10 Key Questions to Drive Growth for Your Brand
Following a customer segmentation template enables business leaders to better understand the different types of customer demand that exist for their category and brand. There are many different types of dimensions that can be used to develop a customer segmentation, such as:
- Demographic data
- psychographic factors
- behavioral factors
Leveraging all three inputs is the best way to inform brand strategy, as it allows for a more robust and well-rounded view of the customer landscape.
Having a comprehensive view of distinct customer groups can then help teams make informed strategic decisions and answer questions, such as:
- Who should be the brand’s core target?
- What are their needs and how do we reach them?
- Who are potential expansion targets?
- Are there any unifying needs between core and expansion targets?
- What is the total addressable market?
- Are there segments of the population that we should not focus resources on?
Below is a customer segmentation template that teams can use to profile customer segments across key dimensions. Filling this out for each active segment will ensure that you can tease out differences and identify growth opportunities efficiently.
Customer Segmentation Template: Profiling Segments
|Segment 1||Segment 2||Segment 3||Segment 4||Segment 5|
|% of Population|
|% of Category Spend or Sales|
(gender, age, marital status, race, occupation, education, etc.)
|Relevant Lifestyle Values & Motivations (e.g., health and wellness aspiration, parenting style, etc.)|
|Category Motivations & Benefits Sought|
(functional, emotional, etc.)
(daypart, consumptionfrequency, users, etc.)
(consider top brands and SKUs)
|Media & Shopping Preference|
(information sources used, online vs. offline, retail stores, etc.)
Customer Segmentation Template: Selecting Core/Expansion Targets
Once you have profiled customer segments, narrowing down your brand’s focus to drive growth is ultimately a strategic decision. Below are 10 key questions to ask when selecting core/expansion target(s):
|Segment Size & Profitability||How big is this segment, and will it allow for brand growth?|
|Category Involvement||How involved is this segment in the category? Are their behaviors consistent with motivations?Are there any key barriers to overcome?|
|Brand Usage & Openness||How open is this segment to my brand, specifically?What is the current usage/purchase behavior? Are there any key barriers to overcome?|
|Strategic Fit/Other Considerations||Does the segment needs/motivations align with the company vision and/or broader growth objectives?|
|Reachable & Targetable||Is this segment reachable and targetable from a media standpoint?What distribution channels are most important for this segment?|
Using a customer segmentation template is a very powerful tool that, when done correctly, can lead to a strong understanding of consumer demand and potential growth opportunities.
To learn more about Customer Segmentations and how we can help visit our resource page, or contact us to start a conversation with Insight to Action experts.