far more interested in buying comprehensive credit information than the other segments. Their distinctive needs and attitudes suggested that our client offer a multi-featured product, substantially more expensive than the products our client had offered in the past. As it turned out, this segment was very readily targetable. Its relatively small size is actually an advantage, because together with the ease of targeting, it should result in very efficient marketing.
  • Two of the four segments, totaling 58% of households, showed considerable interest in buying credit information, but less interest in an elaborate product than the first segment. Most of our client’s current buyers come from these segments.
  • The fourth segment (29%) had very little interest in either credit or credit information.

Marketing Outcomes : Once the four segments were identified, the study’s marketing implications were obvious. We recommended vigorous product development and marketing efforts to take advantage of the opportunity presented by the first segment. For the second and third segments, we recommended somewhat enhanced marketing along the same lines as earlier marketing of our client’s consumer credit information product. We recommended that our client not spend resources marketing to the fourth segment.

What the Studies Accomplished

Each of these studies achieved four goals for the company that commissioned it:

  • First, each study identified the underlying structure of the market involved. While some of the dimensions along which each market was divided were what one would expect, in each study at least one segment or dimension along which segments were divided was a surprise, and one that clarified the structure of the market and provided unforeseen marketing opportunities.
  • The segments identified in each study were differentiated in terms of their interest in products and services and the benefits they sought from products in the category. The three studies that included survey research also identified differences in attitudes that could be tapped in marketing.
  • Each segmentation study showed differences among the segments in potential profitability, to the extent that indicators of probable profitability could be included in the study.
  • Each study suggested how the segments could be targeted in actual marketing.

We believe that segmentation research using SOMs can be beneficial to many other firms as well. We hope to have an opportunity to discuss it with you.

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MetLife: A Case Study in Customer Segmentation

short case study on market segmentation

In 2015, MetLife began a year-long brand discovery process that centered around using data and machine learning to develop a more refined view of their customer segments and enable a more nuanced go to market strategy. By better understanding their customers' needs, attitudes, and behaviors, MetLife hoped to gain a competitive advantage in targeting and better serving an increasingly demanding set of customers.

In 2015, MetLife began a year-long brand discovery process that resulted in what they would later call “the most significant change to their brand in over 30 years”. [i]  At the core of this strategic refresh, was a fundamentally data driven approach, enabled by advances in machine learning, that revealed to MetLife that the insurance landscape around them was changing: Technological innovations such as the proliferation of internet connections and increased penetration of mobile devices changed the way business was done. [ii] Disruptive newcomers, such as Lemonade, were redefining the market place with their simplified approaches to underwriting. And despite that, customer and shareholder expectations were higher than ever. [iii] In the months that followed, MetLife interviewed and surveyed more than 50,000 customers and with the help of big data clustering techniques used the information to better understand and segment their customers and subsequently redesign their go to market approach. [iii] As an employee of Bain and Company, working with the MetLife team, I had the privilege to see the beginnings of the transformation firsthand.

Rethinking customer segmentation

Traditionally, insurance organizations tried to glean directional insights about their customers’ needs, attitudes, and behaviors through demographics. [iv] In the case of retail customers, age tended to be an important demographic that proxied attainment of certain life stages and thus the sophistication of the individual customer. In the case of corporate customers, the number of employees tended to be an important demographic that proxied sophistication of the organization. Armed with these types of rudimentary insights, insurers would use their best judgement in deciding the bundle of products to offer customers. However, using only demographics, insurers had at best only a rough outline of who their customers were let alone what they wanted or how to target them.

To better understand their customers, MetLife strove to “move from basic demographics and life stages to a view based on mindsets and attitudes.” [v] They collected data on their customers through in-depth surveys designed to extract a combination of demographic, firmographic, attitudinal, and need-type information. Using advanced segmentation tools, survey respondents were clustered into distinct groups based on their individual survey responses resulting in, for the first time in the company’s history, a refined picture of who their customers were. These groups (or segments) provided a new way to think about allocating resources against the pursuit of the “right” customers. Publicly available results of one such clustering (dates back to 2013 corresponding to some earlier work with segmentation), and the strategic targeting implications, are shown in the images below. [vi]

short case study on market segmentation

Pathways to Just Digital Future

short case study on market segmentation

The path forward

As part of their brand refresh, MetLife committed to a data-driven approach “focused on identifying the right customers and creating truly differentiated customer value propositions.” [iii] They committed to an $800 million net annual savings target which they expect to be at full run rate by 2020. [iii] MetLife management stated that realizing the savings would require an estimated $1 billion in investments, a significant portion of which was in technology aimed at getting better data to fuel their increasingly robust data analytics capabilities. [iii]

Further, a core aspect of the customer segmentation work that MetLife engaged in was predicated on the idea that ideal customer segments needed to be “strategic and tactical in nature.” [vii] As part of the of the customer segmentation work, members of the sales force were made aware of the customer segments and given tools to help them effectively engage with target customers.

MetLife took its segmentation practices one step further and began educating its corporate customers, encouraging them to think about their employees through a combination of demographic and psychographic data. [v] MetLife’s business offerings now include “helping HR leaders select their benefits and adjust current programs to suit their diverse employees.” [v]

In many ways, MetLife’s data-driven strategic refresh was significant moment for the company and the broader insurance industry. It applied machine learning towards sales generation when most traditional insurance companies were focused on applying machine learning solely from a risk and improved underwriting perspective.

Going forward, MetLife should continue to embed machine learning deeper within their organization. A 2017 McKinsey article outlined four broad areas where machine learning could create value for an organization: projecting (forecasting), producing (operations), promoting (sales and marketing) and providing (enhanced user experiences). [viii]

short case study on market segmentation

MetLife’s efforts in this strategic refresh focused on promoting. Going forward, management should be cognizant not to neglect other areas in which machine learning can add value to the organization.

Ultimately, are sequential improvements in the way MetLife uses machine learning enough to give them a competitive advantage over disruptive newcomers, or is some form of transformational improvement necessary for them to remain relevant?

(768 words)

[i] Stout, Craig. 2016. “The Power Of A Customer Centered Approach – The Metlife Rebrand”.  Brand And Marketing Consultancy | Prophet . https://www.prophet.com/2016/10/power-customer-centered-approach-metlife-rebrand/ .

[ii] OECD (2017), Technology and innovation in the insurance sector, accessed November 2018

[iii] Metlife inc corporate investor day – final. (2016, Nov 10). Fair Disclosure Wire Retrieved from http://search.proquest.com.ezp-prod1.hul.harvard.edu/docview/1842918111?accountid=11311

[iv] Carr, Mark, and Amy Modini. 2012. “A New Approach To Segmentation For The Changing Insurance Industry”.  Cmbinfo.Com . https://www.cmbinfo.com/cmb-cms/wp-content/uploads/2012/03/HealthDoc_FINAL.pdf .

[v] “Building Stronger Engagement Through Employee Segmentation | Workforce”. 2018.  Metlife.Com . https://www.metlife.com/workforce/stronger-engagement-segmentation/ .

[vi] Mehra, Sanjay, and Leah van Zelm. 2013. “Segmentation. Customer Strategy Done Right – PDF”.  Docplayer.Net . https://docplayer.net/13983641-Segmentation-customer-strategy-done-right.html .

[vii] Barlyn, Suzanne. 2017. “Metlife To Invest $1 Billion In Tech To Reach Cost-Savings Goals”.  U.S. . https://www.reuters.com/article/us-metlife-investment-technology-idUSKBN17T2R6 .

[viii] Bughin, Jacques, Eric Hazan, James Manyika, and Jonathan Woetzel. 2017. “Artificial Intelligence The Next Digital Frontier”.  Mckinsey Global Institute , 5.

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Market Segmentation, Targeting and Positioning Case Study

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STP framework consists of three components: segmentation, targeting, and positioning. Each of these elements plays a significant role in building organizations’ strategic value. Market segmentation is defined as a process of apportionment of a mass market into specific and recognizable segments, each of them having common features and demonstrating identical reactions to marketing actions (Baines & Fill 2014). With the help of this process, companies can choose particular target segments and establish marketing plans focused on satisfying the specific requirements of potential consumers. Determining the segments is regarded as an opportunity (Baines & Fill 2014).

Two major groups of variables are employed in segmentation: descriptive considerations (demographic, geographic, and psycho-graphic) and behavioral characteristics (customers’ responses to brands and benefits) (Kotler & Keller 2012). Descriptive features enable researchers to analyze customers’ responses to products. Behavioral considerations help to identify whether various features are related to each particular consumer-reaction segment (Kotler & Keller 2012).

Market segmentation is based on a principle that every consumer has different needs and purchasing behavior. With the help of this component of STP framework, companies can identify what segments should be targeted. Market targeting is defined as a set of consumers with similar characteristic features that an organization wants to serve (Zimmerman & Blythe 2013). Segments can be targeted in two ways: by evaluating the appeal of each sector and by scrutinizing the ability of a company to serve particular segments (Dibb & Simkin 2013).

Targeting may be undifferentiated, differentiated, and concentrated. When a company uses undifferentiated targeting, it concentrates on similarities present in all segments but at the same time makes an effort to satisfy the whole market with a single marketing mix. This type of targeting most frequently occurs in the initial phases of a product lifecycle when consumers are bound to accept the product because they have no alternative (Zimmerman & Blythe 2013).

