A product’s success depends on many factors, including a stellar marketing strategy that resonates with the target audience. The trouble is that one product can mean different things to different customers.
This is where marketing efforts alone become ineffective with a one-size-fits-all approach.
It's why many organizations are turning to customer segmentation research.
This is a market research technique that is used to assign customers into groups where members are alike but the groups are distinct. Understanding the differences between customer segments opens up a realm of possibilities for marketing, customer service, and product development.
We’ll cover a real-world example in which our firm executed a segmentation study for a healthcare client to fuel their marketing plan for a new product.
The Challenge
A global medical device brand sought to understand the key segments of customers for a new women’s health medical product in its current portfolio.
The client had an idea of which types of physicians are using the product, but lacked information about their needs and preferences. Without knowing the intricacies of different users, marketing had become a challenge for the client.
The client reached out for market research support to address their segmentation objectives.
Segmentation is an advanced research method that is often best handled by research experts, either within a brand’s organization or via a trusted third-party research partner. It’s essential for companies to segment their customers, and those that do this are 60% more likely to understand their base.
The Solution
To accomplish the segmentation goals of the brand, Drive Research recommended an online survey as the methodology.
An online survey offered the most effective way to collect the necessary data that was needed for a customer segmentation.
The survey could collect critical information like the appeal of product benefits, decision making factors, brands used, marketing channels used, agreement with attitudinal statements, and other data.
The target audience for the survey included a mix of healthcare professionals who performed the relevant procedures on a regular basis and were users of competitive products. These respondents were reflective of the brand’s anticipated customer base for the segmentation.
Thinking about running your own segmentation study? Read more detail about the process in our blog post, How to Segment Your Customers.
The Approach
Below is the market research process we used to conduct the segmentation study.
Kickoff Meeting
The project started with a virtual kickoff meeting between Drive Research and the client to discuss the research objectives and expectations.
The kickoff meeting concluded with a clear outline of the project timeline and deliverables.
Kickoff meetings are an essential part of the market research process. Not only are they an ideal time to review project goals, but they act as a way for the client to become acquainted with our team. This can lead to better communication between both teams throughout the entire project, creating a smoother experience.
Survey Design
Using the information gathered from the kickoff meeting, we drafted a survey document of questions aimed at directly addressing the needs of the medical device brand.
When creating survey questions, it’s important to make sure they are clear, concise, and engaging for the respondent.
A screener section was featured at the beginning of the survey to confirm respondents were in the correct age group, industry, role, and specialty among other criteria. This step ensures the client will receive feedback from their desired target audience.
Survey Programming and Testing
Once the survey document was approved by the client, Drive Research set up the survey questions in an online platform. This phase consisted of rigorous testing to ensure the programming and logic in the survey functioned as intended.
Programming is an essential step in the process, as it ensures that respondents will have a clear understanding of the survey. This, in turn, leads to higher data quality.
Fieldwork
Next, data collection proceeded with an online panel of healthcare professionals. Fieldwork was completed within two weeks from start to finish.
During fieldwork, survey data was intermittently cleaned to guarantee only high quality responses were used for the analysis. Common red flags to look out for while cleaning survey data include duplicate entries, speedy completion times, and multiple skipped questions.
Analysis
A critical element of any segmentation study, the analysis included a deep dive into the survey data for answers. Using a cluster analysis, segments were identified based on various survey questions as inputs.
The goal of analysis is to determine the key themes and patterns discovered in the data as it relates to the client’s objectives.
Reporting
After the analysis was complete, a comprehensive presentation deck was created to communicate the learnings from the research.
The deck was delivered to the client and subsequently presented during a live debrief with a Q&A.
Similar to a kickoff meeting, debriefs are a chance for the client to ask any final questions and ensure their goals have been met.
The Results
While the insights remain confidential with the medical device brand, we can share that the study successfully helped the client understand their customer segments and what messaging works best for each of them.
Ultimately, three customer segments were identified through the market research. The client was equipped with informative personas for each segment to assist with future marketing efforts.
The survey collected 100 responses, providing a 10% margin of error. The difficulty of reaching healthcare professionals usually leads to more modest sample sizes such as this in medical quantitative market research versus a consumer study.
Contact Our Market Segmentation Company
Does your company need to gather data on a specific customer segment? Ready to handle any project, our team of experts knows their way around comprehensive segmentation to deliver specific consumer insights.
Curious about the rest of our market research services? Get in touch with us through any of the ways below.
- Message us on our website
- Email us at [email protected]
- Call us at 888-725-DATA
- Text us at 315-303-2040
Tim Gell
As a Senior Research Analyst, Tim is involved in every stage of a market research project for our clients. He first developed an interest in market research while studying at Binghamton University based on its marriage of business, statistics, and psychology.
Learn more about Tim, here.
