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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. Presented 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.
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FIGHTING THE ZOMBIE EFFECTUSING ACTIONABLE INSIGHT TO COMBAT BRAIN-DEAD VIEWS OF THE CUSTOMERGLEN DRUMMOND, CHIEF INNOVATION OFFICER
@QUARRY @GDRUMMOND #CEBSUMMIT
HOW SATISFIED ARE YOU WITH YOUR SEGMENTATIO
POLLQUESTION #1
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CUSTOMER
EXPERIENCE
OUR STARTING POINT
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CUSTOMER
EXPERIENCE
TARGETING STRATEGY
OUR STARTING POINT
@QUARRY @GDRUMMOND #CEBSUMMIT
CUSTOMER
EXPERIENCE
TARGETING STRATEGY
SEGMENTATION MODEL
OUR STARTING POINT
@QUARRY @GDRUMMOND #CEBSUMMIT
YOUR CUSTOMER EXPERIENCE INITIATIVES MIGHT BE IN DANGER
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
WHAT DO THESE BRANDS HAVE IN COMMON?
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DISRUPTION
THINK ABOUT
THE CUSTOMEREXPERIENCE
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THINK ABOUT
THE CUSTOMER
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THINK ABOUT
THE CUSTOMERFLEXIBLY
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WHAT COULD POSSIBLY GO WRONG?
THOUGHT EXPERIMENT
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PICTURE A
VIKING
WOULD YOU TRUST THE CARE OF THESE KITTENS TO YOUR VIKING?
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HOW’S MY DRIVING?
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“THE
PROTOTYPE
EFFECT”
SOME EXAMPLES ARE MORE EXEMPLARY
@QUARRY @GDRUMMOND #CEBSUMMIT
“THE PROTOTYPE EFFECT” AFFECTS OUR SENSE OF PROBABILITY @QUARRY @GDRUMMOND #CEBSUMMIT
THE ZOMBIE EFFECT
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“REALITY HAS CHANGED, BUT THE THEORY OF THE BUSINESS HAS NOT CHANGED WITH IT.”
PETER DRUCKER
ZOMBIE SEGMENTS• Cognitive prototypes
for “Customers”
• Strategically brain dead
• Still shuffling around
• Want your brain
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EPIDEMIC?
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THE STATE OF SEGMENTATION
$100MM to $10BB in salesSales, marketing and product development execsB2C and B2B companies
SAMPLE:
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THE STATE OF SEGMENTATION
$100MM to $10BB in salesSales, marketing and product development execsB2C and B2B companies
SAMPLE:
1 IN 5
don’t have a
segmentation model
(18%)
@QUARRY @GDRUMMOND #CEBSUMMIT
say their segmentation model
is not noticeably different from
their competitors’
3 IN 4(70%)
Of those that have one, nearly
THE STATE OF SEGMENTATION
$100MM to $10BB in salesSales, marketing and product development execsB2C and B2B companies
SAMPLE:
1 IN 5
don’t have a
segmentation model
(18%)
@QUARRY @GDRUMMOND #CEBSUMMIT
say their segmentation model
is not noticeably different from
their competitors’
3 IN 4(70%)
Of those that have one, nearly
THE STATE OF SEGMENTATION
$100MM to $10BB in salesSales, marketing and product development execsB2C and B2B companies
SAMPLE:
1 IN 5
don’t have a
segmentation model
(18%)let statistical modeling
determine their
segmentation model
Almost
1 IN 7(15%)
@QUARRY @GDRUMMOND #CEBSUMMIT
say their segmentation model
is not noticeably different from
their competitors’
3 IN 4(70%)
Of those that have one, nearly
THE STATE OF SEGMENTATION
$100MM to $10BB in salesSales, marketing and product development execsB2C and B2B companies
SAMPLE:
1 IN 5
don’t have a
segmentation model
(18%)let statistical modeling
determine their
segmentation model
Almost
1 IN 7(15%)
use a single, common
segmentation
model across their
organization
1 IN 10(10%)
Just
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POLL QUESTION #2
WHAT PERCENTAGE OF RESPONDENTS DO YOU THINK WERE SATISFIED WITH THEIR SEGMENTATION
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POLL QUESTION #2
OF RESPONDENTS WERE SATISFIED WITH THEIR SEGMENTATION MODEL.
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60
%
YIKES! WE’VE GOT ZOMBIES
AVOIDING THE APOCALYPSE
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HOW JOHN DEERE FOUGHT THE ZOMBIE EFFECT (AND YOU CAN TOO)
MYS
TERY
DA
TA
KNOWL
EDGE
INSI
GHT
INNOVA
TION
@QUARRY @GDRUMMOND #CEBSUMMIT
DEFINE THE PROBLEM FOR RESEARCH
MYS
TER
Y
DA
TA
KNOWL
EDGE
INSI
GHT
INNOVA
TION
@GDRUMMOND #CEBSUMMIT
GO ONSITE TO GET INSIGHT
@GDRUMMOND #CEBSUMMIT MYS
TER
Y
DA
TA
KNOWL
EDGE
INSI
GHT
INNOVA
TION
Motivation 1 Motivation 2
PAY ATTENTION TO UNARTICULATED CUSTOMER NEEDS
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Motivations in conflict
MYS
TER
Y
DA
TA
KNOWL
EDGE
INSI
GHT
INNOVA
TION
INTEGRATE QUALITATIVE AND QUANTITATIVE RESEARCHWITHOUT WITH
@GDRUMMOND #CEBSUMMIT MYS
TER
Y
DA
TA
KNOWL
EDGE
INSI
GHT
INNOVA
TION
BUILD A SINGLE, ACTIONABLE CUSTOMER FRAMEWORK
@GDRUMMOND #CEBSUMMIT MYS
TER
Y
DA
TA
KNOWL
EDGE
INSI
GHT
INNOVA
TION
Source: John Deere
STRUCTURE BEHAVIORAL AND DEMOGRAPHIC DATA AROUND ATTITUDINAL DIFFERENCES
@GDRUMMOND #CEBSUMMIT MYS
TER
Y
DA
TA
KNOWL
EDGE
INSI
GHT
INNOVA
TION
ATTITUDINAL
DEMOGRAPHIC
BEHAVIORAL
DEVELOP EMPATHY WITH PERSONAS
@GDRUMMOND #CEBSUMMIT MYS
TER
Y
DA
TA
KNOWL
EDGE
INSI
GHT
INNOVA
TION
USE THE MODEL TO STRUCTURE AND INTEGRATE OTHER DATA
@GDRUMMOND #CEBSUMMIT MYS
TER
Y
DA
TA
KNOWL
EDGE
INSI
GHT
INNOVA
TION
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
BUILD AN INTEGRATED CUSTOMER EXPERIENCE ACROSS TOUCHPOINTS
@GDRUMMOND #CEBSUMMIT MYS
TER
Y
DA
TA
KNOWL
EDGE
INSI
GHT
INNOVA
TION
BRING CUSTOMER EXPERIENCE TO LIFE
HOW SATISFIED ARE YOU WITH YOUR SEGMENTATI
POLL QUESTION #3
@QUARRY @GDRUMMOND #CEBSUMMIT
