Segmentation can be utilized for a variety of research applications where determining the types of customers within a market is essential. Many companies experience a low rate of customer retention. In order to identify ways of keeping customers, one marketer asked why his customers were switching to the competition. Rockbridge segmented the former customers based on their attitudes, and found distinct groups who perceived the service category very differently, and therefore, had unique motivations for turning to the competition. Some customers were satisfied with the service but left because the competition offered a better deal, while others were unhappy with the service they were receiving and switched to gain better service.
Determine service needs.
Not all consumers want the same level and type of service when they purchase a product or service. This became evident when a lending company hypothesized that different groups of its customers required distinct levels of service. Rockbridge segmented its customers on needs and found that they indeed wanted differing levels of service. Others wanted to be left alone, meaning they would call the service representative only when needed. Assess emerging markets.