💪 AUDIENCE SEGMENTATION ROCKS

Segmenting is one of the most powerful marketing tools there is. Why don't more firms do it?

FATE V FUTURE

What you want to know in culture, tech, travel, luxury, media, marketing and more. We’re on a mission to curate the Internet’s best newsletter. Any feedback? Simply reply.

London's new The Other House hotel (Jack Hardy / Conde Nast Traveller)

🔼 Tourist arrivals in Mykonos were up by at least 20% this year. “But locals say development has gone too far” »»

🔽 The amount of WiFi data streamed to at-home fitness bikes was down 23% year on year in the first of 2022. (Exercise bikes are the home WiFi devices that saw the steepest usage drop) »»

💬 “You're doing more for this country than our current government.” Budget meal recipes from UK creators on TikTok are surging »»

🛩️ South Kensington has a stylish new hotel: get to know London’s The Other House »»

👗 Ye is displeased with Adidas »»

💎 7. That's the percentage Rolex is hiking some new watch prices in the UK, thanks to the sliding pound »»

QUICKFATES

“The EU is on course to impose historic interventions in the energy market to rein in soaring prices, including considering a levy on excess profits and gas price caps” »»

This past Summer “is one of the coolest of the rest of our lives” »»

A new book comes out tomorrow all about “the escape fantasies” of billionaires worried about a total and complete societal breakdown. “Do they know something we don’t?” Hear from the author directly »»

Will AI replace actors? »»

Revolut is “slashing crypto trading fees by 20% starting October 2022” »»

More info on TikTok’s parent company's upcoming headset emerged. The thing might be more AR than VR: it’ll “feature an RGB camera to offer color pass-through video of one’s surroundings” »»

Check out the 7 best booths at Frieze Seoul »»

And get to know Seoul Vibe, “Netflix's latest big blockbuster action original out of Korea. Set in the lead-up to the historic 1988 Summer Olympics in Seoul, the film centres around five friends who collectively call themselves the Sanggye-dong Supreme Team” »»

Many visitors won't need a visa to visit Taiwan from next week, as “controls put in place to contain the spread of COVID-19” are eased »»

“Toronto home prices crashed 16% in the past 5 months, and the ‘historic correction’ isn’t close to done yet” »»

Amazon spent a lot of money on its new Lord of the Rings series: US$465m to produce the show, on top of the US$250m it paid for the rights. What remains to be seen: whether Prime members are interested »» The newsletter's author owned Amazon stock at the time of writing

…meanwhile, Amazon's “putting a three-day delay on reviews” for everything on Prime Video, including The Lord of the Rings: The Rings of Power. The idea is “to help stave off review bombing, or the act of flooding a particular show, movie, game, or book with negative remarks” »»

…and, another show Amazon's working on called Citadel, has also quietly become one of the most expensive every produced »»

A Syrian billionaire bought the Rydges Sydney Harbour at The Rocks for AU$100M, “securing the dated hotel” for 23% below asking. The 176 key (room) hotel has been for sale for 11 months »» 🔐

Sydney's famous opera house re opened after a huge interior reno »»

Accenture acquired a London climate change consultancy firm called Carbon Intelligence »»

How WhatsApp is trying to become the WeChat of India »»

“Apple’s reportedly set to reveal the AirPods Pro 2 this week” »» The newsletter's author owned Apple stock at the time of writing

Meanwhile, Apple Maps is “finally worth using” »»

Both brands and celebs are doubling down on NFTs… “but the market keeps tanking” »»

“Tesla is looking to hire recruiters in Quebec for a ‘high-volume’ effort, indicating the automaker’s plans to grow in Canada” »»

Look inside the Venice Film Festival’s hottest party »»

DEEPFATE 💪 AUDIENCE SEGMENTATION ROCKS

Segmenting is one of the most powerful tools in a company’s kit. But many early stage startups don't do this valuable exercise in earnest. They should

SEGMENTING IS ONE of the most powerful tools in a company’s kit.

  • Customer or audience segmentation is exactly what it sounds like: dividing your market (or audience) into smaller sub groups based on some sort of shared characteristics.

  • And this doesn't have to be super technical, or hard to do: the characteristics you use to segment your audience be anything: like, demographic (ie., age, relationship status, location) or psychographic/behavioral (ie., a personality type that is risk averse and loves to plan v “free spirited experimenters”).

  • I can not say enough good things about audience segmentation: it helps focus marketing efforts… and can uncover all sorts of growth, revenue, and even corporate strategy insights.

BUT. MANY EARLY stage startups don't do this valuable exercise in earnest.

  • In startupland, “growth” roles typically straddle marketing, sales, and product dev. Their aim is what it sounds like: grow revenue, and thus the company.

  • PMF, as most of you will know, stands for “product/market fit.” That refers to that oh-so-desirable scenario of operating in a healthy market, with a product or service that satisfies customer demand. (Sometimes only one half of that sentence is the case.)

  • In marketing, a “funnel” is a model or a system of blueprinting out your customer's ideal journey, from never having heard of you, to enthusiastic and loyal customer.

  • A “high touch funnel” would be one that relies on a lot of human involvement: picture junior sales people manually reaching out to hundreds of leads, and then sending the most promising ones to talented senior sales people, for them to demo the product and hopefully seal the deal.

  • A low touch funnel essentially tries to do the same set of actions, just without the humans: picture an engaging, well designed, well written, likeable survey that leads to an equally well-written series of likeable emails that push recipients to an engaging and enjoyable demo video… and then, of course, a compelling/high value sales offer.

PROBLEM: MANY EARLY stage startups struggle with all of this, especially that first part, segmentation.

  • They shouldn't.

  • According to Anna's great LinkedIn post: a lot of startups '“often think it doesn't pay off to’ segment.

  • “After all, they might not have identified meaningful user group characteristics yet,” probably making segmentation feel like a bit of random guessing game.

  • So? Her point: embrace that.

  • When startups are “not sure yet what makes a good customer,” they have to look “for some – literally any – meaningful patterns.”

  • Founders and startup marketers: don't fight the fact that “at this point, it's more art than science…” and recognize that you “might have to change your segmentation criteria multiple times.”

  • That's OK! Marketing is living, breathing thing that does and should always morph shapes and shift directions.

SO, WHERE TO start with all this… and what's the point here?

  • Start segmenting simply! Keep it as basic as location. Category sophistication. Or what they've purchased from you already.

  • Her edtech startup “started categorizing our users” by:

— Country

— Role/Grade level (e.g. preschool teacher/homeschooling parent)

— Plan (freemium/paid business yearly/paid individual yearly/paid individual monthly)

  • Doing so uncovered a few interesting country-by-country trends, including ones they couldn't explain.

  • That is not a bad thing, but rather an excellent “starting point for further (qualitative) investigation.”

  • Bottom line: a segmentation project is one of the most powerful levers a startup can use to achieve PMF.

  • It's also one of my marketing consultancy’s most recommended projects, and one we love talking about. Interested in more? Email [email protected] to let us know.

More

Anna Holopainen’s LinkedIn post »»

Written by Jon Kallus. Any feedback? Simply email [email protected]

Join the conversation

or to participate.