Consumer segmentation

A consumer segmentation identifies existing consumer segments within the market, their characteristics and how they differentiate in their purchase behavior, product usage and brand perceptions.

Most commonly, the consumer segmentation is one of the first studies to be carried out during the product innovation process. At this stage, consumer segmentation contributes to a clear definition of key segments in the market through the identification of, for example, common socio-demographic characteristics, perceptions of the existing market and product usage and patterns.

The consumer segmentation is also a valuable tool at later stages when experiencing shifts in the market dynamics, which will require are-identification of key segments.

Key insights from a consumer segmentation

  • Defined key segments
  • Sizing and value of key segments
  • Characteristics of each segment
  • Key differentiators

The insights gathered from the consumer segmentation will assist in optimizing your marketing ROI and identify which customers are the most important for your business.

We perform consumer segmentation using a range of different methods such as Latent Class Analysis, K-means clustering and hierarchical clustering. We advice you on which approach to take based on your specific requirement of the study in order to maximize the insights you gain from the consumer segmentation.


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