Better Decisions: The era of consumer situationships
Over half of UK marketers believe consumer segmentation is an outdated and oversimplified marketing method
Research from Treasure Data reveals that six in ten UK marketers (61%) believe consumer segmentation - the categorisation of customers based on shared traits - is an outdated method of marketing, with 63% considering it totally unfit for purpose. The landscape has changed.
The report goes on to explore:
- Trends without benefits: The new realities of consumer behaviour, and the challenges and opportunities these create for marketers, explain why businesses need a first party data strategy in place to understand their audiences and make better decisions.
Warning signs are emerging amongst marketers, with over half (55%) expressing concern that consumers have become more complicated to understand over the last three years.
Diminishing returns from long-established modes of market segmentation signal a need for a new approach
- Out with segments: Six in ten (60%) marketers believe that segmentation is an outdated and oversimplified marketing method, with a similar number (62%) agreeing that the idea of fixed customer segments is no longer fit for marketing purposes. But, if consumer segments are out of fashion, how should brands target their customers?
- In with 'situationships': A momentary mindset based on an individual’s current mood, motivations and circumstances.
Situationships identify a number of different factors, beyond consumer segments, that motivate consumers’ purchasing decisions. Whilst some consumers may lean towards one or two particular situationships, others may adopt a more capricious approach, flitting between any number of different mindsets as their moods, needs, priorities or circumstances change.
Download a copy of the research now for a full summary of the findings and how to target by situation...