Do you have zombies lurking in your customer segmentation model? Find out what they are, what dangers they pose and what you can do about them.
Presenting at the Corporate Executive Board (CEB) 2014 Sales & Marketing Summit, Glen Drummond explores this Zombie Effect, the state of customer segmentation (with new research from Quarry), and how John Deere redefined their approach to customer insight.
7. WHAT
YOU’LL
LEARN
• What is a zombie segment?
• What danger does it pose?
• Is the problem widespread?
• What can you do about it?
@QUARRY @GDRUMMOND #CEBSUMMIT
8. WHAT DO THESE BRANDS HAVE
IN COMMON?
@QUARRY @GDRUMMOND #CEBSUMMIT
20. “REALITY HAS
CHANGED,
BUT THE
THEORY OF
THE
PETER
DRUCKER
BUSINESS
HAS NOT
CHANGED
WITH IT.”
21. ZOMBIE
SEGMENTS
• Cognitive prototypes
for “Customers”
• Strategically brain dead
• Still shuffling around
• Want your brain
@QUARRY @GDRUMMOND #CEBSUMMIT
23. THE STATE OF
SEGMENTATION
$100MM to $10BB in sales
Sales, marketing and product development execs
B2C and B2B companies
SAMP
LE:
@QUARRY @GDRUMMOND #CEBSUMMIT
24. THE STATE OF
SEGMENTATION
1 IN
5
(18%)
don’t have a
segmentation model
$100MM to $10BB in sales
Sales, marketing and product development execs
B2C and B2B companies
SAMP
LE:
@QUARRY @GDRUMMOND #CEBSUMMIT
25. THE STATE OF
SEGMENTATION
Of those that
have one, nearly
3 IN
(704%)
say their segmentation model
is not noticeably different from
their competitors’
1 IN
5
(18%)
don’t have a
segmentation model
$100MM to $10BB in sales
Sales, marketing and product development execs
B2C and B2B companies
SAMP
LE:
@QUARRY @GDRUMMOND #CEBSUMMIT
26. THE STATE OF
SEGMENTATION
Of those that
have one, nearly
3 IN
(704%)
say their segmentation model
is not noticeably different from
their competitors’
1 IN
5
(18%)
don’t have a
segmentation model
$100MM to $10BB in sales
Sales, marketing and product development execs
B2C and B2B companies
SAMP
LE:
Almost
1 IN
(157%)
let statistical modeling
determine their
segmentation model
@QUARRY @GDRUMMOND #CEBSUMMIT
27. THE STATE OF
SEGMENTATION
Of those that
have one, nearly
3 IN
(704%)
say their segmentation model
is not noticeably different from
their competitors’
1 IN
5
(18%)
don’t have a
segmentation model
$100MM to $10BB in sales
Sales, marketing and product development execs
B2C and B2B companies
SAMP
LE:
Almost
1 IN
(157%)
let statistical modeling
determine their
segmentation model
Just
1 IN
(1100%)
use a single, common
segmentation
model across their
organization
@QUARRY @GDRUMMOND #CEBSUMMIT
28. POLL QUESTION #2
WHAT
PERCENTAGE OF
RESPONDENTS DO
YOU THINK WERE
SATISFIED WITH
THEIR
@QUARRY @GDRUMMOND #CEBSUMMIT
SEGMENTATION
29. POLL QUESTION #2
OF
60
%
RESPONDENTS
WERE SATISFIED
WITH THEIR
SEGMENTATION
@QUARRY @GDRUMMOND #CEBSUMMIT
MODEL.
