Re: Market Segmentation Analysis Applied To The Online World

From: Hamish Stewart <hamish.stewart_at_wanadoo.fr>
Date: Thu 9 Dec 99 10:52:42 +0100

BRYCE ISHAM WROTE:
> I have recently had a couple of off-list email
> discussions with list members about how the
> "traditional" method of market segmentation can be
> applied to online marketing and advertising. I would
> like to outline the concept of market segmentation,
> give a few examples of applications in the online
> world, and then ask for everyone's thoughts on this
> issue.


Bryce - firstly just some general comment,

Thanks for opening such an interesting discussion -
before becoming involved in the online world I worked
in DM for some years and spent a lot of time in list
selection and segmentation. What you indicate
regarding segmenting customers online is valid, though
I am not clear as to what criteria you would suggest
for online customers - clearly the most important
element is whether a visitor is a surfer or a customer
(ie someone who returns), only then does segmentation
INHO have any validity, as you should then be sending
different messages to these two groups. At the moment
a lot of the information that is gathered from online
forms to use site features, is I think rather limited
- and tends to fall into the category of selecting
from several broad subject areas, you make selections
that don't entirely reflect your interest, and so any
judgement based on the response could lack
effectiveness. E-tour is doing something rather
interesting with their site, to establish what you are
visiting, and their rating buttons are obviously there
to establish if you find the site presented
interesting or not. This model that E-tour is using is
an effective way to establish audience habits I think,
though the software is a bit buggy.

Your discussion points;

Your number 4 example of marketing to your offline
audience I think is of great importance, and all to
often forgotten. I have some theories on why I believe
it is important, and useful channels to market to these
people:

Firstly if you are targetting for example people with a
particular interest, then the magazines serving those
interests often a good potential audience, because
people are serious about the subject by purchasing a
magazine, so they want information and are prepared to
pay for it. These are ultimately the people you want,
and more importantly you can draw on substantial
amounts of information about magazine audiences from
media buyers. Many people visiting websites are just
surfing, perhaps comparing offers, and of course there
are differences between people who have been online
for years and those who have just started. Many people
are also seeking something for free - and I believe
that this culture is strong on internet, and you need
to seperate these people out from the others.

Another point involves market research - you can do the
quantative using online forms, but I think you need
qualitative research as well - through focus groups
perhaps.

Use of segmentation;

My experience of a lot of "personalised" messages is
that they are not well segmented - from the ones that
I have received. I recognise them for the auto
responses that they really are - everyone is sending
these "friendly" messages but I don't find them very
targetted at all.

You also asked about people using segmentation. I sell
online presence to business customers and do use some
segmentation analysis - though the company I work for
does not. I segment based on business sector, its
relevance to our market and a few other criteria. In
pure prospection I would probably be increasing the
return rate by up to 2%, not much but prospection can
be an area of small returns (especially in a
competitive market). Unfortunately I cannot sell this
idea higher up as they are still convinced of the mass
approach.


Cheers

Hamish





Received on Thu Dec 09 1999 - 03:52:42 CST