market segmentation lifelong learning 2007 presented by greg marsello
TRANSCRIPT
Market SegmentationMarket Segmentation
Lifelong Learning 2007
Presented by Greg Marsello
We Must Segment the MarketWe Must Segment the Market…80/20 Principle…80/20 Principle
Why Segment the Market?Why Segment the Market?
• You serve some, but not all, demographic groups. There is no average participant.
• Roughly 20% of your customers give you 80% of your operating margin.
• To know who the 20% is.• To focus resources on that 20% —
programs, staff, marketing.• To make sure you serve your best
customers very well.
Problems Caused by NOT Identifying Problems Caused by NOT Identifying Primary Market SegmentsPrimary Market Segments
• Ineffective program selection• Wasted promotion dollars• Decrease in repeat rate• Reduced operating margin• Wasted staff time
Market SegmentationMarket Segmentation
• A process by which you distinguish or differentiate your various audiences, build a separate demographic profile, and then deliver different products, possibly with different promotions.
The ideal number of market segments is 7
Chart 1: Organization ParticipantsChart 1: Organization Participants
More Recent Less Recent
High Dollars/Activity
25%Highly active
25%Higher dollar/
activity, but notrecent
Low Dollars/Activity
25%Recent, but not
high dollar/activity
25%Least active,
not recent, nothigh dollar/
activity
Chart 2: Net IncomeChart 2: Net Income
More Recent Less Recent
High80%
from mostactive
25%
Low25% -30%
from leastactive
Chart 3: Chart 3: Organization ResourcesOrganization Resources
Time
25% here.This group isunderserved.
25% here.Okay.
Money
25% here.Okay.
25% here.Wasting timeand resources
here.
Chart 4: Chart 4: Efficiency StrategyEfficiency Strategy
Staff Time
Money
Finding Your SevenFinding Your SevenPrimary Market SegmentsPrimary Market Segments
• Step 1: Get registration software• Step 2: Run out your best 200
participants• Step 3: Survey your best participants• Step 4: Analyze your demographics• Step 5: Get data for all participants• Step 6: Now you know
Ideal Software SystemIdeal Software System
Mailing List Word ProcessingRegistration
Brochures
Financial Statements
Marketing Analysis
Room Location
s
Financial Analysis
Master Data FileCustomer
Demographics History
Finding Your SevenFinding Your SevenPrimary Market SegmentsPrimary Market Segments
• Step 1: Get registration software• Step 2: Run out your best 200
participants• Step 3: Survey your best participants• Step 4: Analyze your demographics• Step 5: Get data for all participants• Step 6: Now you know
Recency
Moneta
ry V
al u
e/A
ctiv
ity
Know Your Participants & Allocate Know Your Participants & Allocate Resources AccordinglyResources Accordingly
Finding Your SevenFinding Your SevenPrimary Market SegmentsPrimary Market Segments
• Step 1: Get registration software• Step 2: Run out your best 200
participants• Step 3: Survey your best participants• Step 4: Analyze your demographics• Step 5: Get data for all participants• Step 6: Now you know
Critical Customer DemographicsCritical Customer Demographics
• Geography*• Age*• Sex• Formal Education
Community Courses/Events
Critical Customer DemographicsCritical Customer Demographics
• Geography• Occupation*• Job Title• Age*
Continuing Professional Education
Critical Customer DemographicsCritical Customer Demographics
• Geography• Age• Sex• Formal Education• Race/Ethnicity
Credit Courses
Finding Your SevenFinding Your SevenPrimary Market SegmentsPrimary Market Segments
• Step 1: Get registration software• Step 2: Run out your best 200
participants• Step 3: Survey your best participants• Step 4: Analyze your demographics• Step 5: Get data for all participants• Step 6: Now you know
Demographic Analysis ExamplesDemographic Analysis Examples
Age Example 1 Example 218-20 20 1021-25 20 7026-30 20 3031-35 20 2036-40 20 4041-45 20 1046-50 20 1051-55 20 556-60 20 561-65 20 0
Example of Analyzing Example of Analyzing Demographic VariablesDemographic Variables
CPE, Seminars, Conferences & Other Work-Related Events
Example 1 Example 2Aerospace (3812-01) 2 16Ambulance Services (4119-02) 4 9Architects and Related (8712) 23 12Attorneys (8111-03) 17 9Bookkeeping Services (8721-02) 15 6Bldg. Mat’l Suppliers (5211-26) 2 8Carpet/Rug Cleaners (7217-04) 5 5Consulting Companies (8742-01) 16 11
Example 1 Example 2Computer Consult. (7379-05) 8 20Convenience Stores (5411-03) 2 9County Gov’ts (many) 1 14Engineers (8711) 14 10Hospitals (8062-02) 7 11Insurance Adjusters (6411-02) 2 12Landscape Contractors (0782-04) 1 9Nail Salons (7931-02) 16 8Printers (2752-02) 4 6State Government (many) 12 16Tractor Dealers (5083-04) 0 9TOTAL 200 200
LERN’s Market SegmentsLERN’s Market Segments
– Associations– Churches– Community Colleges– Free Universities– Co-Op Extension– Museums & Gardens– Hospitals &
Healthcare– Individuals– Private Businesses– Libraries
– Military– Technical Institutions– Parks & Recreation– Public Schools– Universities– Private Colleges– Community Centers– YMCA, YWCA, YHA– Colleges & Schools
within Universities
LERN’s Market SegmentsLERN’s Market Segments
1. Universities2. Community Colleges3. Associations
– Associations were 1% of LERN customers; decision made to grow segment; 20,000 U.S. associations
4. Parks & Recreation
5. Public Schools6. Colleges & Schools within Universities
– Broken out from university growth focus
7. Technical Institutions– Broken out from community colleges to
give priority
Finding Your SevenFinding Your SevenPrimary Market SegmentsPrimary Market Segments
• Step 1: Get registration software• Step 2: Run out your best 200
participants• Step 3: Survey your best participants• Step 4: Analyze your demographics• Step 5: Get data for all participants• Step 6: Now you know
Ways to Collect Demographic DataWays to Collect Demographic Data
• Registration Form• Phone Registration• Mail Survey• Confirmation Card/Letter• First Meeting• Contact
Finding Your SevenFinding Your SevenPrimary Market SegmentsPrimary Market Segments
• Step 1: Get registration software• Step 2: Run out your best 200
participants• Step 3: Survey your best participants• Step 4: Analyze your demographics• Step 5: Get data for all participants• Step 6: Now you know
7 Primary Market Segments 7 Primary Market Segments
Segment1
Segment2
Segment3
Segment4
Segment5
Segment6
Segment7
DivisionD
DivisionB
DivisionF
DivisionA
DivisionC
DivisionG
DivisionE
Using Segmentation DataUsing Segmentation Data
• Identify which courses/events your top segments take and do more of them.
• Promote more to your top seven segments.
• Offer special deals to your top seven segments.
• Survey them and survey them again.• Find others that look like your best
customers.• Tailor promotions.• Build new desirable segments.
Let LERN Determine Your 7 Let LERN Determine Your 7 Primary Market SegmentsPrimary Market Segments
• LERN’s Segmenting Tool determines primary market segments, carrier routes, repeat rate, LifeTime Value, and star customers, as well as allowing you to generate mailing lists.
• For more information contact Greg Marsello at [email protected].
Thank You!Thank You!
[email protected]@lern.orgorg