Services Marketing Segmentation Example
Segmentation Summary
Segment > Target > Position > Profit!!!
To get a product or service to the right person or
company, a marketer would firstly segment the
market, then target a single segment or series of
segments, and finally position within the segment(s).
Services Marketing Segmentation
Segmentation is the identification of subsets of
buyers within a market who share similar needs and
who demonstrate similar buyer behavior.
Segmentation aims to match groups of purchasers
with the same set of needs and buyer behavior. Such
a group is known as a 'segment'. Think of your
market as an orange, with a series of connected but
distinctive segments, each with their own profile.
Segmentation aims to match groups of purchasers
with the same set of needs and buyer behavior. Such
a group is known as a 'segment'.
Defining Segments
Segmentation is sometimes difficult to do!
Defined Segments should meet the following criteria:
Can we make a profit from it?
Is the segment accessible? How easy is it for us to get into the
segment?
Is the segment measurable? Can we obtain realistic data to
consider its potential?
The are many ways that a segment can be defined.
by geography - such as where in the world was the product bought
by psychographics - such as lifestyle or beliefs
by socio-cultural factors - such as class
by demography - such as age, sex, and so on.
Segmentation…
Forces us to better know the VOC and CCRs
Allows us to match the right Services Solution with
segment need.
GAP 1: Deliverable CSA Stimuli
Segment 1 Segment 2 Segment 3 Segment 4
Timeliness
Business advice
● ● ● ●
Training for operators, mechanics, ● ● ● ●
technicians ● ● ● ●
Coverage for theft ● ● ● ●
Help in managing costs and improving ● ● ● ●
efficiency ○ ● ○ ●
Handbooks, information (available online?)
Equipment demos and events
○ ● ○ ●
Seminars (e.g., managing maintenance ○ ● ○ ●
costs) ● ● ● ●
Better understanding of cost details ● ●
Parts availability (guaranteed delivery in X ● ●
● ● ● ●
hours)
Financing ● ● ● ●
Guaranteed maintenance costs ● ● ● ●
Risk protection ○ ● ○ ●
Guaranteed buy back ○ ● ○ ●
Consulting ○ ●
Loaner machine during downtime ○ ●
Inspections
….
Segmentation Process
Gather existing primary data
DBS
Demographics
Sales
Equipment Information
PTOS
Opportunity
Dealer Databases
Surveys
Seek out secondary data sources as appropriate
Customer Lists, etc.
Segmentation Process
Analyze the Data
Excel…
Access…
Cognos...
Look for patterns in your data
Seek out and define segments
Segmentation Summary
Data sources:
PTOS
DBS
Customer Value Surveys (2001 – 2005)
Segmentation Summary
Data sources:
PTOS
DBS
Customer Value Surveys (2001 – 2005)
Segmentation Summary
Value Segments Based on Size
and Parts POPS-C
Segmentation Summary
IRON Larger customers with
PLATINUM--Big and loyal whom we lose a large portion of
customers, capture most of business. Need to know what
business would drive them to spend
more with Cat.
GOLD Smaller customers,
but we capture most of LEAD Small customers with
business. More sales means no brand loyalty to Cat. Low
growing them as companies. DCAL and low number of
machines.
Segmentation Summary
We’re Losing a lot of
potential sales to this
group.
Segmentation Summary
Not as “loyal” as other
segments.
What do we focus on to address this?
Segmentation Summary
Lowest Scoring Results for IRON Segment
VOC from the
Survey!
Segmentation Summary
GOLD Segment
“Expectations are high – are we following through?”
Highest Scores by Value Segment
CSAs Score High in Each Segment!!!
Platinum – Avg 5.9
Gold – Avg 5.1
Iron – Avg 6.3
Lead – Avg 5.9
Lowest Scores by Value Segment
Platinum – Avg 5.9
Gold – Avg 5.1
Iron – Avg 6.3
Lead – Avg 5.9
Value Segment Summaries
Platinum Gold Iron Lead
Customers Number 31 331 145 2,324
Percent 1% 12% 5% 82%
Cat Eqpt Number 703 712 3,776 4,766
Avg. 23 2 26 2
Percent 7% 7% 38% 48%
Parts Sales/Cat Eqpt $3,485 $3,384 $777 $579
POPS-C 182% 311% 16% 5%
Avg. Survey Score 5.88 5.08 6.15 5.61
Top Models CV713 420D D6D D6D
Machine 844S D6D 120G 320L
D6C D4H D6R D6C
Engine 3306B 3412 3306B 3306B
3208 3208 3126 3208
3304B 3306B 3412 3306
Average Age 31 20 27 23
GAP 1: Deliverable CSA Stimuli
PLATINUM GOLD IRON LEAD
Timeliness
Business advice
● ● ● ●
Training for operators, mechanics, ● ● ● ●
technicians ● ● ● ●
Coverage for theft ● ● ● ●
Help in managing costs and improving ● ● ● ●
efficiency ○ ● ○ ●
Handbooks, information (available online?)
Equipment demos and events
○ ● ○ ●
Seminars (e.g., managing maintenance ○ ● ○ ●
costs) ● ● ● ●
Better understanding of cost details ● ●
Parts availability (guaranteed delivery in X ● ●
● ● ● ●
hours)
Financing ● ● ● ●
Guaranteed maintenance costs ● ● ● ●
To Be Risk protection
Determined… ○ ● ○ ●
Guaranteed buy back ○ ● ○ ●
Consulting ○ ●
Loaner machine during downtime ○ ●
Inspections
….
GAP1: Focus Group Validation
Timeliness
Business advice
● ● ● ●
Training for operators, mechanics, ● ● ● ●
technicians ● ● ● ●
Coverage for theft ● ● ● ●
Help in managing costs and improving ● ● ● ●
efficiency ○ ● ○ ●
Handbooks, information (available onli ne?)
Equipment demos and events
○ ● ○ ●
Seminars (e.g., managing maintenance ○ ● ○ ●
costs) ● ● ● ●
Better understanding of cost details ● ●
Parts availability (guaranteed delivery in X ● ●
● ● ● ●
hours)
Financing ● ● ● ●
Guaranteed maintenance costs ● ● ● ●
Risk protection ○ ● ○ ●
Guaranteed buy back ○ ● ○ ●
Consulting ○ ●
Loaner machine during downtime ○ ●
Inspections
….
Next Steps…
Complete a similar analysis
with your data!