Undifferentiated marketing ends when competition appears. Differentiated marketing is employed when a company creates particular marketing mixes to serve every segment. The cost of this type of targeting is higher than that of undifferentiated marketing. The third kind of targeting – concentrated – is suitable for companies with limited resources (Zimmerman & Blythe 2013). When using this type of targeting, an organization can afford to focus on as little as one or several segments with the aim of building dominance in that sector.

The third component of STP framework is positioning. Positioning takes place when the processes of segmentation and targeting have been completed. Market positioning is defined as establishing a set of features and advantages that will help to single out the brand in consumers’ perception (Andaleeb 2017). The main members of any company’s audience are consumers and employees (Bruggerman et al. 2012). Therefore, positioning helps to suggest the products in a way that is most attractive for the audience.

Segmentation is the element of STP framework that bears the highest strategic value for organizations since it serves as a basis for targeting and positioning. An example of a company that successfully utilizes demographic segmentation is Victoria’s Secret (Kotler & Keller 2012). The brand focuses on female consumers, and its primary aim was to satisfy the US women with the lingerie shopping experience similar to the European one. The evidence of the organization’s use of key concepts presented in this week’s learning resources is in constant growth of its annual sales and popularity all over the world.

Reference List

Andaleeb, SS 2017, ‘Market segmentation, targeting, and positioning’, in SS Andaleeb & K Hasan (eds), Strategic marketing management in Asia: case studies and lessons across industries , Emerald, Bingley, UK, pp. 179-208.

Baines, P & Fill, C 2014, Marketing , 3rd edn, Oxford University Press, Oxford, UK.

Bruggerman, J, Grunow, D, Leenders, MAAM, Vermeulen, I & Kuilman, JG 2012, ‘Market positioning: the shifting effects of niche overlap’ , Industrial and Corporate Change , vol. 21, no. 6, pp. 1451-1477.

Dibb, S & Simkin, L 2013, Market segmentation success: making it happen! Routledge, New York, NY.

Kotler, P & Keller, K 2012, Marketing management , 14th edn, Pearson, New York, NY.

Zimmerman, A & Blythe, J 2013, Business to business marketing management: a global perspective , 2nd edn, Routledge, New York, NY.

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IvyPanda. (2020, November 4). Market Segmentation, Targeting and Positioning. https://ivypanda.com/essays/market-segmentation-targeting-and-positioning/

"Market Segmentation, Targeting and Positioning." IvyPanda , 4 Nov. 2020, ivypanda.com/essays/market-segmentation-targeting-and-positioning/.

IvyPanda . (2020) 'Market Segmentation, Targeting and Positioning'. 4 November.

IvyPanda . 2020. "Market Segmentation, Targeting and Positioning." November 4, 2020. https://ivypanda.com/essays/market-segmentation-targeting-and-positioning/.

1. IvyPanda . "Market Segmentation, Targeting and Positioning." November 4, 2020. https://ivypanda.com/essays/market-segmentation-targeting-and-positioning/.

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IvyPanda . "Market Segmentation, Targeting and Positioning." November 4, 2020. https://ivypanda.com/essays/market-segmentation-targeting-and-positioning/.

August 27, 2021

Customer segmentation in retail: 6 powerful client case studies, are you still talking to all of your customers the same way in today’s hyper-competitive retail environment, that just won’t cut it. you need to use customer segmentation to send each customer unique communications and offers. here are 6 case studies demonstrating the value of customer segmentation..

short case study on market segmentation

Customer insights and segmentation can help you unlock a new competitive advantage, identify opportunities to grow customer lifetime value, and optimize campaign performance.

By employing data-driven customer segmentation, you can improve your performance across every sales channel and customer touchpoint. Customer data platforms (CDPs) like Lexer can help you manage your data effectively, create valuable customer segments, and automatically update audiences across other retail systems.

In fact, Lexer is the CDP of choice for leading brands like Quiksilver, Igloo, Nine West, Rip Curl, Supergoop!, and more. Here are 6 case studies from brands and retailers who have used Lexer's customer segmentation tools to implement data-driven retail strategies and drive results.

Customer segmentation case studies for acquisition

Black diamond.

An excellent customer segmentation example as it pertains to customer acquisition in the retail space is the case of Black Diamond. The business aimed at growing its direct-to-consumer business to improve personalization, acquisition, and retention. This is with a backdrop of a healthy wholesale business and a small DTC team without a dedicated IT team that could provide actionable customer insight.

Black Diamond enlisted the help of the Lexer team to overcome these challenges. The team was in charge of providing customer data and gathering insights into their behaviors. The insights helped the brand develop an agile strategy for customer acquisition and retention campaigns across all its channels.

Using the Lexer CDP, Black Diamond was able to cut their cost-per-acquisition (CPA) in half and double their return on ad spend (ROAS) . Additionally, there was a 1,101% increase in the revenue per email when targeting lapsed customers. All of this was achieved using a 5-phased process which included collecting and analyzing historical data, targeted lead generation, and using Lexer's high-value lookalike audiences to improve customer acquisition.

Brand Collective

With the advent of Covid-19, Brand Collective was looking for a way to drive online sales as the performance of their traditional brick-and-mortar stores had significantly been affected. The brand wanted data on their customer base as they looked for new ways to engage these new customers who were increasingly digital-first shoppers.

Using the Lexer CDP, Brand Collective was able to gain holistic customer data in real-time. The easy-to-use Lexer platform built targeted segments across all marketing channels, including their email, mobile, and search. These yielded an action plan that helped the brand take on new opportunities and avoid the risks of the ever-evolving marketplace.

The Lexer team enabled Brand Collective to customize their digital campaigns and messages sent to their segmented audiences. This drove a 220% increase in return-on-ad-spend, a 2x increase in new customer acquisition, and a 5x increase in revenue from paid channels.

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Customer segmentation case studies for lifetime value growth.

The global surfing brand Rip Curl needed intelligent segmentation to help them identify high-level customers. Additionally, the team wanted to see an increase in impact while still minimizing its digital marketing campaign budget.

The brand decided on Lexer’s CDP to help it gain insights, perform advanced segmentation, and target customers. Additionally, Lexer helped them orchestrate omnichannel campaigns.

By working with the Lexer team, Rip Curl achieved an in-depth understanding of its customer, which would give the brand the insights it needed for high-value customer acquisition. Additionally, due to the advanced audience segmentation and automation, the business could now benefit from customer lifetime value growth.

Specific results included the achievement of 93% more revenue per segmented campaign in August and 15x higher income than the benchmark for Lexer segments.

PAS Group wanted to significantly reduce ad wastage, re-engage lapsed customers, and create unique customer experiences . Additionally, the group wanted its brands to stand out and grow revenue within the highly competitive fashion and apparel industry. All of these would be made possible by linking all customer data to help with data-centric decision-making.

Using Lexer's CDP, the brand was able to segment its customer audiences and deliver targeted campaigns to recent and lapsed customers on paid social and email. This resulted in a 4x return on their advertisement spending and an 18x overall return on investment. These were achieved through the unification of all online and offline purchase data with loyalty and engagement data, all of which provided a holistic view of PAS Group customer data.

Customer segmentation case studies for retention

Wondercide wanted to rely on the traditional direct mail in conjunction with digital campaigns to help with re-engaging high-value customers. By measuring key customer retention metrics and understanding the factors driving retention in their business, they were able to improve retention rates significantly.

Using the Lexer CDP, Wondercide sent out personalized direct mail postcards that drove an ROI of 600%. The direct mail reengagement campaign targeted lapsed and opted-out customers whose last order was within the previous year. It also targeted inactive customers who hadn’t interacted with the business within two years and lapsed customers whose previous orders had been more than two years past. As a result, the business experienced a 310% ROI for the opted-out segment, 203% ROI for the inactive segment, and 155% for the lapsed segment.

Mountain Khakis

In a bid to increase its holiday seasons sales, Mountain Khakis used the real-time insights provided by Lexer's CDP to activate segmented campaigns. Specifically, the brand was able to retarget its female gift-buyers with a "treat yourself” campaign that saw a 7.1x increase in sales 2-3 weeks post the campaign.

Additionally, the campaign resulted in a 5x return on ad spend from female customers. This translated to a 49% boost in sales just in time for Christmas and a 47% boost in total customers.

Effective customer segmentation begins with mastering your data

As a business, you need to lean on customer intelligence to orchestrate specific high-value customer segmentation.

Lexer’s customer data and experience platform provides you with customer insights tools , data enrichment tools , segmentation tools, and predictive analytics tools that helps your business identify and target the right audience. As the only CDP built for retail with native tools to support every customer touchpoint, we are well equipped to help you drive incremental sales from improved customer engagement.

Book a demo today to see how Lexer's powerful segmentation and personalization tools can help you drive incremental sales growth.

Speak with our retail experts.

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Market Segmentation in Marketing Education: A Case Study

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Marketing in Higher Education: Myth or Reality

Preference for instructional method as a segmentation variable for m.b.a. programs.

Alderson, Wroe (1965). Dynamic Marketing Behavior . Homewood: Richard D. Irwin.

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McLaughlin, Daniel J. (1974), "Problems, Aspirations and Expectations of Modern ‘Commodity’ Marketing Programs," 1974 Combined Proceedings . American Marketing Association, 576–579.

Murphy, Patrick E. (1979), "The Need for Consumer Research in Higher Education" 1979 Educators’ Conference Proceedings . Chicago: American Marketing Association, 110–115.

