To boardrooms and sustainability: the changing nature of segmentation

Market segmentation is the process by which customers in markets with some heterogeneity are grouped into smaller homogeneous segments of more ‘similar’ customers. A market segment is a group of individuals, groups or organisations sharing similar characteristics and buying behaviour that cause them to have relatively similar needs and purchasing behaviour. Segmentation is not a new concept: for six decades marketers have, in various guises, sought to break-down a market into sub-groups of users, each sharing common needs, buying behavior and marketing requirements. However, this approach to target market strategy development has been rejuvenated in the past few years. Various reasons account for this upsurge in the usage of segmentation, examination of which forms the focus of this white paper. Ready access to data enables faster creation of a segmentation and the testing of propositions to take to market. ‘Big data’ has made the re-thinking of target market segments and value propositions inevitable, desirable, faster and more flexible. The resulting information has presented companies with more topical and consumer-generated insights than ever before. However, many marketers, analytics directors and leadership teams feel over-whelmed by the sheer quantity and immediacy of such data. Analytical prowess in consultants and inside client organisations has benefited from a stepchange, using new heuristics and faster computing power, more topical data and stronger market insights. The approach to segmentation today is much smarter and has stretched well away from the days of limited data explored only with cluster analysis. The coverage and wealth of the solutions are unimaginable when compared to the practices of a few years ago. Then, typically between only six to ten segments were forced into segmentation solutions, so that an organisation could cater for these macro segments operationally as well as understand them intellectually. Now there is the advent of what is commonly recognised as micro segmentation, where the complexity of business operations and customer management requires highly granular thinking. In support of this development, traditional agency/consultancy roles have transitioned into in-house business teams led by data, campaign and business change planners. The challenge has shifted from developing a granular segmentation solution that describes all customers and prospects, into one of enabling an organisation to react to the granularity of the solution, deploying its resources to permit controlled and consistent one-to-one interaction within segments. So whilst the cost of delivering and maintaining the solution has reduced with technology advances, a new set of systems, costs and skills in channel and execution management is required to deliver on this promise. These new capabilities range from rich feature creative and content management solutions, tailored copy design and deployment tools, through to instant messaging middleware solutions that initiate multi-streams of activity in a variety of analytical engines and operational systems. Companies have recruited analytics and insight teams, often headed by senior personnel, such as an Insight Manager or Analytics Director. Indeed, the situations-vacant adverts for such personnel out-weigh posts for brand and marketing managers. Far more companies possess the in-house expertise necessary to help with segmentation analysis. Some organisations are also seeking to monetise one of the most regularly under-used latent business assets… data. Developing the capability and culture to bring data together from all corners of a business, the open market, commercial sources and business partners, is a step-change, often requiring a Chief Data Officer. This emerging role has also driven the professionalism of data exploration, using more varied and sophisticated statistical techniques. CEOs, CFOs and COOs increasingly are the sponsor of segmentation projects as well as the users of the resulting outputs, rather than CMOs. CEOs because recession has forced re-engineering of value propositions and the need to look after core customers; CFOs because segmentation leads to better and more prudent allocation of resources – especially NPD and marketing – around the most important sub-sets of a market; COOs because they need to better look after key customers and improve their satisfaction in service delivery. More and more it is recognised that with a new segmentation comes organisational realignment and change, so most business functions now have an interest in a segmentation project, not only the marketers. Largely as a result of the digital era and the growth of analytics, directors and company leadership teams are becoming used to receiving more extensive market intelligence and quickly updated customer insight, so leading to faster responses to market changes, customer issues, competitor moves and their own performance. This refreshing of insight and a leadership team’s reaction to this intelligence often result in there being more frequent modification of a target market strategy and segmentation decisions. So many projects set up to consider multi-channel strategy and offerings; digital marketing; customer relationship management; brand strategies; new product and service development; the re-thinking of value propositions, and so forth, now routinely commence with a segmentation piece in order to frame the ongoing work. Most organisations have deployed CRM systems and harnessed associated customer data. CRM first requires clarity in segment priorities. The insights from a CRM system help inform the segmentation agenda and steer how they engage with their important customers or prospects. The growth of CRM and its ensuing data have assisted the ongoing deployment of segmentation. One of the biggest changes for segmentation is the extent to which it is now deployed by practitioners in the public and not-for-profit sectors, who are harnessing what is termed social marketing, in order to develop and to execute more shrewdly their targeting, campaigns and messaging. For Marketing per se, the interest in the marketing toolkit from non-profit organisations, has been big news in recent years. At the very heart of the concept of social marketing is the market segmentation process. The extreme rise in the threat to security from global unrest, terrorism and crime has focused the minds of governments, security chiefs and their advisors. As a result, significant resources, intellectual capability, computing and data management have been brought to bear on the problem. The core of this work is the importance of identifying and profiling threats and so mitigating risk. In practice, much of this security and surveillance work harnesses the tools developed for market segmentation and the profiling of different consumer behaviours. This white paper presents the findings from interviews with leading exponents of segmentation and also the insights from a recent study of marketing practitioners relating to their current imperatives and foci. More extensive views of some of these ‘leading lights’ have been sought and are included here in order to showcase the latest developments and to help explain both the ongoing surge of segmentation and the issues under-pinning its practice. The principal trends and developments are thereby presented and discussed in this paper

