Market segmentation: how does it work with online social networks?
Paul Fennemore, Managing Director, Viapoint and Researcher and Lecturer, Henley Business School
http://www.socialmedia-forum.com/europe/
Digital Transformation in the PLM domain - distrib.pdf
Viapoint at SMWF
1.
2. Market segmentation:
how does it work with online
social networks?
stand 28
•No hype, no unfounded opinion #viapointsmwf
•Based on objective research
paul.fennemore@viapoint.co.uk
@paulfennemore
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M: 0777 5823386
3. 1. Do traditional market segmentation practices cross over
?
2. Are there new market segments emerging that we need to tap into
3. What’s working and what’s not working
4.
5. The past was about one to many and shouting the loudest
6.
7.
8. Marketing Practices Need Changing?
× Click thru banner ads decreasing – 30% p.a. (av: 0.05%)
× Radio listeners down – 14%
× TV ad spending down – 14%
× US print advertising down – 30%
× Online engagement down - 19% H1 2011 UK
10. The Variation of Segmentation Adoption
Expertise & Resources
Demographics.
Psychographics
Demographics. Syncrographics
Psychographics Webographics
Personas
Demographics/
Firmographics
#customers + #product variations = #segments & sophistication
Trends:
• Viewed as increasingly important
• Using ‘trial and test’ strategy
•The view that basic and static segments are becoming less valuable
16. Consumer
Power
“They choose how
they want to be Find where
treated” existing segments
Media Type congregate
Owned, Bought, e.g. Surfers, Bands,
Earned Mums, Health, IT
Earned
Engagement
Social Media
Psychographics
/Socialgraphics Segmentation Segmentation
Strategies Pull
Attitude, Opinions,
Interest, Actions, Creating own
Passion Points, community of
Motivation, common interest
‘Likes’
User Participation
RFM, Curators,
Producers, Social Network
Commentators, Sharers, Platforms
Watchers.
Advocates/detractors Each is a different
Facebook Fans, LinkedIn
segment variable.
Groups
Google+ Circles
17. Conclusions in Summary
1. Traditional segments do cross over
2. New segments are emerging
3. One to one engagement on-mass is not
practical
4. Consumer empowerment
5. CRM and SocialCRM integration
6. Success is determined by social commerce
philosophy and strategy
18. Recommendations
General Segmentation Strategies
•Integrate segmentation, insight and social media operations and strategies
•Ensure social team is trained on segmentation practices
CRM Data Collection and SocialCRM
•Use KPI’s to decide what data to harvest – but not standalone KPI’s
•Use for segmentation - Socialgraphics, AIO’s, influencers and detractors
•Avoid silos of data – merge data sets
•Acquire consumer social network ID’s and correlate
Social Media Segmentation
•Review segmentation strategy in light of social networks
•Indentify existing and new segments in online social networks
•Use segmentation pull approach
•Apply engagement continuum to decide on engagement points
•Use to engage with ‘Long Tail’ segments
•Integrate with new social marketing practices e.g. SIM, community
and conversation marketing
19. strategy managed
services
training & employee
workshops collaboration
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