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Market segmentation: how does it work with online social networks? Paul Fennemore, Managing Director, Viapoint and Researcher and Lecturer, Henley Business Schoolhttp://www.socialmedia-forum.com/europe/TRANSCRIPT
Market segmentation: how does it work with onlinesocial networks?
[email protected]@paulfennemoreT: 0845 319 3707M: 0777 5823386
stand 28
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•Based on objective research
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 ?
The past was about one to many and shouting the loudest
× 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
Marketing Practices Need Changing?
Is basic, static demographic segmentation becoming less useful?
•Travelled•Mobile•Informed•Influenced•Visible
Consumers /buyers are more:
Broadcasting
•Static demographic segments
•Presumed characteristics
Engagement
•Dynamic– Anywhere– Anytime– Real-time– Interactive – Multimedia
•Actual behaviour
Transitioning
Demographics/ Firmographics
Demographics. Psychographics
Demographics. Psychographics Syncrographics Webographics Personas
Expe
rtise
& R
esou
rces
#customers + #product variations = #segments & sophistication
The Variation of Segmentation Adoption
Trends:• Viewed as increasingly important• Using ‘trial and test’ strategy• The view that basic and static segments are becoming less valuable
Leadership Strategy Integrated Governance Resources Communities Content SocialCRM
Strategic
Social Commerce Adoption Framework
Source: ©Paul Fennemore, Viapoint 2011
Experimental
Tactical
True Profile Data Sources Data Renaissance 8 fold increase by 2016
TraditionalSegment PushBroadcasted messaging
Segment 1Not targetedDisaffected response
Segment 2TargetedAttracted response
Segment 3Not targeted
Neutral response
Target Segment Only
Attracted
Source: ©Paul Fennemore, 2011
Segment PullTargeted Segment Only
Social NetworkCommunity of Interest
Segment Push vs. Segment Pull
•Psychographicsegmentation
• Onlinecommunities
•Homogeneous groups• Interest groups
Broa
dcas
ting
One
to M
any
ConversationsO
ne to One
Cost /TimeLower Higher
• Social Capital• Creators
• eInfleuncers• Brand evangelists
•Community evangelists• Unhappy customers
• Trolls?
• Demographics•Heterogeneous market segments
Prioritisation of Engagement Points
Source: ©Paul Fennemore, Viapoint 2011
Social Network Engagement Continuum
EngagementLower Higher
Social Media
Segmentation
Strategies
Consumer Power
“They choose how they
want to be treated”
Find where existing
segments congregate e.g. Surfers,
Bands, Mums,
Health, ITEarned
Engagement
Segmentation Pull
Creating own community of common
interest
Social Network PlatformsEach is a different segment variable.
Psychographics
/Socialgraphics
Attitude, Opinions, Interest, Actions, Passion Points,
Motivation, ‘Likes’
Media TypeOwned, Bought, Earned
Conclusions in Summary
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
1. Traditional segments do cross over
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
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