Segmentation in the UK Workshop

Vishalakshi Roy, Director, Earthen Lamp

Running order

• Introduction

• Types of segmentation

• A few models commonly used in the UK

• Making a start with segmentation

• Sharing experiences

What is segmentation?

An established market research technique that breaks down a

given market/group of people into distinct consumer ‘types’

• Identifies shared wants and needs

• Enables more precise targeting and tailored marketing and

communications

• Used by many arts organisations (e.g. Royal Shakespeare

Company) and increasingly by public bodies (e.g. National

Trust)

What are the main approaches to segmentation?

• Population based models

• Behaviour based models

• Product or service based models

• Attitude based

A few common models used in the UK

ACORN What:

Geo-demographic segmentation of the population which segments small neighbourhoods, postcodes, or consumer households into 5 categories, 17 groups and 56 types

Uses:

Understand customers’ lifestyle and attitudes

Identify the needs of neighbourhoods and public service needs

Identify profitable prospects, evaluate local markets

Can be used to drive effective customer communication strategies

Available as:

Mainly as a dataset of prospects, allows profiling of data and mapping

Case Study: Think tank Birmingham

Aim:

• To identity prospects and design targeted marketing

How:

• Postcodes of attenders profiled using ACORN categories

• Geographic distribution analysed and areas of growth identified

Mosaic UK What:

Comprehensive demographic data sources and a sophisticated approach to cluster analysis, supported by analysis of market research. 155 person types aggregate into 67 household types and 15 groups, to create a 3 tier classification that can be used at the individual, household or postcode level

Uses:

Helps to target, acquire, manage and develop profitable relationships. Used to analyse consumer behaviour, understand potential risk and identify investment opportunities

Available as:

Prospect lists, used for mapping and profiling

Case Study: BCMG Aim:

• To identity prospective funders

How:

• Postcodes of current funders profiled using Mosaic UK

• Segments compared to the UK average and typical funder identified

• Prospect lists generated using the intelligence gathered

Arts Audiences: Insight What:

Starting with arts attendance and participation the segmentation uses data from Taking Part and Target Group Index surveys. Available as 13 arts consumer segments

Uses:

Particularly suited to strategic positioning – putting the audiences in context and developing initiatives designed to increase engagement. Includes detailed information on the qualities and needs of different audience groups, including current non-engagers and audiences of non-ticketed events

Available as:

Local level segment breakdown, segment maps, profiling compared to averages

Case Study: Ledbury Poetry Festival Aim:

• To understand the audiences that make up high frequency and low frequency bookers and devise communication strategies

How:

• Postcodes of high and low frequency bookers profiled using AAI

• Segments compared to the UK average and typical high and low frequency booker identified

• The intelligence will feed into communication strategies in the future

National Trust: Days Out Segments

Features:

•Based on motivation and mind set of visitors

•Derived from large scale survey with visitors

Benefits: • Understand priorities in terms of number of visitors impacted • Focus the offer • Common approach across central, regional, and property teams • Co-ordination across, property heads of department

Royal Shakespeare Company

Features:

•Behavioural model refreshed twice a year

•Derived from box-office data

•Movement between segments tracked

Benefits: • Targeted communications strategy • Co-ordination across departments •Allows for the design of “win back” strategies

Golden Geese

Newbies

E Bookers

Regulars

Family Lapsers

Where do you start with segmentation?

• Surveys

• Mailing lists

• Booking data (box office, other ticketing info)

• Profiling and mapping of visitors/attenders

• Observation data

• Population data

• Programme of activities

Over to you…

Current use

How important is segmentation in your work?

1 = we don’t do it but we are thinking about it more

2 = we have made a start with it

3 = somewhat, we use some segmentation for our marketing and/or programming

4 = we use it most of the time

5 = we can’t function without it

Approach

Determine the top three criteria you use/would use for segmentation in your organisation

e.g: Geography, Demographic information, Lifestyle,

Products, Past/ future behaviour, Attitudes, Any other attributes

Relevance

How can you use some of the UK information?

Which of these models are most relevant to your work?

Sharing experiences and questions

Concluding thoughts

• Different models give different information.

• Segmentation is a mean and not an end.

• Can help make evidence based decisions.

• Segmentation doesn’t have to be expensive.

• Every segmentation model needs to evolve – should not be static.

• Learn from others’ experiences – try before you buy!

Thank you

Vishalakshi Roy Earthen Lamp

+44 (0) 7742 050228

v.roy@earthenlamp.com www.earthenlamp.com

@royvisha

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