Target Audience · Segmentation · Component
The basis
What the division is built on, and why that predicts behaviour — because demographic divisions are easy to obtain and rarely predict anything.
The deliverable
What it is
Behavioural and needs-based divisions predict; demographic ones are easier to obtain. That trade explains why most segmentation is demographic and most segmentation is useless.
The test is straightforward: do the segments behave differently in the data? If two segments buy the same things at the same rate, the basis is not predicting anything.
One level in
What it is made of
Each element is a constituent part of the component. Follow one to see the attributes it carries.
The prediction test
Whether the segments actually behave differently.
3 attributes: Behavioural difference · Predicts · Tested
LearnThe data availability
Whether the organisation can actually tell which segment a customer is in.
3 attributes: Observable · What is missing · Data source
Learn
Check in the data whether the segments actually behave differently. If they do not, merge them.