marsello market segmentation 06 (2) - Augusoft

Market Segmentation

Lifelong Learning 2007

Presented by Greg Marsello

To hear the presenter, call (605) 772-3434, access code 223-263-787

Brought to you by:

We Must Segment the Market…80/20 Principle

2To hear the presenter, call (605) 772-3434, access code 223-263-787

3

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.


4

Problems Caused by NOT Identifying Primary Market Segments

� Ineffective program selection

� Wasted promotion dollars

� Decrease in repeat rate

� Reduced operating margin

� Wasted staff time


5

The ideal number of market segments is 7.

Market 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.


6

Chart 1:Organization Participants

More Recent Less Recent

High Dollars/Activity

25%Highly active

25%Higher dollar/activity, but not

recent

Low Dollars/Activity

25%Recent, but nothigh dollar/activity

25%Least active,not recent, nothigh dollar/activity


7

Chart 2: Net Income

More Recent Less Recent

High80%

from mostactive

25%

Low25% -30%

from leastactive


8

Chart 3: Organization Resources

Time

25% here.This group isunderserved.

25% here.Okay.

Money

25% here.Okay.

25% here.Wasting timeand resources

here.


9

Chart 4: Efficiency Strategy

Staff Time

Money


10

Finding Your SevenPrimary Market Segments

� Step 1: Get web-hosted 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


11

Ideal Software System

Mailing List Word Processing

24/7 Registration

Brochures

Real-timeFinancial

Statements

Real-timeMarketing Analysis

Room Locations

Real-timeFinancial Analysis

“Live” Master Data FileCustomer

Demographics History


12









13

Recency

Moneta

ry V

alue/A

ctivity

Know Your Participants & Allocate Resources Accordingly


14









15

Critical Customer Demographics

� Geography*

� Age*

� Sex

� Formal Education

Community Courses/Events


16


� Geography

� Occupation*

� Job Title

� Age*

Continuing Professional Education


17


� Geography

� Age

� Sex

� Formal Education

� Race/Ethnicity

Credit Courses


18









19

Demographic Analysis Examples

Age Example 1 Example 218-20 20 10

21-25 20 70

26-30 20 30

31-35 20 20

36-40 20 40

41-45 20 10

46-50 20 10

51-55 20 5

56-60 20 5

61-65 20 0


20

Example of Analyzing Demographic Variables

CPE, Seminars, Conferences & Other Work-Related Events

Example 1 Example 2

Aerospace (3812-01) 2 16

Ambulance Services (4119-02) 4 9

Architects and Related (8712) 23 12

Attorneys (8111-03) 17 9

Bookkeeping Services (8721-02) 15 6

Bldg. Mat’l Suppliers (5211-26) 2 8

Carpet/Rug Cleaners (7217-04) 5 5

Consulting Companies (8742-01) 16 11


Example 1 Example 2

Computer Consult. (7379-05) 8 20

Convenience Stores (5411-03) 2 9

County Gov’ts (many) 1 14

Engineers (8711) 14 10

Hospitals (8062-02) 7 11

Insurance Adjusters (6411-02) 2 12

Landscape Contractors (0782-04) 1 9

Nail Salons (7931-02) 16 8

Printers (2752-02) 4 6

State Government (many) 12 16

Tractor Dealers (5083-04) 0 9

TOTAL 200 200


22

LERN’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 & Schoolswithin Universities


23

LERN’s Market Segments

1. Universities

2. Community Colleges

3. Associations

� Associations were 1% of LERN customers; decision made to grow segment; 20,000 U.S. associations

4. Parks & Recreation


5. Public Schools

6. Colleges & Schools within Universities

� Broken out from university growth focus

7. Technical Institutions

� Broken out from community colleges to give priority


25


� Step 1: Get web-hostedregistration software







26

Ways to Collect Demographic Data

� Automatic Online Registration Form

� Phone Registration

� Mail Survey

� Automatic Confirmation or Confirmation Card/Letter

� First Meeting

� Contact


27









7 Primary Market Segments

Segment1

Segment2

Segment3

Segment4

Segment5

Segment6

Segment7

DivisionD

DivisionB

DivisionF

DivisionA

DivisionC

DivisionG

DivisionE


29

Using 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.


30

� Survey them and survey them again.

� Find others that look like your best customers.

� Tailor promotions.

� Build new desirable segments.


31

Let LERN Determine Your 7 Primary 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].


32

Q&A Session Begins

� Submit a question via Gotowebinartool.

33

Thank You!

[email protected]


marsello market segmentation 06 (2) - Augusoft

Documents

Transcript of marsello market segmentation 06 (2) - Augusoft