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Lord, J.B., Baverty, J.L. (2015). Market Segmentation in Marketing Education: A Case Study. In: Lindquist, J.D. (eds) Proceedings of the 1984 Academy of Marketing Science (AMS) Annual Conference. Developments in Marketing Science: Proceedings of the Academy of Marketing Science. Springer, Cham. https://doi.org/10.1007/978-3-319-16973-6_44

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10 Marketing Case Study Examples: Learn How to Master Them in Your Campaigns

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There are millions of blog posts, articles, and videos across the internet that try to give you advice about marketing. According to Google, at least 7,050,000 unique content pieces include the phrase “marketing tips.”

But with plenty of outdated and filler content creation to just build out a website, it’s hard to find applicable advice that actually works online.

In this article, you’ll learn from marketing case study examples that demonstrate what it takes to master channels like social media, email marketing , and PPC, as well as how to use case studies in your own campaigns.

Don’t rely on empty words. Learn powerful marketing best practices that are backed up with examples and data.

What is a marketing case study?

In marketing, a case study is an in-depth study of the effectiveness of a certain tool, tactic, or strategy. It focuses on measurable outcomes, like an increase in sales, visitors, or production hours.

Typically, it includes a few key elements:

  • Introduction to the customer/client
  • The problem the client needed to solve (should align with problems prospective clients also need to solve)
  • The solution (and context of why your company/software was the right fit)
  • Data from before and after implementing the solution

diagram of the elements of a case study

In a sense, a case study documents the journey of working with your company. And it gives potential future customers a reason to trust your company.

What are the different types of case studies in marketing?

In marketing, there are three main types of case studies that are commonly used:

1. Third-person or client case studies: These highlight the experience of a specific client working with your company or using your product.

2. Explanatory case studies: These case studies explore the impact of a phenomenon or tactic, such as the company’s marketing strategy, and how it impacted their growth. In this case, it’s not based on first-hand experience, but rather observation and inference.

3. Implementation case studies: An implementation case study takes the average client case study a bit further, focusing on the actual implementation and covering it in detail.

You can also divide the case studies further by the type of medium they use — video or text.

And in 2021, video case studies are becoming more and more popular. Many companies even use them as remarketing ads to address potential objections.

Why should you use case studies?

Case studies are a powerful way to prove that your products or services work, showcase your expertise, and build trust with potential customers.

It’s a way to transition away from just “telling” your customer and instead start “showing” them through examples. There’s a reason the old copywriting maxim goes, “Show, don’t tell.”

Consumers’ trust in companies to tell the truth in advertising materials is lower than ever. In 2020, only 14% of consumers said they trust advertising to be honest about a product or service.

But that doesn’t mean you can’t generate trust with your company’s website.

Consumers trust third-party reviews, testimonials, and data. In fact, 91% of 18–34-year-olds trust online reviews as much as personal recommendations.

So you need social proof. And client case studies — especially those that interview the current clients — are the best of both worlds. You get to highlight data while getting powerful social proof that shows that your product works.

When just adding a simple customer testimonial to your website can increase conversion rates by up to 34% , imagine what a detailed, compelling case study can do.

1. Email marketing case study: Your Therapy Source

If you think that email is a medium of the past, think again. At ActiveCampaign, we have hundreds of recent case studies that prove the opposite.

For example, Your Therapy Source receives a 2000% return on investment (ROI) from our campaigns simply by taking advantage of basic marketing automation .

Your Therapy Source marketing case study

In particular, a basic abandoned cart email represents around 30% of all revenue generated by automations.

With ActiveCampaign, that’s incredibly easy to set up. You can take advantage of our integrations with key e-commerce platforms like WooCommerce , Shopify , and more.

abandoned cart automation using ActiveCampaign's automation builder

Because the case study goes into detail about exactly how the company achieved the results, it’s a combination of an implementation case study and a regular third-person case study.

2. Instagram marketing case study: Converse

If you look at all the top Instagram accounts in clothing, Converse has a much higher engagement rate than its competitors.

At 1.79%, their social media posts have an organic engagement rate over 15 times higher than Nike.

boomsocial screenshot showing how Converse has a higher engagement rate than NIke

Why is that?

Let’s take a closer look at how they achieve these numbers:

When looking at Converse’s top Instagram posts, you quickly notice a trend. Collaborations with influential creators and artists — lately Tyler, the Creator — get a different level of engagement.

Tyler the Creator and Converse Instagram post case study example

The post promoting their new collaboration shoe got over 183,000 likes in a few weeks. Converse even took it a step further and produced a short film with Tyler.

If you want to reach a wider number of people, combining audiences is a great strategy.

instagram post showing cross-collaboration between Converse and Tyler the Creator

This is an example of an explanatory case study.

First, we worked backward from Converse’s powerful Instagram results. Then, we identified tactics that contribute to their high levels of engagement.

Because we didn’t work directly with Converse, and we’re only observing as an outsider, this is an explanatory case study.

3. Content marketing case study: porch.com

Fractl is a content marketing agency that worked with porch.com for over a year to earn 931 unique domain links, 23,000 monthly organic visits, and more.

Fractl link building case study showing how they earned 931 unique domains for Porch.com in a year

The case study focuses on results over method — that means it’s a typical third-person case study.

They’re showcasing the results the company generated for a specific outside client without getting into the how-to.

These types of case studies are most useful for persuading hesitant potential customers to get on board. Showing that you’ve generated results for similar companies or people in the past is the best way to prove your skill set.

Depending on your target audience, going into detail with an implementation case study may be a better option.

4. SEO case study: Zapier study by Ryan Berg

This in-depth case study by Ryan Berg is a perfect example of how you can use explanatory case studies in your marketing.

It breaks down Zapier’s SEO strategy and how they created over 25,000 unique landing pages to improve their search rankings for different search terms.

blog post by Ryan Berg demonstrating a Zapier case study

Zapier’s main strategy revolves around targeting relevant long-tail keywords like “app A + app B integration.” That’s the key they used to generate serious organic traffic over the long term.

By breaking down industry leaders and how they rose to success, you can borrow some of their brand power and credibility.

You can use these kinds of case studies if your current clients don’t allow you to go into detail about the tactics you use to grow their online presence.

These case studies demonstrate to potential clients that you know what you’re talking about and have the expertise needed to help them succeed in their industry.

5. PPC case study: Google Ads and Saraf Furniture

When it comes to pay-per-click (PPC) advertising, Google was one of the earliest innovators. And in 2021, it’s still the largest digital advertiser globally, with $146.92 billion in ad revenue in 2020.

You might not think they need any more credibility, but Google still uses case studies, especially in emerging markets like India.

This case study shows how Google Ads helped Saraf Furniture generate 10 times more inbound leads each month and hire 1,500 new carpenters as a result.

Google Ads case study showing impact for Saraf Furniture

Without going into details about the methods, it’s another typical third-person case study designed to build trust.

6. Video marketing case study: L’Oréal and YouTube

In this case study, various members of L’Oréal’s global marketing team break down exactly how they used YouTube ads to launch a new product.

As a result of the campaign, they were able to establish their new product as the No. 2 in its category and earn 34% of all mass sales across a network of online retailers.

The case study breaks down how they used YouTube for different stages — from awareness to loyalty. It’s another example of a third-person implementation case study.

7. Remarketing case study: AdRoll and Yoga Democracy

AdRoll is a remarketing platform that tracks your visitors and lets you show them targeted ads across the internet.

Their case study with Yoga Democracy perfectly showcases the power of the platform.

remarketing case study between Adroll and Yoga Democracy

Look at these highlights:

  • 200% increase in conversions
  • 50% reduction in CPA
  • 19% of total revenue attributed to AdRoll

These are metrics you’d love to show any potential customer. The case study goes into detail about how they built an effective remarketing campaign, including cart recovery emails and ads.

Because of the detail, you can classify this as an implementation case study.

8. Influencer marketing case study: Trend and WarbyParker

This influencer marketing case study from Warby Parker and Trend showcases how you can use influencer marketing even with a limited budget.

Warby Parker influencer marketing case study

The “Wearing Warby” campaign was centered around showcasing influencers wearing Warby Parker glasses in their everyday life.

From mundane tasks like eating breakfast to artists creating a new masterpiece — it showcased Warby Parker’s products in use and made the brand more approachable for influencers’ followers.

This is another third-person case study, as it doesn’t go into much detail beyond the results.

9. Customer experience case study: App Annie and Coca-Cola

In this case study, Greg Chambers, the director of innovation for Coca-Cola, explains what App Annie brings to the table.

Instead of specific numbers and metrics, it focuses on the big-picture benefits that App Annie has on Coca-Cola’s customer experience.

The video interview format is also perfect for driving trust with potential customers.

Again, this is a typical third-person case study that you see a lot in the marketing world.

10. SaaS case study: Asana and Carta

Of course, it’s not just agencies and advertising platforms that need to master the use of case studies in digital marketing.

Let’s explore an example of a case study outside the marketing industry, in this case specifically for B2B marketers.

Asana is a project management platform that helps companies make their workflows more efficient.

Asana marketing case study for Carta

It’s a good example of a case study that focuses more on the lived experience and less on the metrics.

This is a third-person case study that is closer to a client interview or testimonial, which is a good option if it’s hard to quantify improvements with metrics.

