o This paper will explore how evaluators can improve the usefulness of their findings by adapting the customer segmentation methods typically used by marketers. Segmenting customers helps marketers address groups of customers in different ways in order to maximize the groups’ value to the business. Evaluators can use the same techniques to help programs learn how to tailor services to different groups of clients in order to maximize the program’s social value. The paper will review segmentation methods, and present a case study using Heart and Stroke Foundation data on employees’ need for mission/science information.

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Customer Segmentation to Learn
What Works Well for Whom
Paul Bakker – Social Impact Squared
Steve Ayer – Common Good Strategies
Beverly Powell-Vinden – Heart & Stroke Foundation
CES Conference 2013
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Agenda
 Share what I have learned from
marketers
 Show the benefits of segmentation in
practice
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WHY LEARN FROM
MARKETERS
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Marketing Shares Many
Similarities to Evaluation
 Marketers are program designers and
evaluators
 As with marketing, social programs can vary
both the messages they deliver and the
medium of delivery.
 For most social programs to be successful
clients need to ‘buy’ into the program and it’s
theory of change.
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History of Segmentation in
Marketing
 One of the essential principals in modern
marketing
– “If you’re not thinking segments, you’re not
thinking marketing” - Theodore Levitt, the
Marketing Imagination (1983)
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MARKET SEGMENTATION:
QUICK REVIEW
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What is market segmentation
 Marketing is generally based off the idea of
segmenting the market, targeting a subgroup
in the market, and positioning your offering in
a way that will change the behaviour of that
subgroup
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Basic Market Segmentation Strategies
Geographic
Demographic
Product Usage
Life cycle
Stage of decision
making

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Segmentation Steps
1. Often start with informal theory.
2. “Informal” theory should help inform the
demographics that are recorded
3. Formal segmentation using data mining to associate
demographics with observed purchasing behaviour
and customer value. Marketers often use
randomization to figure out which segments respond
better to option A or B.
4. More sophisticated methods include merging survey
and customer data and creating segments based on
factor analysis, cluster analysis, tree maps, etc.
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Example of Market Segmentation Use
C. Non-target
market
(about 70%)
B. Moderate
prospects
(about 22%)
A. Strong
prospects
(about 8%)
• No specific
outbound
marketing
activity
• Emails and direct
mail
• Promoted webinars
and group product
tours
• Personal phone
calls
• Promoted individual
one-on-one product
tours
Market
Segment
Marketing
Tactic
Used

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Market Segments Should Be
 Internally consistent
 Substantially different from other segments
 Predict behaviour in some way
 Measureable
 Reachable
 Cost effective
 Useful
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EXAMPLE OF SEGMENTATION IN
EVALUATION
Heart and Stroke Foundation’s review of the
Mission Content Team’s role and future
direction
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Project Background
 The Mission Content Team is a team of science
specialists that facilitate knowledge transfer and
exchange between and among Heart and Stroke
Foundation stakeholders
 Overall Project Purpose:
– Determine potential for formal knowledge broker role at
HSF and whether this role could be filled by MCT.
 Components:
– literature review
– environmental scan
– stakeholder interviews
– needs assessment survey (segmentation of results)
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Segments Used
 We broke results down by office location and
job title, as those variables drove unique
information need and use patterns.
 Segments:
– Marketing & Communications (all are in the Provincial
Office)
– Provincial Office Fundraisers
– Provincial Office Research, Advocacy, and Health
Promotion staff
– Regional/Local Office Fundraisers
– Regional/Local Office Research, Advocacy, and Health
Promotion staff
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Overall Results – Sources of
Mission / Science Information
N=85
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Segmented Results – Using MCT
for Mission / Science Information
Question: In general, where do you search for mission - / science- information?
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.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
90.0%
100.0%
Mission Content Team
Marketing & Communications
(Provincial) (N=14)
Fundraising (Provincial) (N=24)
Research, Advocacy or Health
Promotion (Provincial) (N=18)
Fundraising (Regional/Local)
(N=13)
Research, Advocacy or Health
Promotion (Regional/Local)
(N=8)

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Segmented Results – Using Internet
Searches for Mission/Science Information
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Question: In general, where do you search for mission - / science- information?
.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
90.0%
Internet search engines
Marketing &
Communications
(Provincial) (N=14)
Fundraising (Provincial)
(N=24)
Research, Advocacy or
Health Promotion
(Provincial) (N=18)
Fundraising (Regional/Local)
(N=13)
Research, Advocacy or
Health Promotion
(Regional/Local) (N=8)

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Overall Results – Awareness of
Services
In-person
consultations
Requests via
email
Researcher
Speaker
program
Mission Round
program
Mission
Soundbite
Factsheets
Extremely
aware
Moderately
aware
Somewhat
aware
Slightly
aware
Not at all
aware
Average
Rank
N=77
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Segmented Results – Awareness
of Services
Extremely aware
Moderately aware
Somewhat aware
Slightly aware
Not at all aware
AverageRank
Question: The Mission Content Team provides a variety of services and resources. Please rate
your level of AWARENESS of each of the following:
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In-person consultations
Marketing &
Communications
(Provincial) (N=13)
Fundraising (Provincial)
(N=23)
Research, Advocacy or
Health Promotion
(Provincial) (N=17)
Fundraising
(Regional/Local) (N=12)
Research, Advocacy or
Health Promotion
(Regional/Local) (N=8)

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Overall Results Using
Segmentation
 Highlighted to customize approach to working
with the different segments.
 Plans to customize:
– type of information
– mode of delivery
– format of information
 Will host focus group with regional fundraisers to:
– increase awareness
– Learn how to better assist them
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Main Take-Aways
 Only looking at overall results and offering
one-size fits all solutions reduces
effectiveness.
 Evaluators looking to explain what works well
for whom, can learn from marketing’s practice
of customer segmentation.
 Ask direct questions to test the program
options that are on the table.
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Thank You!
Paul Bakker – paul@socialimpactsquared.com
Steve Ayer – steve@goodstrategy.ca
Beverly Powell-Vinden – bvinden@hsf.on.ca
Questions?
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