Why is reverse segmentation so sexy?

The sex appeal of big market research data often fades after it’s released because companies don’t know what to do with it.

The focus is on linking your terrifyingly interesting new research to your own customer and prospect data. Fortunately, there are simple ways to segment the market and break the pattern of mass marketing that leads many companies to “also executed” status. We call this reverse segmentation and it can create legends in the business world.

This is how reverse segmentation works. Almost everyone has a customer database and knowledge of vendors who can provide lists of potential customers. We may use data commonly found in these databases to develop market segments. For example, using data from a client’s customer list, we take income, education, and marital status as the basis for the segments.

Once these segments were formed, we psychographically profiled each segment using new market research. The key was that the market research project captured the three key demographics, as well as great insights into customer needs and attitudes. This allowed us and our client to organize common customer data against what really matters: customer needs, concerns, and motivations. It also allowed us to attribute likely market attitudes and behaviors to each customer in the customer database.

Market research that captured buyer psychographs and graphs yields particularly valuable information because it can be used to show differences in segment loyalty, profitability, and the best messaging to achieve goals. Armed with this information, teams can target existing customer segments and new prospects with the priority and intensity necessary for greater success. In fact, reverse targeting like this is often what’s needed to justify buying off of targeted lists.

It may take some careful analysis plus some trial and error, but I’m sure this puts companies in a better marketing position.