Best practices: How to use case studies in your own marketing campaigns

best practices of using case studies in marketing

In this section, you’ll learn best practices to help you maximize the value of case studies in your own marketing campaigns.

Let’s look at four steps you can take to effectively use case studies.

Include a dedicated case study/customer stories page on your website

Most companies with a successful online presence have one of these pages. Emulate the top competitors in your industry by creating an improved version of their pages.

You can also add a case studies section to your resources page or blog.

Build CTAs into your case study pages

The chances are low that a random Googler will make it to your case studies. Most likely, it’s someone who thinks they might need your product.

So don’t be afraid to include calls to action throughout your case study pages.

Share case studies as part of your email marketing campaigns

Email marketing is hands-down the best channel for nurturing potential needs . That means you should always use case studies and customer success stories in your campaigns.

But it’s important that it doesn’t feel too promotional. Instead, share the unique steps they took to ensure success to deliver value, not just pitch.

Use case study video ads to overcome objections

When you’re thinking about buying a product, it’s easy to talk yourself out of it.

“It’s too expensive.” “It won’t work for me.” There are a lot of excuses and objections out there.

A case study video can be a powerful tool to overcome these objections in potential buyers.

Don’t overlook case studies when you’re planning your next marketing campaign. Towards the bottom end of the funnel, in stages like decision and action, they’re a powerful marketing tool.

When used right, case studies will help you fill your sales pipeline and provide your sales team with qualified leads.

Hopefully, the examples in this article taught you how you can use case studies in social media, email, and content marketing strategy to further your business goals.

You should also have learned how to use case studies to sell your company’s expertise.

If you want to grow your business, it’s crucial to learn from the people who have gone before you. In marketing, trying to learn all principles from scratch through trial and error would be a costly mistake.

If you’re ready to take advantage of marketing automation and email marketing tools that help similar businesses generate ROIs of 20x or higher, start your ActiveCampaign trial today .

No credit card required. Instant set-up.

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It has never been more difficult for brands to engage with customers in a way that ensures relevance, secures conversion, drives loyalty, and maximizes lifetime value.

Sports streaming giant DAZN (pronounced “da zone”) was faced with this very challenge. The CRM team needed to be able to understand the significance of customer behaviors so they could tailor campaigns, communications, and messages, and send them at the right moment on the right channel.

In this case study, you will learn how DAZN overcame the challenge by transforming its event-led tactics into customer-led marketing with Optimove.

Key Takeaways:

  • Putting an end to rigid, event-led campaigns     Before Optimove, DAZN had a CRM strategy in place that was comprised of rigid, event-led campaigns and limited segmentations, which were based on just one type of customer interest.
  • Reducing churn and increasing revenues   This approach did not support their goals of improving customer retention and driving new revenue opportunities. 
  • Understanding customer behavior & driving personalization   The company needed a deeper and broader understanding of customer behaviors, so it could predict which campaigns would be most effective and know how to tailor communications to each customer’s needs and preferences. 
  • Implementing a whole new, customer-led approach to campaigns   The Optimove Customer-Led Platform was selected for its ability to power customer insight discovery, adapt in real time to dynamic customer behaviors, and orchestrate highly personalized marketing campaigns. 
  • Enhancing customer loyalty, retention, and lifetime value   Now, DAZN is creating multiple segmentation layers and micro-segments, identifying the optimal channel for execution, gaining visibility into new and updated behavioral trends, and more, enhancing engagement, experiences, and customer lifetime value.      “Our CRM plans are continuing to evolve, and Optimove is helping us to pivot away from primarily event led campaigns to a much more personalized, customer behavior-led approach,”    Andrew Stewart, Senior CRM Manager, Technology, DAZN.  

DAZN is a global leader in providing live and on-demand sports streaming services. Its platform is home to some of the world’s most popular and important sporting events, including the Super Bowl, El Clasico, Formula 1, and more, and is available in over 200 countries.

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A need for a new approach for new revenues  

When DAZN started moving more and more towards multiple products, services, subscription models, and markets, it realized that it also needed a new approach to meeting their key CRM KPIs: 

  • Increasing on-platform engagement whether by providing new information about content that customers are already aware of or by exposing them to new content.  
  • Cross-selling new contents, products, and services.  
  • Reducing churn and winning back customers who had cancelled their subscription.  
  • Delivering the best possible customer experience. 

Its long-time objective as a subscription company – to ensure that customer subscriptions remain active – could no longer be the driving force of the CRM team’s strategy and tactics. 

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Old tactics just don’t make the grade  

Traditionally, the CRM team’s targeting strategy had been driven by behavior-based segmentation.

It entailed identifying the customer’s viewing activity and building segmentations based on engagement with one specific type of content, sport, favorite team, or event.

This approach presents a challenge because it is rigid and lacks the flexibility and adaptability required for segmenting customers beyond a single parameter.

DAZN needed a way to determine all the types of content that customers are engaging with on the platform, such as boxing, soccer, and basketball, instead of just Manchester United.

This is the only way to gain the insights required for increasing engagement and growing revenues.

Additional challenges included:

  • SQL for campaign set up was complex and required technical and analytical expertise.
  • Automated lifecycle journeys triggered at customer touchpoints such as cancellation along with event-led campaigns meant that granular personalization was impossible.
  • No easy access to insights into what was working with their campaigns and what wasn’t, kept implementing timely fixes based on actual performance out of reach.

The wish list  

To help the team achieve its CRM goals, DAZN was looking to be able to create smarter segmentations for smarter targeting, and to do so easily and quickly.

They needed to be able to create customer profiles that are based on more than one dimension, to know when their customers prefer to receive communications, as well as to identify similar cohorts of users, and do all this fast.

In addition, the DAZN team also needed to make sure that they were sending the right messages to the right customers, at the right time, and on the right channel.

And finally, it was critical to empower CRM managers with simplified campaign build, management, and performance measurement.

short case study on market segmentation

In comes Customer-Led Marketing  

“So, when looking at what we needed for our marketing CDP, we felt that Optimove provided the best fit for addressing some of the pain points of our previous stack.”

To help it upgrade its marketing stack DAZN came to Optimove. And now, with customer-led marketing, the team has overcome the main challenges to meeting its strategic KPIs, having implemented the five key building blocks of its smarter targeting:

  • A bespoke customer model for gaining a more granular view of both active customers and lapsed users.
  • Insights into purchase history , or in DAZN’s case ‘streaming history’, for easily understanding viewing behavior at the individual customer level, including what content they’re watching, how they’re watching it, and when.
  • The Optimove Mission Control dashboard for single-view monitoring and analysis of all marketing campaigns, with prioritization that enables targeting the right customers with the right messaging.
  • Intuitive target group creation , having replaced SQL audience builds, for ease and simplicity.
  • Campaign KPI definition with the ability to easily define both test and control audiences for gaining insights into campaign efficacy and making timely changes when required.

“We’ve made some big leaps forward in how we operate on a day-to-day basis.”

The Guide to Advance Customer Segmentation

Go in depth on advanced segmentation with this guide which was written based on analyzing tens of thousands of segments across Optimove’s customer base. 

Looking ahead

In just a few short months, more than 100,000 unique campaigns having been delivered across every stage of the customer lifecycle. And all of DAZN’s marketing and service communications, across email, push, in-app messaging, and social audiences are now managed with Optimove’s Customer-Led Platform.

And that’s just the beginning.

short case study on market segmentation

For more insights on how to benefit from Customer-Led Marketing, contact us today – or request a Web demo .

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Rob Wyse is Senior Director of Communications at Optimove. As a communications consultant, he has been influential in changing public opinion and policy to drive market opportunity. Example issues he has worked on include climate change, healthcare reform, homeland security, cloud transformation, AI, and other timely issues.

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Content Marketing Institute

B2B Content Marketing Benchmarks, Budgets, and Trends: Outlook for 2024 [Research]

B2B Content Marketing Trends for 2024

  • by Stephanie Stahl
  • | Published: October 18, 2023
  • | Trends and Research

Creating standards, guidelines, processes, and workflows for content marketing is not the sexiest job.

But setting standards is the only way to know if you can improve anything (with AI or anything else).

Here’s the good news: All that non-sexy work frees time and resources (human and tech) you can apply to bring your brand’s strategies and plans to life.  

But in many organizations, content still isn’t treated as a coordinated business function. That’s one of the big takeaways from our latest research, B2B Content Marketing Benchmarks, Budgets, and Trends: Outlook for 2024, conducted with MarketingProfs and sponsored by Brightspot .

A few symptoms of that reality showed up in the research:

  • Marketers cite a lack of resources as a top situational challenge, the same as they did the previous year.
  • Nearly three-quarters (72%) say they use generative AI, but 61% say their organization lacks guidelines for its use.
  • The most frequently cited challenges include creating the right content, creating content consistently, and differentiating content.

I’ll walk you through the findings and share some advice from CMI Chief Strategy Advisor Robert Rose and other industry voices to shed light on what it all means for B2B marketers. There’s a lot to work through, so feel free to use the table of contents to navigate to the sections that most interest you.

Note: These numbers come from a July 2023 survey of marketers around the globe. We received 1,080 responses. This article focuses on answers from the 894 B2B respondents.

