Many managers can rattle off statistics about them, i.e., what percentage are male, 18-24 years old, and like country music. Segmentation is an effective market research tool used to understand complex categories of customers in an existing or emerging market. Uses of Segmentation in Research Segmentation is usually conducted with a combination of methods that cluster consumers into groups with similar characteristics. Many marketers are familiar with classic lifestyle segmentation studies that classify people based on their activities, opinions, and interests. 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.