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How to see your customers in 4-D: the secret to effective target audience segmentation

toddunger1

Updated: Jan 23

Want to really get to know your target customer?


Then learn to see them in "4-D."


One of the secrets I've learned about target segmentation is to combine and layer 4 types of data to build a more actionable and insightful target profile:


--behavioral

--attitudinal

--product concept reactions

--(lastly) demographics


It always amazes me to see how people naturally sort out into different buckets once you combine these different types of data. This approach will allow you to separate those who will be interested in a product or service from those who won't and gives you a quick sense of market size. And--you'll get a clear sense of why certain groups respond.


Without taking this approach, or focusing exclusively on demographic characteristics, some of the underlying consumer dynamics will be invisible. And that can lead you down a very unproductive path as you develop your brand positioning, creative and media plans.


You can use this approach to evaluate both new products you're developing AND to better understand your existing audience and possible growth opportunities. And you don't necessarily have to spend a ton of money either. I've taken this approach in a very scrappy way, using a tool like Survey Monkey and doing my own analysis. On the more expensive side, I've worked with outside firms on more sophisticated studies where the patterns of segmentation might not be visible to the naked eye.


I spoke with Jochem van der Veer at TheyDo Journey Management about this 4-D technique covered in my book The 10-Second Customer Journey, and he created this amazing diagram I wish I'd made for the book:



(Check out the full video/podcast with Jochem for great insights on how to hone your target audience and more secrets of the 10-Second Customer Journey.)


I learned this methodology many years ago in my advertising days. I've successfully employed the technique in every new job since, and it's been inevitably transformative in each case. Here's a great example of how I've used the 4-D target segmentation in one of my past roles, as CDO/CMO of the Daily Racing Form, a media property covering horse racing:


Challenge

Determine target audience profile and size for a potential premium content service, essentially a paywall for high-value content and analysis, previously free.


Approach

Using the 4-D segmentation method, I created a battery of survey questions across the following categories:


Behavioral--What were specific relevant behaviors that might impact interest, e.g.: How often did the person visit the Daily Racing Form website (DRF.com). How often did they bet on horse races? How much did they bet in a month? How often did they visit the track? Did they have an online betting account?


Attitudinal--this section captured feelings and beliefs that might be relevant to their interest, e.g.: What did they think about DRF news relative to other sources? How confident were they about betting? What was their risk tolerance?


Product Concept: I provided a quick overview of the premium content service and benefits, then asked for reactions on a 5-pt scale.


Demographics: Here's where we captured the typical demos about age, income, geography, etc.


I fielded the survey through Survey Monkey. I was shocked to receive thousands of responses. Note: in this case, I'd probably get an "F" for randomized sampling and other errors, but I understood that limitation going in.


Initially, when we began entertaining the idea of a premium content service, there was an assumption that every horseplayer would be "in market" for a product like this. However, after analyzing the data, what became apparent that a combination of 3 key characteristics would separate out the target from the "chaff" so to speak:


1) Had an online betting account

2) Visited the DRF.com website more than 3 times a week

3) Felt that DRF's news and analysis was superior to other alternatives


Those who fell into all 3 of these buckets were significantly more interested in our premium content offering than anyone else.


Now, you might say, that's not exactly rocket science. But again, there was a big difference between "everyone will be interested in this" vs. reality. It turns out that less than 2% of horseplayers in our survey met this criteria, indicating this was more of a niche opportunity. By understanding this, it helped us to configure the product better and think about how to market it effectively to this audience.


You can find several more examples of how to apply the 4-D segmentation approach in my book, The 10-Second Customer Journey. Start applying it to your business today.

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