Table of contents

  • Team structure
  • Content marketing challenges

Content types, distribution channels, and paid channels

  • Social media

Content management and operations

  • Measurement and goals
  • Overall success
  • Budgets and spending
  • Top content-related priorities for 2024
  • Content marketing trends for 2024

Action steps

Methodology, ai: 3 out of 4 b2b marketers use generative tools.

Of course, we asked respondents how they use generative AI in content and marketing. As it turns out, most experiment with it: 72% of respondents say they use generative AI tools.

But a lack of standards can get in the way.

“Generative AI is the new, disruptive capability entering the realm of content marketing in 2024,” Robert says. “It’s just another way to make our content process more efficient and effective. But it can’t do either until you establish a standard to define its value. Until then, it’s yet just another technology that may or may not make you better at what you do.”

So, how do content marketers use the tools today? About half (51%) use generative AI to brainstorm new topics. Many use the tools to research headlines and keywords (45%) and write drafts (45%). Fewer say they use AI to outline assignments (23%), proofread (20%), generate graphics (11%), and create audio (5%) and video (5%).

Content Marketing Trends for 2024: B2B marketers use generative AI for various content tasks.

Some marketers say they use AI to do things like generate email headlines and email copy, extract social media posts from long-form content, condense long-form copy into short form, etc.

Only 28% say they don’t use generative AI tools.

Most don’t pay for generative AI tools (yet)

Among those who use generative AI tools, 91% use free tools (e.g., ChatGPT ). Thirty-eight percent use tools embedded in their content creation/management systems, and 27% pay for tools such as Writer and Jasper.

AI in content remains mostly ungoverned

Asked if their organizations have guidelines for using generative AI tools, 31% say yes, 61% say no, and 8% are unsure.

Content Marketing Trends for 2024: Many B2B organizations lack guidelines for generative AI tools.

We asked Ann Handley , chief content officer of MarketingProfs, for her perspective. “It feels crazy … 61% have no guidelines? But is it actually shocking and crazy? No. It is not. Most of us are just getting going with generative AI. That means there is a clear and rich opportunity to lead from where you sit,” she says.

“Ignite the conversation internally. Press upon your colleagues and your leadership that this isn’t a technology opportunity. It’s also a people and operational challenge in need of thoughtful and intelligent response. You can be the AI leader your organization needs,” Ann says.

Why some marketers don’t use generative AI tools

While a lack of guidelines may deter some B2B marketers from using generative AI tools, other reasons include accuracy concerns (36%), lack of training (27%), and lack of understanding (27%). Twenty-two percent cite copyright concerns, and 19% have corporate mandates not to use them.

Content Marketing Trends for 2024: Reasons why B2B marketers don't use generative AI tools.

How AI is changing SEO

We also wondered how AI’s integration in search engines shifts content marketers’ SEO strategy. Here’s what we found:

  • 31% are sharpening their focus on user intent/answering questions.
  • 27% are creating more thought leadership content.
  • 22% are creating more conversational content.

Over one-fourth (28%) say they’re not doing any of those things, while 26% say they’re unsure.

AI may heighten the need to rethink your SEO strategy. But it’s not the only reason to do so, as Orbit Media Studios co-founder and chief marketing officer Andy Crestodina points out: “Featured snippets and people-also-ask boxes have chipped away at click-through rates for years,” he says. “AI will make that even worse … but only for information intent queries . Searchers who want quick answers really don’t want to visit websites.

“Focus your SEO efforts on those big questions with big answers – and on the commercial intent queries,” Andy continues. “Those phrases still have ‘visit website intent’ … and will for years to come.”

Will the AI obsession ever end?

Many B2B marketers surveyed predict AI will dominate the discussions of content marketing trends in 2024. As one respondent says: “AI will continue to be the shiny thing through 2024 until marketers realize the dedication required to develop prompts, go through the iterative process, and fact-check output . AI can help you sharpen your skills, but it isn’t a replacement solution for B2B marketing.”

Back to table of contents

Team structure: How does the work get done?

Generative AI isn’t the only issue affecting content marketing these days. We also asked marketers about how they organize their teams .

Among larger companies (100-plus employees), half say content requests go through a centralized content team. Others say each department/brand produces its own content (23%), and the departments/brand/products share responsibility (21%).

Content Marketing Trends for 2024: In large organizations, requests for B2B content often go through a central team.

Content strategies integrate with marketing, comms, and sales

Seventy percent say their organizations integrate content strategy into the overall marketing sales/communication/strategy, and 2% say it’s integrated into another strategy. Eleven percent say content is a stand-alone strategy for content used for marketing, and 6% say it’s a stand-alone strategy for all content produced by the company. Only 9% say they don’t have a content strategy. The remaining 2% say other or are unsure.

Employee churn means new teammates; content teams experience enlightened leadership

Twenty-eight percent of B2B marketers say team members resigned in the last year, 20% say team members were laid off, and about half (49%) say they had new team members acclimating to their ways of working.

While team members come and go, the understanding of content doesn’t. Over half (54%) strongly agree, and 30% somewhat agree the leader to whom their content team reports understands the work they do. Only 11% disagree. The remaining 5% neither agree nor disagree.

And remote work seems well-tolerated: Only 20% say collaboration was challenging due to remote or hybrid work.

Content marketing challenges: Focus shifts to creating the right content

We asked B2B marketers about both content creation and non-creation challenges.

Content creation

Most marketers (57%) cite creating the right content for their audience as a challenge. This is a change from many years when “creating enough content” was the most frequently cited challenge.

One respondent points out why understanding what audiences want is more important than ever: “As the internet gets noisier and AI makes it incredibly easy to create listicles and content that copy each other, there will be a need for companies to stand out. At the same time, as … millennials and Gen Z [grow in the workforce], we’ll begin to see B2B become more entertaining and less boring. We were never only competing with other B2B content. We’ve always been competing for attention.”

Other content creation challenges include creating it consistently (54%) and differentiating it (54%). Close to half (45%) cite optimizing for search and creating quality content (44%). About a third (34%) cite creating enough content to keep up with internal demand, 30% say creating enough content to keep up with external demand, and 30% say creating content that requires technical skills.

Content Marketing Trends for 2024: B2B marketers' content creation challenges.

Other hurdles

The most frequently cited non-creation challenge, by far, is a lack of resources (58%), followed by aligning content with the buyer’s journey (48%) and aligning content efforts across sales and marketing (45%). Forty-one percent say they have issues with workflow/content approval, and 39% say they have difficulty accessing subject matter experts. Thirty-four percent say it is difficult to keep up with new technologies/tools (e.g., AI). Only 25% cite a lack of strategy as a challenge, 19% say keeping up with privacy rules, and 15% point to tech integration issues.

Content Marketing Trends for 2024: Situational challenges B2B content creation teams face.

We asked content marketers about the types of content they produce, their distribution channels , and paid content promotion. We also asked which formats and channels produce the best results.

Popular content types and formats

As in the previous year, the three most popular content types/formats are short articles/posts (94%, up from 89% last year), videos (84%, up from 75% last year), and case studies/customer stories (78%, up from 67% last year). Almost three-quarters (71%) use long articles, 60% produce visual content, and 59% craft thought leadership e-books or white papers. Less than half of marketers use brochures (49%), product or technical data sheets (45%), research reports (36%), interactive content (33%), audio (29%), and livestreaming (25%).

Content Marketing Trends for 2024: Types of content B2B marketers used in the last 12 months.

Effective content types and formats

Which formats are most effective? Fifty-three percent say case studies/customer stories and videos deliver some of their best results. Almost as many (51%) names thought leadership e-books or white papers, 47% short articles, and 43% research reports.

Content Marketing Trends for 2024: Types of content that produce the best results for B2B marketers.

Popular content distribution channels

Regarding the channels used to distribute content, 90% use social media platforms (organic), followed by blogs (79%), email newsletters (73%), email (66%), in-person events (56%), and webinars (56%).

Channels used by the minority of those surveyed include:

  • Digital events (44%)
  • Podcasts (30%)
  • Microsites (29%)
  • Digital magazines (21%)
  • Branded online communities (19%)
  • Hybrid events (18%)
  • Print magazines (16%)
  • Online learning platforms (15%)
  • Mobile apps (8%)
  • Separate content brands (5%)

Content Marketing Trends for 2024: Distribution channels B2B marketers used in the last 12 months.

Effective content distribution channels

Which channels perform the best? Most marketers in the survey point to in-person events (56%) and webinars (51%) as producing better results. Email (44%), organic social media platforms (44%), blogs (40%) and email newsletters (39%) round out the list.

Content Marketing Trends for 2024: Distributions channels that produce the best results for B2B marketers.

Popular paid content channels

When marketers pay to promote content , which channels do they invest in? Eighty-six percent use paid content distribution channels.

Of those, 78% use social media advertising/promoted posts, 65% use sponsorships, 64% use search engine marketing (SEM)/pay-per-click, and 59% use digital display advertising. Far fewer invest in native advertising (35%), partner emails (29%), and print display ads (21%).

Effective paid content channels

SEM/pay-per-click produces good results, according to 62% of those surveyed. Half of those who use paid channels say social media advertising/promoted posts produce good results, followed by sponsorships (49%), partner emails (36%), and digital display advertising (34%).

Content Marketing Trends for 2024: Paid channels that produce the best results for B2B marketers.

Social media use: One platform rises way above

When asked which organic social media platforms deliver the best value for their organization, B2B marketers picked LinkedIn by far (84%). Only 29% cite Facebook as a top performer, 22% say YouTube, and 21% say Instagram. Twitter and TikTok see 8% and 3%, respectively.

