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/

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
T: 0845 319 3707
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

5. The past was about one to many and shouting the loudest

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

9. Is basic, static demographic segmentation
becoming less useful?
Consumers /buyers are more:
•Travelled
•Mobile
•Informed
•Influenced
•Visible
Broadcasting Engagement
•Static demographic segments •Dynamic
–Anywhere
Transitioning –Anytime
–Real-time
–Interactive
•Presumed characteristics –Multimedia
•Actual behaviour

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

11. Social Commerce Adoption Framework
Leadership Strategy Integrated Governance Resources Communities Content SocialCRM
Strategic
Tactical
Experimental
Source: ©Paul Fennemore, Viapoint 2011

12. True Profile Data Sources

13. Segment Push vs. Segment Pull
Segment 1 Segment 2 Segment 3
Not targeted Targeted Not targeted Target Segment Only
Disaffected Attracted Neutral
response response response
Attracted
Segment Pull
Traditional Targeted Segment Only
Segment
Push
Broadcasted Social Network
messaging Community of Interest
Source: ©Paul Fennemore, 2011

14. Social Network Engagement Continuum
Conversations
Cost /Time
Broadcasting
One to Many
One to One
Lower Higher
Lower Engagement Higher
Prioritisation of
Engagement Points
•Demographics •Psychographic •Online •Social Capital
•Heterogeneous segmentation communities •Creators
market segments •Homogeneous groups •eInfleuncers
•Interest groups •Brand evangelists
•Community evangelists
•Unhappy customers
•Trolls?
Source: ©Paul Fennemore, Viapoint 2011

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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