Applicability of the user engagement scale to mobile health : a survey-based quantitative study

Background: There has recently been exponential growth in the development and use of health apps on mobile phones. As with most mobile apps, however, the majority of users abandon them quickly and after minimal use. One of the most critical factors for the success of a health app is how to support users’ commitment to their health. Despite increased interest from researchers in mobile health, few studies have examined the measurement of user engagement with health apps. Objective: User engagement is a multidimensional, complex phenomenon. The aim of this study was to understand the concept of user engagement and, in particular, to demonstrate the applicability of a user engagement scale (UES) to mobile health apps. Methods: To determine the measurability of user engagement in a mobile health context, a UES was employed, which is a psychometric tool to measure user engagement with a digital system. This was adapted to Ada, developed by Ada Health, an artificial intelligence–powered personalized health guide that helps people understand their health. A principal component analysis (PCA) with varimax rotation was conducted on 30 items. In addition, sum scores as means of each subscale were calculated. Results: Survey data from 73 Ada users were analyzed. PCA was determined to be suitable, as verified by the sampling adequacy of Kaiser-Meyer-Olkin=0.858, a significant Bartlett test of sphericity (χ2300=1127.1; P<.001), and communalities mostly within the 0.7 range. Although 5 items had to be removed because of low factor loadings, the results of the remaining 25 items revealed 4 attributes: perceived usability, aesthetic appeal, reward, and focused attention. Ada users showed the highest engagement level with perceived usability, with a value of 294, followed by aesthetic appeal, reward, and focused attention. Conclusions: Although the UES was deployed in German and adapted to another digital domain, PCA yielded consistent subscales and a 4-factor structure. This indicates that user engagement with health apps can be assessed with the German version of the UES. These results can benefit related mobile health app engagement research and may be of importance to marketers and app developers

Mobility on Demand in the United States

The growth of shared mobility services and enabling technologies, such as smartphone apps, is contributing to the commodification and aggregation of transportation services. This chapter reviews terms and definitions related to Mobility on Demand (MOD) and Mobility as a Service (MaaS), the mobility marketplace, stakeholders, and enablers. This chapter also reviews the U.S. Department of Transportation’s MOD Sandbox Program, including common opportunities and challenges, partnerships, and case studies for employing on-demand mobility pilots and programs. The chapter concludes with a discussion of vehicle automation and on-demand mobility including pilot projects and the potential transformative impacts of shared automated vehicles on parking, land use, and the built environment

