Mustard has delivered segmentations for clients across sectors. These have included both market segmentations and customer segmentations – often using survey data and derived by statistical analysis of needs / motivations, but also using client data and other sources, and sometimes derived by behaviours, attitudes or demographics. Segmentations are ideal for informing retention and acquisition strategies and are founded on the premise that one size doesn’t fit all.

Why use segmentation?

Segmentations are used to help inform customer acquisition and retention strategies, allowing our clients to attract the right types of customers – with the right products, services and communications, delivered at the right time, in the right way.

Seg market

We often recommend market segmentations over customer segmentations (including customers / service users AND prospects). This provides a more realistic view of current market position (volumes and values). It provides an understanding of acquisition potential and is more readily future-proofed.

We believe organisations are more likely to gain a competitive advantage by understanding, targeting and aiming to meet specific and well defined needs – rather than simply targeting audiences based on other variables – be that behavioural, attitudinal, demographic. Delivering an aligned brand experience that meets needs demonstrates to customers (and prospects) that you understand them as individuals and the underlying motivations that drive behaviour and attitudes. Plus, fundamental needs don’t change as quickly.

Seg journey

We have also delivered behavioural and attitudinal segmentations for clients across sectors – although these briefs typically have a more specific focus (e.g. understanding different journeys through retirement – behavioural segmentation, identifying target audiences for a new product – attitudinal segmentation). Other clients may decide against commissioning a bespoke segmentation, but use existing models (e.g. Experian / Mosaic, CACI / Fresco) for which there are other benefits and drawbacks.

Sometimes described as the “art” of statistics, most of our segmentations are based on survey data – larger sample sizes to deliver robustness between segments, and longer surveys to provide a breadth of data with which to profile the segments. Statistical analysis is used to derive the segments based on the factors that statistically pull them apart. Many studies also include an element of qualitative research – to help inform survey design, or to provide extra colour to the segments once derived.

Seg tunnel vision

From our experience, some things to consider in designing segmentation:

  • Ensuring there is buy-in and believability throughout the organisation
  • Tunnel vision: thinking about segments too narrowly. Segments that are derived on needs and motivations should be discussed in those terms – regardless of how they over/under index on demographics.
  • Making it real: it is more effective to provide faces and names to represent segments. It also becomes more real when we can add financial value (and potential value) to each segment based on their current and predicted future behaviour.

How segmentation helped Novus Leisure

Mustard undertook a segmentation study for Novus Leisure – the UK’s largest private bar, club and restaurant operator, with prominent brands and sites across London’s West End and City, as well as the UK-wide Tiger Tiger brand.

Discover how segmentation can make a difference to your business

Our people

Our people are our business. The Mustard team is an eclectic mix of skilled, passionate researchers and strategists. We’re all in the job to make a difference, and love nothing more than seeing our clients win.