Content Marketing Trends for 2024: LinkedIn delivers the best value for B2B marketers.

So it makes sense that 72% say they increased their use of LinkedIn over the last 12 months, while only 32% boosted their YouTube presence, 31% increased Instagram use, 22% grew their Facebook presence, and 10% increased X and TikTok use.

Which platforms are marketers giving up? Did you guess X? You’re right – 32% of marketers say they decreased their X use last year. Twenty percent decreased their use of Facebook, with 10% decreasing on Instagram, 9% pulling back on YouTube, and only 2% decreasing their use of LinkedIn.

Content Marketing Trends for 2024: B2B marketers' use of organic social media platforms in the last 12 months.

Interestingly, we saw a significant rise in B2B marketers who use TikTok: 19% say they use the platform – more than double from last year.

To explore how teams manage content, we asked marketers about their technology use and investments and the challenges they face when scaling their content .

Content management technology

When asked which technologies they use to manage content, marketers point to:

  • Analytics tools (81%)
  • Social media publishing/analytics (72%)
  • Email marketing software (69%)
  • Content creation/calendaring/collaboration/workflow (64%)
  • Content management system (50%)
  • Customer relationship management system (48%)

But having technology doesn’t mean it’s the right technology (or that its capabilities are used). So, we asked if they felt their organization had the right technology to manage content across the organization.

Only 31% say yes. Thirty percent say they have the technology but aren’t using its potential, and 29% say they haven’t acquired the right technology. Ten percent are unsure.

Content Marketing Trends for 2024: Many B2B marketers lack the right content management technology.

Content tech spending will likely rise

Even so, investment in content management technology seems likely in 2024: 45% say their organization is likely to invest in new technology, whereas 32% say their organization is unlikely to do so. Twenty-three percent say their organization is neither likely nor unlikely to invest.

Content Marketing Trends for 2024: Nearly half of B2B marketers expect investment in additional content management technology in 2024.

Scaling content production

We introduced a new question this year to understand what challenges B2B marketers face while scaling content production .

Almost half (48%) say it’s “not enough content repurposing.” Lack of communication across organizational silos is a problem for 40%. Thirty-one percent say they have no structured content production process, and 29% say they lack an editorial calendar with clear deadlines. Ten percent say scaling is not a current focus.

Among the other hurdles – difficulty locating digital content assets (16%), technology issues (15%), translation/localization issues (12%), and no style guide (11%).

Content Marketing Trends for 2024: Challenges B2B marketers face while scaling content production.

For those struggling with content repurposing, content standardization is critical. “Content reuse is the only way to deliver content at scale. There’s just no other way,” says Regina Lynn Preciado , senior director of content strategy solutions at Content Rules Inc.

“Even if you’re not trying to provide the most personalized experience ever or dominate the metaverse with your omnichannel presence, you absolutely must reuse content if you are going to deliver content effectively,” she says.

“How to achieve content reuse ? You’ve probably heard that you need to move to modular, structured content. However, just chunking your content into smaller components doesn’t go far enough. For content to flow together seamlessly wherever you reuse it, you’ve got to standardize your content. That’s the personalization paradox right there. To personalize, you must standardize.

“Once you have your content standards in place and everyone is creating content in alignment with those standards, there is no limit to what you can do with the content,” Regina explains.

Why do content marketers – who are skilled communicators – struggle with cross-silo communication? Standards and alignment come into play.

“I think in the rush to all the things, we run out of time to address scalable processes that will fix those painful silos, including taking time to align on goals, roles and responsibilities, workflows, and measurement,” says Ali Orlando Wert , senior director of content strategy at Appfire. “It takes time, but the payoffs are worth it. You have to learn how to crawl before you can walk – and walk before you can run.”

Measurement and goals: Generating sales and revenue rises

Almost half (46%) of B2B marketers agree their organization measures content performance effectively. Thirty-six percent disagree, and 15% neither agree nor disagree. Only 3% say they don’t measure content performance.

The five most frequently used metrics to assess content performance are conversions (73%), email engagement (71%), website traffic (71%), website engagement (69%), and social media analytics (65%).

About half (52%) mention the quality of leads, 45% say they rely on search rankings, 41% use quantity of leads, 32% track email subscribers, and 29% track the cost to acquire a lead, subscriber, or customer.

Content Marketing Trends for 2024: Metrics B2B marketers rely on most to evaluate content performance.

The most common challenge B2B marketers have while measuring content performance is integrating/correlating data across multiple platforms (84%), followed by extracting insights from data (77%), tying performance data to goals (76%), organizational goal setting (70%), and lack of training (66%).

Content Marketing Trends for 2024: B2B marketers' challenges with measuring content performance.

Regarding goals, 84% of B2B marketers say content marketing helped create brand awareness in the last 12 months. Seventy-six percent say it helped generate demand/leads; 63% say it helped nurture subscribers/audiences/leads, and 58% say it helped generate sales/revenue (up from 42% the previous year).

Content Marketing Trends for 2024: Goals B2B marketers achieved by using content marketing in the last 12 months.

Success factors: Know your audience

To separate top performers from the pack, we asked the B2B marketers to assess the success of their content marketing approach.

Twenty-eight percent rate the success of their organization’s content marketing approach as extremely or very successful. Another 57% report moderate success and 15% feel minimally or not at all successful.

The most popular factor for successful marketers is knowing their audience (79%).

This makes sense, considering that “creating the right content for our audience” is the top challenge. The logic? Top-performing content marketers prioritize knowing their audiences to create the right content for those audiences.

Top performers also set goals that align with their organization’s objectives (68%), effectively measure and demonstrate content performance (61%), and show thought leadership (60%). Collaboration with other teams (55%) and a documented strategy (53%) also help top performers reach high levels of content marketing success.

Content Marketing Trends for 2024: Top performers often attribute their B2B content marketing success to knowing their audience.

We looked at several other dimensions to identify how top performers differ from their peers. Of note, top performers:

  • Are backed by leaders who understand the work they do.
  • Are more likely to have the right content management technologies.
  • Have better communication across organizational silos.
  • Do a better job of measuring content effectiveness.
  • Are more likely to use content marketing successfully to generate demand/leads, nurture subscribers/audiences/leads, generate sales/revenue, and grow a subscribed audience.

Little difference exists between top performers and their less successful peers when it comes to the adoption of generative AI tools and related guidelines. It will be interesting to see if and how that changes next year.

Content Marketing Trends for 2024: Key areas where B2 top-performing content marketers differ from their peers.

Budgets and spending: Holding steady

To explore budget plans for 2024, we asked respondents if they have knowledge of their organization’s budget/budgeting process for content marketing. Then, we asked follow-up questions to the 55% who say they do have budget knowledge.

Content marketing as a percentage of total marketing spend

Here’s what they say about the total marketing budget (excluding salaries):

  • About a quarter (24%) say content marketing takes up one-fourth or more of the total marketing budget.
  • Nearly one in three (29%) indicate that 10% to 24% of the marketing budget goes to content marketing.
  • Just under half (48%) say less than 10% of the marketing budget goes to content marketing.

Content marketing budget outlook for 2024

Next, we asked about their 2024 content marketing budget. Forty-five percent think their content marketing budget will increase compared with 2023, whereas 42% think it will stay the same. Only 6% think it will decrease.

Content Marketing Trends for 2024: How B2B content marketing budgets will change in 2024.

Where will the budget go?

We also asked where respondents plan to increase their spending.

Sixty-nine percent of B2B marketers say they would increase their investment in video, followed by thought leadership content (53%), in-person events (47%), paid advertising (43%), online community building (33%), webinars (33%), audio content (25%), digital events (21%), and hybrid events (11%).

Content Marketing Trends for 2024: Percentage of B2B marketers who think their organization will increase in the following areas in 2024.

The increased investment in video isn’t surprising. The focus on thought leadership content might surprise, but it shouldn’t, says Stephanie Losee , director of executive and ABM content at Autodesk.

“As measurement becomes more sophisticated, companies are finding they’re better able to quantify the return from upper-funnel activities like thought leadership content ,” she says. “At the same time, companies recognize the impact of shifting their status from vendor to true partner with their customers’ businesses.

“Autodesk recently launched its first global, longitudinal State of Design & Make report (registration required), and we’re finding that its insights are of such value to our customers that it’s enabling conversations we’ve never been able to have before. These conversations are worth gold to both sides, and I would imagine other B2B companies are finding the same thing,” Stephanie says.

Top content-related priorities for 2024: Leading with thought leadership

We asked an open-ended question about marketers’ top three content-related priorities for 2024. The responses indicate marketers place an emphasis on thought leadership and becoming a trusted resource.

Other frequently mentioned priorities include:

  • Better understanding of the audience
  • Discovering the best ways to use AI
  • Increasing brand awareness
  • Lead generation
  • Using more video
  • Better use of analytics
  • Conversions
  • Repurposing existing content

Content marketing predictions for 2024: AI is top of mind

In another open-ended question, we asked B2B marketers, “What content marketing trends do you predict for 2024?” You probably guessed the most popular trend: AI.

