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    Simplex Solutions > Segmentation


Purpose:


When to use:






Description:
To combine customers with similar attitudes, behaviors, product usage, etc. into homogeneous groups to identify which clusters are best for your brand/product to target.

Segmentation helps you to understand how potential customers ‘group’ in terms of why/how they buy.  Some customers may make their purchase decision based on emotions while others decide based on rational thought. Understanding these differences helps you position your product/service for maximum appeal to your target customer.  Segmentation is also useful when you have several product/service offerings that you want to position, optimizing combined overall market share while minimizing cannibalization.

Simplex uses a proprietary, holistic approach to segmentation looking at several independent factors (e.g., customer attitudes, behaviors, product usage, etc.) in order to develop a segmentation that best predicts purchase behavior.



segmentation

 

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