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© 2015 Wendy W. Roan, All Rights Reserved
Are Demographics Dead? Segmentation Trends for today
August 18, 2015
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© 2015 Wendy W. Roan, All Rights Reserved 3
ROAN GROUP | Washington, DC
© 2015 Wendy W. Roan, All Rights Reserved
Population Growth
4
0
30,000
60,000
90,000
120,000
1960 1970 1980 1990 2000 2010 2014
Virginia
Albemarle County
US
US Census
© 2015 Wendy W. Roan, All Rights Reserved
Charlottesville
• Top 5 cities for retirees
• America’s 5 New Foodie Cities
• Most exciting place in Virginia
• America’s favorite mountain town (#9)
• Best college town in U.S.
• America's Healthiest Small Cities (#6)
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City of Charlottesville Albemarle County, VA
© 2015 Wendy W. Roan, All Rights Reserved 6
We are in a silver bullet-driven field.
© 2015 Wendy W. Roan, All Rights Reserved
“The best Chief Marketing Officers have both left brain and right brain proficiency. They must have both the analytical
ability needed to focus on return for their spend, but also the creativity needed to position their brands in ways that are
truly distinctive. The first outweighs the second.” John Quelch, WPP Group
Charles Edward Wilson Professor of Business Administration, Harvard Business School
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What is needed:
...Analytical ability needed to focus on return for their
spend
...Creativity needed to position their brands in ways
that are truly distinctive.
...Analytical ability needed to focus on return for their
spend
...Creativity needed to position their brands in ways
that are truly distinctive.
© 2015 Wendy W. Roan, All Rights Reserved 11
Are Demographics Dead?
© 2015 Wendy W. Roan, All Rights Reserved
Demographics dead? 2 Camps
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Demographics OnlyGeo-Demographics AND Lifestyle
comScore Adweek, Trendwatching
Nielsen TV and radio ratings Nielsen PRIZM
Experian Experian Mosiac
© 2015 Wendy W. Roan, All Rights Reserved
“Media behavior in today's fragmented landscape is best evaluated by looking at the
‘life stages’ that people experience as opposed to their demographic profiles.”
Are Demographics Dead? AdWeek, by Steve McClellan
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© 2015 Wendy W. Roan, All Rights Reserved 15
© 2015 Wendy W. Roan, All Rights Reserved
Does Analytics feel overwhelming?
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© 2015 Wendy W. Roan, All Rights Reserved
Is this your nightmare?
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© 2015 Wendy W. Roan, All Rights Reserved
What are the most important business goals? Rank them.
• Customer retention & increased loyalty
• Lead generation
• Increase wallet share
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© 2015 Wendy W. Roan, All Rights Reserved 19
Your Marketplace
Your Customers
Your Company
© 2015 Wendy W. Roan, All Rights Reserved
No one-size-fits-all even within industries
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© 2015 Wendy W. Roan, All Rights Reserved
Questions to segment?
• Who are my customers?
• How profitable are my customers?
• What do my best customers look like?
• Who are my least profitable customers?
• Why are my customers leaving?
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© 2015 Wendy W. Roan, All Rights Reserved
Surface segments
‣ Market & consumer analysis
‣ Valued OR differentiated products
‣ Brand strategy
‣ Channel selection
‣ Success evaluation
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B2B or B2C?
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© 2015 Wendy W. Roan, All Rights Reserved
B2B Segments
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B2B Consumers
Industry
Revenue Size or Buying
Behavior
Geography
Product line
Purchase location
© 2015 Wendy W. Roan, All Rights Reserved
Analysis: Buying Behavior
• Revenue Amount: Large
• High Value vs. Low Value
• Frequency
• Multi-year measures
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High value vs. Low value
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Tough choices, even for our most lovable customer friends.