33. HOW JOHN
DEERE FOUGHT
THE ZOMBIE
EFFECT
(MYS
AND DA
YOU KNOWL
INSI
CAN
INNOVA
TERY
TA
EDGE
GHT
TION
TOO)
@QUARRY @GDRUMMOND #CEBSUMMIT
34. DEFINE THE PROBLEM
FOR RESEARCH
MYS
TER
Y
DA
TA
KNOWL
EDGE
INSI
GHT
INNOVA
TION
@GDRUMMOND #CEBSUMMIT
35. GO ONSITE TO GET
INSIGHT
@GDRUMMOND #CEBSUMMIT MYS
TER
Y
DA
TA
KNOWL
EDGE
INSI
GHT
INNOVA
TION
36. PAY ATTENTION TO
UNARTICULATED
CUSTOMER NEEDS
Motivation 1 Motivation 2
@GDRUMMOND #CEBSUMMIT
Motivations in conflict
MYS
TER
Y
DA
TA
KNOWL
EDGE
INSI
GHT
INNOVA
TION
37. INTEGRATE
QUALITATIVE AND
QUANTITATIVE
RESEARCH WITHOUT WITH
@GDRUMMOND #CEBSUMMIT MYS
TER
Y
DA
TA
KNOWL
EDGE
INSI
GHT
INNOVA
TION
38. BUILD A SINGLE,
ACTIONABLE
CUSTOMER
FRAMEWORK
@GDRUMMOND #CEBSUMMIT MYS
TER
Y
DA
TA
KNOWL
EDGE
INSI
GHT
INNOVA
TION
Source: John Deere
39. STRUCTURE BEHAVIORAL
AND DEMOGRAPHIC
DATA AROUND ATTITUDINAL
DIFFERENCES
@GDRUMMOND #CEBSUMMIT MYS
TER
Y
DA
TA
KNOWL
EDGE
INSI
GHT
INNOVA
TION
ATTITUDINAL
DEMOGRAPHIC
BEHAVIORAL
40. DEVELOP EMPATHY
WITH PERSONAS
@GDRUMMOND #CEBSUMMIT MYS
TER
Y
DA
TA
KNOWL
EDGE
INSI
GHT
INNOVA
TION
41. USE THE MODEL TO
STRUCTURE
AND INTEGRATE OTHER DATA
@GDRUMMOND #CEBSUMMIT MYS
TER
Y
DA
TA
KNOWL
EDGE
INSI
GHT
INNOVA
TION
42. DRIVE ACTIONABILITY
WITH TOOLS
@GDRUMMOND #CEBSUMMIT MYS
TER
Y
DA
TA
KNOWL
EDGE
INSI
GHT
INNOVA
TION
Product-segment
interlock tool
Purchase path maps
(by persona)
Persona
baseball cards
Segment classification
tool
Segment actionability
matrix
Source: John Deere
43. BUILD AN INTEGRATED
CUSTOMER
EXPERIENCE ACROSS
TOUCHPOINTS
@GDRUMMOND #CEBSUMMIT MYS
TER
Y
DA
TA
KNOWL
EDGE
INSI
GHT
INNOVA
TION
They are all brands that once enjoyed stunning success.
In many cases they invented whole categories and led their industries for a time.
In every case, they have suffered a precipitous loss in market power, and shareholder value.
In several cases, the have had what Geoffrey Moore is now describing as their “Kodak moments”
Disruption is the spirit of our times.
Putting the preceding slides together, here’s what we can say:
The Zombie Effect is killing business potential across North America.
Organizations are building segmentation models in their own minds without letting the data (qual and quant) drive the model.
Multiple models across many organizations lead to disconnects between product design and dev, marketing, sales, and customer service.
Most organizations do not have a segmentation that is highly differentiated from the competition – that’s a problem for creating a differentiated brand position.
Segmentation is a critical leverage point in competitive advantage and the majority of organizations are not using a segmentation that gives them that advantage – the opportunity to drive greater relevance and resonance with customers is significant.
So, if you’re one of the organizations that may be threatened by zombies, what can you do about it?
The good news is there is a way to combat brain-dead views of the customer and avoid the apocalypse.
In the slides that follow, I’d like to take you through a purpose-built process that allows organizations to develop strategically actionable insight, get their organization aligned around that insight and get to a place where they’re ready to capture further growth.
And, as I unpack that process, I’ll share what a view into how John Deere used this process to combat the zombie effect in its halls.
Frame the research problem.
Understand the business context.
Learn about the intended uses of the insight in existing processes and decision-making.
Bring together the qualitative findings, statistical data and executive and stakeholder guidance.
Structure a proprietary and strategically-relevant view on the differences between customers that make a difference.
Develop customized framework that can interlace multiple views to support all functions.
Bring together the qualitative findings, statistical data and executive and stakeholder guidance.
Structure a proprietary and strategically-relevant view on the differences between customers that make a difference.
Develop customized framework that can interlace multiple views to support all functions.
Bring together the qualitative findings, statistical data and executive and stakeholder guidance.
Structure a proprietary and strategically-relevant view on the differences between customers that make a difference.
Develop customized framework that can interlace multiple views to support all functions.
Bring together the qualitative findings, statistical data and executive and stakeholder guidance.
Structure a proprietary and strategically-relevant view on the differences between customers that make a difference.
Develop customized framework that can interlace multiple views to support all functions.
Bring together the qualitative findings, statistical data and executive and stakeholder guidance.
Structure a proprietary and strategically-relevant view on the differences between customers that make a difference.
Develop customized framework that can interlace multiple views to support all functions.