Striking a Balance Between Physical and Digital Resources

In various configurations—be they academic, archival, county, juvenile, monastic, national, personal, public, reference, or research, the library has been a fixture in human affairs for a long time. Digital — meaning, content or communication that is delivered through the internet, is 20 years old (but younger in parts). Basically, both approaches to organizing serve to structure information for access. However, digital is multiplying very fast and libraries all-round contemplate an existential crisis; the more hopeful librarians fret about physical and digital space. Yet, the crux of the matter is not about physical vs. digital: without doubt, the digital space of content or communication transmogrifies all walks of life and cannot be wished away; but, the physical space of libraries is time-tested, extremely valuable, and can surely offer more than currently meets the eye. Except for entirely virtual libraries, the symbiotic relationship between the physical and the digital is innately powerful: for superior outcomes, it must be recognized, nurtured, and leveraged; striking a balance between physical and digital resources can be accomplished. This paper examines the subject of delivering digital from macro, meso, and micro perspectives: it looks into complexity theory, digital strategy, and digitization

Multichannel in a complex world

The proliferation of devices and channels has brought new challenges to just about every organisation in delivering consistently good customer experiences and effectively joining up service provision with marketing activity, data and content. A good multichannel strategy and execution is increasingly becoming essential to marketers and customer experience professionals from every sector. This report seeks to identify the key issues, challenges and opportunities that surround multichannel and provide some best practice insight and principles on the elements that are key to multichannel success. As part of the research for this report, we spoke to six experienced customer experience and marketing practitioners from large organisations across different sectors. In Multichannel Marketing: Metrics and Methods for On and Offline Success, Akin Arikan (2008) said: ‘Because customers are multichannel beings and demand relevant, consistent experiences across all channels, businesses need to adopt a multichannel mind-set when listening to their customers.’ It was clear from the companies interviewed for this report that it remains challenging for many organisations to maintain consistency across so many customer touchpoints. Not only that, but the ability to balance consistency with the capability to fully exploit the unique attributes of each channel remains an aspiration for many. The proliferation of devices and digital channels has added complexity to customer journeys, making issues around the joining up of customer experience and the attribution of value of key importance to many. Whilst senior leaders within the organisations spoken to seem to be bought in to multichannel, this buy-in was not always replicated across the rest of the organisation and did not always translate into a cohesive multichannel strategy. A number of companies were undertaking work around customer journey mapping and customer segmentation, using a variety of passive and actively collected data in order to identify specific areas of poor customer experience and create action plans for improvement. Others were undertaking projects using sophisticated tracking and tagging technologies to develop an understanding of the value and role of specific channels and to provide better intelligence to the business on attribution that might be used to inform future investment decisions. A consistent barrier to improving customer experience is the ability to join up many different legacy systems and data in order to provide a single customer view and form the basis for delivery of a more consistent and cohesive multichannel approach. Whilst there remain significant challenges around multichannel, there are some useful technologies allowing businesses to develop better insight into customer motivation and activity. Nonetheless, delivery of seamless multichannel experience remains a work-inprogress for many

The objectness of everyday life: disburdenment or engagement?

The article grew out of a conference paper, ‘The objectness of everyday life: engagement and disburdenment’, Material Geographies, UCL, September 2002. An expanded version of the paper was included in a special themed section of an issue of Geoforum. The paper intervenes into contemporary philosophical scholarship on the nature of use-value, usability, design and ethics. The article has been directly engaged with in an academic journal; Christensen, Carleton B. (2005) ‘The Material Basis of Everyday Rationality: transformation by design or education?’, Design Philosophy Papers No.4,)

Supporting community engagement through teaching, student projects and research

The Education Acts statutory obligations for ITPs are not supported by the Crown funding model. Part of the statutory role of an ITP is “... promotes community learning and by research, particularly applied and technological research ...” [The education act 1989]. In relation to this a 2017 TEC report highlighted impaired business models and an excessive administrative burden as restrictive and impeding success. Further restrictions are seen when considering ITPs attract < 3 % of the available TEC funding for research, and ~ 20 % available TEC funding for teaching, despite having overall student efts of ~ 26 % nationally. An attempt to improve performance and engage through collaboration (community, industry, tertiary) at our institution is proving successful. The cross-disciplinary approach provides students high level experience and the technical stretch needed to be successful engineers, technologists and technicians. This study presents one of the methods we use to collaborate externally through teaching, student projects and research

