> Why do so many segmentation projects fail to deliver the goods?

3 11 2009

segmentation

For quite a few months now I’ve been working with the team at Cancer Research UK to help develop a new segmentation for their frankly massive supporter database. After countless days spent working through transactional analyses, quantitative and qualitative research findings, and segment profiles we’re now pretty much reaching the point where the segmentation is due to launch. So, it was perfect timing for one of my old colleagues there to email me a link to a very interesting blog post by Brad Bortner of Forrester Research – explaining “Why good segmentations fail”. Thanks Bob!

Bortner explains that recent Forrester research reveals most segmentations never fully deliver their planned business results – not because they haven’t been well developed, but because effective plans are not put in place to ensure that the segmentation is properly adopted and used across all parts of the organisation.

He then provides some very sound advice on how to avoid this happening, including

  • Ensuring cross-functional buy-in from the very start – so you don’t end-up with a wonderful segmentation that no-one is interested in using
  • Providing clear guidance as to which segments should be prioritised for development – to prevent diffusion of effort as teams try to target all segments for fear of missing an opportunity
  • Supporting development of an integrated approach to the priority segments – such that all teams work together to get the most from the segmentation
  • Hosting a one- to two-day Segmentation Adoption Session with all key stakeholders at which as a team you bring the segments to life; confirm priority segments; define optimal segment products, channels, and messaging; and agree how to measure successful implementation going forward.

Undoubtedly well worth a read if you are considering reviewing your supporter or customer segmentation anytime soon.

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