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© 2015 Wendy W. Roan, All Rights Reserved
B2C Segments
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Consumers
Demographic
Customer vs
Prospect
Loyalty Program
Geography
Decision Makers
Product line
Purchase Location
Industry
© 2015 Wendy W. Roan, All Rights Reserved
Geo-Demographic + Lifestyle Market Segmentation
• Nielsen PRIZM
• Experian Mosaic® USA
• Environics Analytics Group(Canada)
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© 2015 Wendy W. Roan, All Rights Reserved
Geo-Demo Segments Lifestage Groups
• Zip+ four location
• Demographics
• Lifestyle
• Where to find more (traditional media)
• Where to advertise
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© 2015 Wendy W. Roan, All Rights Reserved
Lifestyle: Nielsen PRIZM
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Lifestyle: Nielsen PRIZM
© 2015 Wendy W. Roan, All Rights Reserved 33
Lifestyle: Nielsen PRIZM
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Market & Trade Area
Segmenting in Execution
© 2015 Wendy W. Roan, All Rights Reserved
Creative signals segments‣ Communication channel
‣ Photography
‣ Key messages and ad copy
‣ Content
‣ Websites
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© 2015 Wendy W. Roan, All Rights Reserved
B2C Property Management Company Business Goals
• Increase income by:
• Increasing quality and # of (prospective) residents.
• Decreasing resident move-out rate.
• Create a consistent, more modern company and community brands to strengthen brand recognition and appeal to the next generation.
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© 2015 Wendy W. Roan, All Rights Reserved
Marketing Segmentation Strategy
• Lifestyle: long-term rental home, peaceful/quiet, seek community with neighbors
• Demographics: income, age
• Life stage: mother/child, retirees
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© 2015 Wendy W. Roan, All Rights Reserved
Lifestyle & demographic segments
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(Young) families
Young professionals
Long-term Renters
Service & Blue Collar Industries
work smartAll images and content © Copyright 2014, The Roan Group
Lifestyle & demographic segments
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Single Parents
Income range
work smartAll images and content © Copyright 2014, The Roan Group
2nd Target: Seniors (50-65) who want community
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© 2015 Wendy W. Roan, All Rights Reserved
B2B Branded Communications Manufacturing Company Business Goals
• Increase sales and revenue.
• Increase customer numbers.
• Diversify into new industries.
• Clarify, position and strengthen the brand, full range of products, and its case for value.
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© 2015 Wendy W. Roan, All Rights Reserved
Marketing Segmentation Strategy
• Product diversification: photography, website, and channel diversification
• Social media diversification
• Word-of-mouth sales campaign to diverse industries
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© 2015 Wendy W. Roan, All Rights Reserved
Widen Industry Segment to creative projects
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Commercial Real Estate
Property Management
Residential Real Estate
© 2015 Wendy W. Roan, All Rights Reserved
New Industry Segments
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© 2015 Wendy W. Roan, All Rights Reserved
New Clients with creative products
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© 2015 Wendy W. Roan, All Rights Reserved
Your target audience?
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© 2015 Wendy W. Roan, All Rights Reserved
Geographic Segment
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© 2015 Wendy W. Roan, All Rights Reserved
Your target audience?
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© 2015 Wendy W. Roan, All Rights Reserved
Business size segments: Albemarle County’s largest
• $2.8B
• $349M
• $252M
• $4.6M
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© 2015 Wendy W. Roan, All Rights Reserved
Growth Opportunities: Albemarle County Economic Development focus
• Biotech & Medical Devices: 20% of Virginia’s biotech industry
• Business & Financial Services: State Farm, Stellar One Corporation, and Coventry Health Care Insurance
• IT and Defense: Northrup Grumman
• Agribusiness and Food Processing
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© 2015 Wendy W. Roan, All Rights Reserved
Buying behavior segmentation
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FY09 FY10 FY11 FY12 FY13
Lost -$1,824,064 -$5,431,968 -$2,632,784 -$18,437,026
Retained $595,377 $1,059,004 $2,243,962 $3,827,261
New $2,419,441 5,895,595 3,639,696 18,771,081 9,277,599
Re-Acquired $268,285 $308,545 $384,085
Active Accounts $2,419,441 $6,490,972 $4,876,746 $22,264,287 $13,873,657
Running Churn -$1,824,064 -$7,256,032 -$9,888,816 -$28,325,842
© 2015 Wendy W. Roan, All Rights Reserved
Segment marketing by engagement type
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Communications Channel
Email Behavior
Web Behavior
Mobile Behavior
Inbound
Sales Team
© 2015 Wendy W. Roan, All Rights Reserved
Increased Email Response‣ Segment email campaign
‣ After cart abandonment through multiple channels
‣ Retarget
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eMarketer, Email Marketing Benchmarks 2015: Are Performance Metrics Revealing Signs of Consumer Fatigue
© 2015 Wendy W. Roan, All Rights Reserved
Segmented Email Campaigns
• Opens: 15% higher than non-segmented campaigns.