Here are some of the marketers’ comments about how AI will affect content marketing next year:

  • “We’ll see generative AI everywhere, all the time.”
  • “There will be struggles to determine the best use of generative AI in content marketing.”
  • “AI will likely result in a flood of poor-quality, machine-written content. Winners will use AI for automating the processes that support content creation while continuing to create high-quality human-generated content.”
  • “AI has made creating content so easy that there are and will be too many long articles on similar subjects; most will never be read or viewed. A sea of too many words. I predict short-form content will have to be the driver for eyeballs.”

Other trends include:

  • Greater demand for high-quality content as consumers grow weary of AI-generated content
  • Importance of video content
  • Increasing use of short video and audio content
  • Impact of AI on SEO

Among the related comments:

  • “Event marketing (webinars and video thought leadership) will become more necessary as teams rely on AI-generated written content.”
  • “AI will be an industry sea change and strongly impact the meaning of SEO. Marketers need to be ready to ride the wave or get left behind.”
  • “Excitement around AI-generated content will rise before flattening out when people realize it’s hard to differentiate, validate, verify, attribute, and authenticate. New tools, processes, and roles will emerge to tackle this challenge.”
  • “Long-form reports could start to see a decline. If that is the case, we will need a replacement. Logically, that could be a webinar or video series that digs deeper into the takeaways.”

What does this year’s research suggest B2B content marketers do to move forward?

I asked CMI’s Robert Rose for some insights. He says the steps are clear: Develop standards, guidelines, and playbooks for how to operate – just like every other function in business does.

“Imagine if everyone in your organization had a different idea of how to define ‘revenue’ or ‘profit margin,’” Robert says. “Imagine if each salesperson had their own version of your company’s customer agreements and tried to figure out how to write them for every new deal. The legal team would be apoplectic. You’d start to hear from sales how they were frustrated that they couldn’t figure out how to make the ‘right agreement,’ or how to create agreements ‘consistently,’ or that there was a complete ‘lack of resources’ for creating agreements.”

Just remember: Standards can change along with your team, audiences, and business priorities. “Setting standards doesn’t mean casting policies and templates in stone,” Robert says. “Standards only exist so that we can always question the standard and make sure that there’s improvement available to use in setting new standards.”

He offers these five steps to take to solidify your content marketing strategy and execution:

  • Direct. Create an initiative that will define the scope of the most important standards for your content marketing. Prioritize the areas that hurt the most. Work with leadership to decide where to start. Maybe it’s persona development. Maybe you need a new standardized content process. Maybe you need a solid taxonomy. Build the list and make it a real initiative.
  • Define . Create a common understanding of all the things associated with the standards. Don’t assume that everybody knows. They don’t. What is a white paper? What is an e-book? What is a campaign vs. an initiative? What is a blog post vs. an article? Getting to a common language is one of the most powerful things you can do to coordinate better.
  • Develop . You need both policies and playbooks. Policies are the formal documentation of your definitions and standards. Playbooks are how you communicate combinations of policies so that different people can not just understand them but are ready, willing, and able to follow them.
  • Distribute . If no one follows the standards, they’re not standards. So, you need to develop a plan for how your new playbooks fit into the larger, cross-functional approach to the content strategy. You need to deepen the integration into each department – even if that is just four other people in your company.
  • Distill . Evolve your standards. Make them living documents. Deploy technology to enforce and scale the standards. Test. If a standard isn’t working, change it. Sometimes, more organic processes are OK. Sometimes, it’s OK to acknowledge two definitions for something. The key is acknowledging a change to an existing standard so you know whether it improves things.

For their 14 th annual content marketing survey, CMI and MarketingProfs surveyed 1,080 recipients around the globe – representing a range of industries, functional areas, and company sizes — in July 2023. The online survey was emailed to a sample of marketers using lists from CMI and MarketingProfs.

This article presents the findings from the 894 respondents, mostly from North America, who indicated their organization is primarily B2B and that they are either content marketers or work in marketing, communications, or other roles involving content.

Content Marketing Trends for 2024: B2B  industry classification, and size of B2B company by employees.

Thanks to the survey participants, who made this research possible, and to everyone who helps disseminate these findings throughout the content marketing industry.

Cover image by Joseph Kalinowski/Content Marketing Institute

About Content Marketing Institute

short case study on market segmentation

Content Marketing Institute (CMI) exists to do one thing: advance the practice of content marketing through online education and in-person and digital events. We create and curate content experiences that teach marketers and creators from enterprise brands, small businesses, and agencies how to attract and retain customers through compelling, multichannel storytelling. Global brands turn to CMI for strategic consultation, training, and research. Organizations from around the world send teams to Content Marketing World, the largest content marketing-focused event, the Marketing Analytics & Data Science (MADS) conference, and CMI virtual events, including ContentTECH Summit. Our community of 215,000+ content marketers shares camaraderie and conversation. CMI is organized by Informa Connect. To learn more, visit www.contentmarketinginstitute.com .

About MarketingProfs

Marketingprofs is your quickest path to b2b marketing mastery.

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More than 600,000 marketing professionals worldwide rely on MarketingProfs for B2B Marketing training and education backed by data science, psychology, and real-world experience. Access free B2B marketing publications, virtual conferences, podcasts, daily newsletters (and more), and check out the MarketingProfs B2B Forum–the flagship in-person event for B2B Marketing training and education at MarketingProfs.com.

About Brightspot

Brightspot , the content management system to boost your business.

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Why Brightspot? Align your technology approach and content strategy with Brightspot, the leading Content Management System for delivering exceptional digital experiences. Brightspot helps global organizations meet the business needs of today and scale to capitalize on the opportunities of tomorrow. Our Enterprise CMS and world-class team solves your unique business challenges at scale. Fast, flexible, and fully customizable, Brightspot perfectly harmonizes your technology approach with your content strategy and grows with you as your business evolves. Our customer-obsessed teams walk with you every step of the way with an unwavering commitment to your long-term success. To learn more, visit www.brightspot.com .

Stephanie Stahl

Stephanie Stahl

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Basic and themed landing page templates are available once you make a draft landing page.

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If you want to customize a template on Mailchimp to support your digital marketing strategies, you can access it from the Templates page under the Campaigns tab. You can also edit your email template directly within our email builder. From there, you can edit the template however you want by adding text, color, images, and more.

By using a custom or Mailchimp template, you can save valuable time and resources that could be allocated elsewhere. Plus, there’s a template for every situation—such as events, promotions, order notifications, cart reminders, and more—within our extensive selection of pre-built templates.

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How do I import a Mailchimp template?

Importing your own templates grants you more control over the design of your email. To import a custom email template, you can paste in code, import HTML, or upload ZIP files. Each of these methods is accessible via our template builder.

Make sure ZIP files are less than 1 MB and contain 1 HTML file to ensure a smooth upload. It’s also a good idea to only use letters, numbers, and hyphens in the file name.

Keep in mind that you can always choose from our pre-built templates to save time on marketing activities. All email and personal landing page templates are highly customizable, so you can include your brand’s logo and colors to keep the style consistent across all marketing materials.

How do I create a newsletter template in Mailchimp?

Use the steps below to create templates using our email newsletter service:

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Customize the template to your liking using your brand’s logo and colors. You can also drag and drop content blocks and add images.

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How do I design an email template?

With the right tools, you can design email campaign templates in a few minutes or more. To get started, it’s important to know the goal of your template. This is because templates used to promote new products will look much different than monthly newsletter templates. Knowing your marketing objective can help you choose the best templates for email marketing to get your message across.

With your marketing goals in mind, you can select a template and customize it however you like by changing the layout, using bold fonts, adding color, and incorporating images or videos.

How do I create an email template in Mailchimp?

Create templates for email marketing in Mailchimp using our new email builder by following the steps below:

  • Find the Campaigns tab and select Email templates.
  • Find the template you want to use and click Select.
  • Enter the name of your template when prompted and click Save.
  • Edit the template using your own content.
  • Preview your template to ensure it’s readable on desktop and mobile.
  • Save Template and Exit when you’re done.

If you’re using our classic email builder, use the following steps:

  • Follow steps 1-2 from the previous section.
  • Select the template you want to use from the template categories provided. You can also code your own.
  • Edit the contents of the template with your own text and images.
  • Click Save and Exit when complete.
  • Name your email marketing template when prompted.
  • Click Save.

Are Mailchimp templates responsive?

Your contacts can open emails anywhere–on their tablet, phone, or desktop. Ensuring your template is responsive is key for a good experience with your brand. All templates for email marketing on Mailchimp are responsive, allowing you to send emails that look amazing, regardless of the device.

You can also preview and test your template to verify it looks great on web browsers and mobile devices before sending it out.

How do I send an email template in Mailchimp?

You can send templates you create on Mailchimp by heading over the Content section. From there, click Design Email and select the Templates tab. You can also create campaigns from the Templates page.

What should be included in an email marketing template?

An email marketing template provides brand-aligned visual appeal that lets you focus on communicating with your audience. A great template offers all the elements most common to great marketing emails:

Headline: An engaging phrase or sentence that captures audience attention and hints at the main topic of the email.

Hero image: A photo or illustration that pairs with your headline to create a compelling first impression.

Subheading: A short sentence or two that supports your headline with details, shows personality, and supports curiosity.

Body: The main content of the email, featuring clear and concise copy, images, and subheadings between sections as necessary.

Call-to-action (CTA): A link or button that directs the reader to do something, such as learning more about your product.

Typography: Support for both custom and web-friendly fonts that fit your brand and make your copy shine.

Responsive design: Mobile-friendly HTML that looks just as good on phones and tablets as it does desktops and laptops.