Driver-Vehicle Interactions in 4WDs: A Theoretical Review

With the escalating number of four-wheel drive (4WD) vehicles present on Australian roads, it is becoming increasingly important to understand the factors contributing to 4WD crashes. While 4WDs and other cars often differ in their performance characteristics, it is also possible that there are differences in driver-vehicle interactions which go beyond performance characteristics and relate more to social and personal perceptions. This paper reviews the theoretical approaches and concepts that may be used to understand the relationship between drivers and vehicles. It is noted that in recent sociological and psychological literature the conceptualization of driving has varied across multiple theoretical approaches. Some have constructed driving as a set of social practices, embodied dispositions, cybernetic associations and physical affordances, while other approaches have constructed the vehicle as a territory, and the vehicle as an extension of the driver (Dant, 2004; Fraine, 1999; Sheller, 2004). This review will discuss how these constructs may be applied to 4WD driver behaviour. Further, it will provide suggestions for methodology for future studies that aim to enhance knowledge of 4WD driver behaviour and the factors which contribute to 4WD crashes

Understanding VR/AR in marketing & sales for B2B: an explorative study

Abstract. The research explored the impact of immersive reality technologies, particularly VR and AR, in marketing and sales for the B2B sector. Study interests were fuelled by both an industrial hype and vehement investments on these technologies, especially in the last five years. However, the potential of these technologies is still unexplored and widely misunderstood by businesses as the innovations are slowly taking off. Additionally, existing literature showed a need to clearly define various simulated realities in the continuum, including VR and AR, as well as a general misunderstanding of the potential of immersive reality technologies, and a shortage of studies covering holistically different VR/AR applications in marketing, especially for the B2B sector. Therefore, this research aims to bridge the gap between managerial and academic’ understanding by providing a holistic framework explaining the impact of immersive reality technologies in B2B marketing and sales and provide a clear distinction between VR and AR in the Virtuality-reality continuum. This research also aims to assist marketers and managers in embracing these technologies to better meet the needs of future generations. The study adopted a qualitative exploratory approach allowing researchers to gain an in-depth understanding of the topic from an industrial perspective. The study used an abductive thematic analysis approach to analyse empirical results and ten semi-structured interviews with eleven VR/AR providers for primary data collection. Results were structured based on four main themes, namely: VR and AR definitions, customer technology adoption factors, VR/AR impact and applications on B2B marketing, and last, VR/AR impact on sales performance outcomes. This study contributes to the existing literature by proposing a tentative definition for each terminology “VR” and “AR” separately that merges academic perspectives and industry insights. Overall, empirical study suggests that immersive reality technologies can affect both marketing activities and sales performance outcomes for the B2B sector. However, successfully embracing these technologies calls for collaboration to overcome financial, technical and social barriers while also enhancing aspects like the user experience to step out of the still immature VR/AR market. VR and AR together have an impact on marketing for B2B by enhancing customization, non-verbal communication, learning and experiential marketing while also creating memorable experiences that stick in the minds of the consumer. Concerning the customer’s purchasing journey, this study extends existing literature to cover all customer purchasing stages, including the pre-purchase, purchase and post-purchase. Results emphasize the pre-purchase phase as the most impacted by immersive reality technologies, followed by post-purchase and purchase stages, respectively. Finally, this study suggests that the use of VR/AR as sales support tools can yield positive efficiency returns through higher task performance and a reduction in sales-related costs, and positive effectiveness returns through greater customer and social engagement, stronger collaborative business relationships and the enhancement of proactive (sales planning) and reactive (adaptive selling) behaviours in the sales process