• Unique Opens: 11% higher than non-segmented campaigns.
• Clicks: 55% higher than non-segmented campaigns.
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May 2015 MailChimp Study
© 2015 Wendy W. Roan, All Rights Reserved
Spend more on mobile?
58Beloved Brands
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Mobile ad: Simple & Short
‣ Drive awareness
‣ Quick purchases
‣ Reinforce other channels
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© 2015 Wendy W. Roan, All Rights Reserved
‣ 56% social media users
‣ Make 85% of HH buying decisions.
‣ Hold 51% of jobs
‣ Purchase 58% online retail
‣ Senior women control $19T & 3/4 of US wealth.
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48%52%
Female Male
Pew Internet & American Life Project, project of Pew Charitable Trusts She-Economy.com, Mass Mutual Financial Group US Census
Female segment: 52% of Albemarle County is female
© 2015 Wendy W. Roan, All Rights Reserved
Design for women
‣ Design whole experience; ads, packaging, retail environment, and service.
‣ Emphasize benefits over features.
‣ No hyper-feminine stereotype.
‣ Focus on life stage, 25 or 65? Mom or CEO?
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© 2015 Wendy W. Roan, All Rights Reserved
African Americans and Hispanics embrace mobile
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Pew Research Center
Pe
rcen
t
0
14
28
42
56
70
Texts per day
31%
49%
70%
Black Hispanic Whites
© 2015 Wendy W. Roan, All Rights Reserved
Lifestyle: Moms
• Motherhood is the #1 trigger for social media usage.
• Pregnancy and birth triggered 94% of moms to seek out information and share opinions with others online.
• The 80/20 rule never fails. 18% of social moms wield 78% of the overall influence.
• Mom bloggers are effective but just the tip of the iceberg.
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© 2015 Wendy W. Roan, All Rights Reserved
Don’t forget the CEO channel.
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© 2015 Wendy W. Roan, All Rights Reserved
Repeat communications increase believability
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Informed publics age 25-64
2%3%
6%
8%
26%
33%
22%
Twice (2)Three (3)Four to Five (4-5)Six - Nine (6-9)Ten or moreOnce (1)Don’t know
Edelman Trust Barometer
Summary
© 2015 Wendy W. Roan, All Rights Reserved
Segment Choice Summary
• Customer/Prospect
• Demographic
• Geography
• Industry
• Purchase location
• Products
• Revenue/Profitability
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• B2B or B2C
• Buying behavior
• Consumer needs
• Engagement channel
• Growth industries
• Lifestyle
• Pain point
• Purchaser
Internal Customer
Where do I get more consumer knowledge?
© 2015 Wendy W. Roan, All Rights Reserved 69
CreativityInsightsResearch & Observations
© 2015 Wendy W. Roan, All Rights Reserved
Compile your data
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+
Web
Email Response+
In Store+
Purchased Data
© 2015 Wendy W. Roan, All Rights Reserved
Internal Data Sources
• Strategic Plan inputs and identified needs
• Customers: Qualitative & Quantitative Research
• Acquisition and Churn Analysis: current vs. updated segmentation model
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© 2015 Wendy W. Roan, All Rights Reserved
External Data Sources
• Non-competitive industry collaborative (outside your market)
• Signal brands
• Market (competitive and complementary) research
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© 2015 Wendy W. Roan, All Rights Reserved
Connect with me Wendy Roan
[email protected] 202.549.7954
LinkedIn: http://linkd.in/olPirZ
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