Personalization: Mail merge and campaign integration features that let you call your readers by their name and reach them at the right times.

Mailchimp's email templates feature all the above and more, along with analytics, tests, and reports that help you make the most of every message.

Are email marketing templates free?

It depends on where you look. With Mailchimp, you can access a collection of pre-built templates, including free options, built for a wide variety of purposes and styles. These templates can be modified and personalized to align with your brand and campaign goals.

Mailchimp's Free plan gives you access to a variety of basic, featured, and themed email templates, while paid plans include access to our entire template library. Additionally, if you're on our Standard or Premium plan, you can purchase custom, expert-designed templates from the Mailchimp Marketplace.

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  • #1 email marketing platform: Based on December 2023 publicly available data on competitors' number of customers.
  • 8 million+ data-backed recommendations: Based on 2022 data for the following products: Product recommendations, Send Time Optimization, A/B testing, CLV segmentation, Likelihood to Purchase Segmentation, and PBJ.
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COMMENTS

  1. Market Segmentation Case Studies

    Case Studies: Successful Examples of Market Segmentation To better understand how market segmentation can positively impact your business, we've compiled a list of 4 case studies that showcase market segmentation. You can check out how segmentation worked for these leading companies. Case Study 1: Coca-Cola's "Share a Coke" Campaign

  2. Market Segmentation

    This gender and psychographic segmentation opened a whole new market for Nike, leading to a 24% revenue growth (Tellis, 2003). Nike also found that women spent 40% more than men on sports apparels ...

  3. Market segmentation case studies: Learning from successful segmentation

    1. market segmentation is a crucial aspect of any successful marketing strategy. By dividing a target market into smaller, more manageable segments, businesses can better understand and cater to the unique needs and preferences of different customer groups. This approach allows companies to create tailored marketing campaigns, products, and ...

  4. Market Segmentation: Definition, Types, Benefits, & Best Practices

    Market segmentation creates subsets of a market based on demographics, needs, priorities, common interests, and other psychographic or behavioral criteria used to better understand the target audience. By understanding your market segments, you can leverage this targeting in product, sales, and marketing strategies.

  5. PDF Data Analytics: A Marketing Segmentation Case Study

    segmentation solution but from the programs leveraging this solution. • Segmentation should be "customer-in" versus business- or product-out. • There is both a science and an "art" to designing and evaluating a successful segmentation. • Segmentation is the foundation for distinctive and sustainable competitive advantage.

  6. Market Segmentation: One Method, Four Examples

    Research & analytics experts in product dev research, message prioritization, pricing research, segmentation, conjoint, brand equity, communities. Effective market segmentation requires an understanding of the market and the skilled art of finding the appropriate segments. TRC gives four examples of this method's application with results.

  7. Market Segmentation: One Method, Four Examples

    Segments Identified: The study identified five insurance market segments, each making up 17% to 22% of the market. "Non-Traditionals" were most interested in using the Internet and/or buying insurance at work. "Direct Buyers" were more interested than others were in buying via direct mail or telephone.

  8. Segmentation Marketing: A Case Study on Performance Solutions Group, LLC

    The segmentation process consists of 5 steps: strategy, choosing segmentation methods, evaluating segment attractiveness, selecting a target market, and identifying and developing a. position strategy. This process leads to the development of a marketing mix for the target market.

  9. Segmentation, Targeting, and Product Positioning

    This topic focuses on the basics of market segmentation and both cases require students to use data to identify market segments. The main case, The Fashion Channel: Market Segmentation, explores a cable TV network that methodically determines how to segment its potential audience.Students are asked to complete a quantitative assignment: calculating the bottom-line impact of various ...

  10. PDF CASE STUDY

    The research was carried out in 4 stages: Establishing the Segmentation: We carried out over 4000 quantitative online interviews with a cross-section of SOHO and SMBs. personas were derived from online interview data by employing regression and cluster analysis techniques. workshop presentation was delivered in an interactive fashion and ...

  11. MetLife: A Case Study in Customer Segmentation

    In 2015, MetLife began a year-long brand discovery process that centered around using data and machine learning to develop a more refined view of their customer segments and enable a more nuanced go to market strategy. By better understanding their customers' needs, attitudes, and behaviors, MetLife hoped to gain a competitive advantage in targeting and better serving an increasingly demanding ...

  12. Market segmentation

    New Criteria for Market Segmentation. The director of marketing in a large company is confronted by some of the most difficult problems in the history of U.S. industry. To assist him, the ...

  13. Using segmentation to improve performance

    The case study describes the use of market segmentation to assist in the development of a service product. Customer requirements were captured via qualitative research and the segmentation was completed through the use of quantitative research. ... Market Segmentation: How to do it and how to profit from it, Revised 4th Edition. Related ...

  14. Market Segmentation, Targeting and Positioning Case Study

    Segmentation is the element of STP framework that bears the highest strategic value for organizations since it serves as a basis for targeting and positioning. An example of a company that successfully utilizes demographic segmentation is Victoria's Secret (Kotler & Keller 2012). The brand focuses on female consumers, and its primary aim was ...

  15. PDF Market segmentation

    Numerous published and unpublished case studies attest to the value of segmentation. For example, Bell et al. (1998) show how segmentation of store choice decisions of supermarket shoppers reveals fundamental differences in store attractive-ness, conditional on a shoppers preferred shopping style. The model illustrates how one store format

  16. PDF Implementing market segmentation into strategic decision-making: case

    The empirical section begins with describing the research data and background of the study before proceeding into the actual analysis. The proprietary data provided by the case company is analysed to form a picture of the current state and challenges of the application of market segmentation in the case company.

  17. Customer segmentation in retail: 6 powerful client case studies

    Using the Lexer CDP, Brand Collective was able to gain holistic customer data in real-time. The easy-to-use Lexer platform built targeted segments across all marketing channels, including their email, mobile, and search. These yielded an action plan that helped the brand take on new opportunities and avoid the risks of the ever-evolving ...

  18. PDF MARKET SEGMENTATION IN MARKETING EDUCATION: A CASE STUDY

    MARKET SEGMENTATION IN MARKETING EDUCATION: A CASE STUDY. MARKET SEGMENTATION IN MARKETING EDUCATION: A CASE STUDY John B. Lord, Saint Joseph's University John L. Haverty, Saint Joseph's University Abstract This paper demonstrates how product positioning and market segmentation have been employed success­ fully in an educational context.

  19. Case study on market segmentation

    Case study on market segmentation. Under Armour is an American sports apparel company founded in 1996 that focuses on designing clothing to keep athletes dry and comfortable during exercise. The case study analyzes Under Armour's demographic segmentation by discussing how they target different age groups, genders, income levels, and generations ...

  20. Group Assignment 1: Case Study on Market Segmentation, Targeting and

    2 Geographic Segmentation. Geographic segmentation categorises a target audience by geography to allow consumers to be finest served by marketers in a specific region. This method of market segmentation is concentrated on the geographic regions within such as countries, states, towns, etc.

  21. Marketing Case Study 101 (+ Tips, Examples, and a Template)

    Marketing case study 101 (plus tips, examples, and templates) Summary/Overview. Levels. 1. If you're familiar with content lines like, "See how our fancy new app saved Sarah 10 hours a week doing payroll," you've encountered a marketing case study. That's because case studies are one of the most powerful marketing tools, showcasing ...

  22. 10 Marketing Case Study Examples

    Without going into details about the methods, it's another typical third-person case study designed to build trust. 6. Video marketing case study: L'Oréal and YouTube. In this case study, various members of L'Oréal's global marketing team break down exactly how they used YouTube ads to launch a new product.

  23. Marketing Case Studies, Online Marketing Real World Examples

    Case Study: How a Web-based Company Increased Leads 90%—and Sales 23%—via PPC-Visitor Profiling, Landing Page Personalization. by Nettie Hartsock. Segmentation. Continental Warranty used pay-per-click ads to generate leads by providing free quotes for extended-warranty coverage. But lead volume had plateaued.

  24. DAZN Case Study: Successfully Decreasing Churn & Maximizing LTV

    In this case study, you will learn how DAZN overcame the challenge by transforming its event-led tactics into customer-led marketing with Optimove. ... Now, DAZN is creating multiple segmentation layers and micro-segments, identifying the optimal channel for execution, gaining visibility into new and updated behavioral trends, and more ...

  25. B2B Content Marketing Trends 2024 [Research]

    New research into B2B content marketing trends for 2024 reveals specifics of AI implementation, social media use, and budget forecasts, plus content success factors. ... (84%, up from 75% last year), and case studies/customer stories (78%, up from 67% last year). Almost three-quarters (71%) use long articles, 60% produce visual content, and 59% ...

  26. SMS Marketing: Send Customers SMS Messages

    Enable always-on marketing—without the always-on presence. Automate your SMS marketing with Mailchimp's custom triggers and save time with pre-built content templates. Send notifications, promotions, inventory alerts, abandoned cart reminders, and more—all personalized to the user, and all automatically. Explore Customer Journey Builder.

  27. Digital Marketing Templates: Pre-Built Templates for Marketing

    Engage your customers with beautifully-made emails. Create engaging content quickly with inspiration from 130+ industry-specific email templates based on your intent. Get started. #1 in email. and marketing automation platform*. 8 million. data-backed recommendations. 500 million. emails sent every single day.