Segmentation alone is no longer enough!
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- Chester Summers
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1 Segmentation alone is no longer enough! Simon Metcalfe & James Long
2 The Background Wendell Smith first described segmentation as an alternative method of engaging with customers in an imperfectly competitive market back in The technology and methodology for predictive analytics has been available since the mid 1990 s Reference: Journal of Marketing Management, Volume 25, Issue 3 & 4 April 2009, Pages
3 The facts Propensity driven communications are 5 times more likely to solicit a response than segmentation only base comms. Detailed customer analytics and propensity models are most effectively used with existing customers where transactional history data is available. Profiling and segmentations do still have a place but are best used when you are communicating with new donors i.e. acquisition.
4 The Barriers Perceived cost. Perceived complexity (the S word ). Understanding of the term Predictive Analytics. Perceived lack of data...??
5 Project Objectives To help a cancer charity get the right message to the right person at the right time using the right channel. Help develop and deliver a segmented targeted comms strategy Use the complete data triangle Behavioural (transactional), lifestyle and attitudinal data
6 What do we mean by attitude? Usually considered a broad catch-all term to describe people s beliefs, understands and perceptions Usually considered soft information Often considered with some suspicion It s alright for focus groups but what part does it have in analytics? But how will we actually use it? But how will we measure change?
7 Incorporating attitudinal data But people are right to feel nervous! Still huge debate on the role attitude plays within the decision making process Are we in a high involvement or low involvement processing sector? THINK FEEL DO FEEL DO THINK Typically, qualitative research (especially when done badly) massively overstates the importance of attitudes and understates reaction to immediate emotions and norm influences.
8 Attitudes towards what? Objective first then define area of scoping What are you actually trying to inform? Be very specific. Is this about understanding of brand purpose and actions? Is this about motivations towards the charity? Is this about the moral and ethical compass of the audience? Is this about commitment towards the charity?
9 You aren t the first to ask... Whatever the scoping area, find an existing attitudinal framework Usually developed within academia across decades They ve already identified and proven the most powerful set of questions Using a framework ensures a greater degree of validation Enables to gauge / index your base against others But takes a lot of homework to choose the right one
10 Two types of Attitudinal Framework 1. Relationship Decision making process Norm activation model Loyalty, commitment & satisfaction Donor voice TNS Conversion But you can do your own by reading the source material
11 PROSPECTORS... and 2. Values and motivations, e.g. Psychometrics turning soft into hard data SETTLERS Royal Marsden % Pioneer % Transitionals % Concerned Ethicals % Flexible Individualists % Transcenders % Prospector % Tomorrow People % Now People 40% % Happy Followers % Golden Dreamers 91% PIONEERS % Settler % Certainty First % Brave New World % Smooth Sailing % Roots % British Values Survey % Pioneer 5.9% Transitionals 8.7% Concerned Ethicals 9.8% Flexible Individualists 13.8% Transcenders 20% 30.3% Prospector 5.6% Tomorrow People 10.3% Now People 5.1% Happy Followers 9.3% Golden Dreamers 4% 5% 31.6% Settler 9.1% Certainty First 8.7% Brave New World 5.8% Smooth Sailing 8.0% Roots Cultural Dynamics Strategy & Marketing Ltd., All rights reserved. No part of this document may be copied, published or distributed in any medium without prior written consent from Cultural Dynamics Strategy & Marketing Limited. Human rights charity example
12 No 2 continued Values and motivations, e.g. Interpersonal reactivity index Animal Attitude Scale Believe in Animal Mind Pet Companion Scale Attitude to Money Scale But remember scales are far more discriminating between non supporters and supporters than within the base but you still find marked differences within supporter bases
13 Archetypes - A framework for brand perceptions What if we want to understand how supporters perceive us? Difficult to use an academic scale (areas too broad) However an archetype framework enables you to understand a deeper set of perceptions Based on depicting your brand purpose through one of 12 archetypal characters Surprising strong consistency, for instance UNICEF - ruler Oxfam creator War on want warrior MSF brave hero (seeker) Magician Sage Jester Innocent Research Care Orphan Warrior Caregiver Ruler Seeker Creator Lover Destroyer Example of profiling cancer charity supporters
14 Analytical Methodology Survey (inc) Giving history (inc) Third party data (inc) Profile Sector Attitudes Commitment RFV Behaviour Product Holding Consumer Source Tenure Geo-demo Behaviour Media TwoStep modelling Cluster definition By giving segment By attitude Visualise cluster personas Establish Degree of difference Key variables Recruitment Quantify audience universe Help define media planning Develop product development Guide creative messaging Supporter programme Apply to base & quantify Insight into segmentation Develop appropriate communication cycles Relevant & powerful creative messaging
15 Collecting Attitudinal Data Attitudinal data was collected through the use of a detailed (paper based) questionnaire Psychometric values Commitment model Archetypes
16 Results of the modelling Two key clusters were found. Different objectives Support research to find a cure for cancer To help people suffering from it.
17 Model Results Cluster 1 Everyday hero Research & treatment Cluster 2 Warrior archetype Strong scientific focus More practical Cancer treatment charity Lower brand commitment Slightly older Slightly lower gift values Lower share of wallet Relationship more based upon colleagues Cancer research charity Higher brand commitment Younger Gave higher gift values Higher share of wallet
18 Implications for the charity Ensuring balance of messaging within comms programme Targeting conversion / upgrade messaging Understanding need to increase brand commitment Understanding how to populate variables from information gained from supporter touch points
19 What else is trending? Legacy Propensity Modelling Targeted comms to those whose giving history looks most like an existing legacy hand raiser, pledger or legator. Reactivation Propensity Modelling Effective targeting of those lapsed/dormant donors who look most like a donor who has already reactivated (Cash to Cash, Cash to CG, CG to Cash and CG to CG). I would like to say Churn Modelling (prevention rather than cure)... one day maybe!
20 Contact us: +44 (0) Follow us on Linked In Sign up for our Newsletter Thank you
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