Market Segmentation through CGM

For years marketers have defined market segmentation through demographic profiling. Television networks continue to target the coveted 18-49 year old age group. A high degree of viewership among this demographic segment typically means that the network is performing well. And why wouldn’t it, according to the latest data from the U.S. Census Bureau, that demographic represents about 50% of the U.S. population.

Gender, race, more defined age groups, and income often further segment this broad category. Additionally, marketers will segment by category interest or lifestyle preferences. For example, marketing for Gatorade tends to be focused on sports related market segments. Gatorade will advertise during game broadcasts to target viewers and will be prevalent on must sidelines to target participants.

Enter CGM

So how does CGM play into all of this? CGM creates a new segmentation variable that will become increasingly important as the market shifts toward mass customization. Consider the following example: Two virtually identical people buy virtually identical sports utility vehicles. Person A enjoys their purchase but drives infrequently. Person B also enjoys their purchase, but drives 50 minutes a day to work, is the coach of their daughter’s soccer team, and routinely takes the boat out on weekends.

Clearly, person B is more engaged with their SUV and subsequently your brand. The details outlined above indicate that a loyalty rating of person B would be much higher than that of person A. Person B is more likely to buy accessories for their SUV and they are more likely to purchase a second car from your brand. Conversely, person A would be more prone to switching brands simply because of their infrequent use of the product.

Until recently, companies have only been able to predict customer loyalty through surveying and purchase histories. General Motors recently launched a campaign that allowed consumers to create their own commercials for the Chevy Tahoe. Consider the value of a consumer that takes time from their schedule to promote your brand. Imagine if your company had multiple forums for consumer interaction with the brand. Now imagine if you could capture their information and rank their level of participation with your brand.

CGM is a tool that will allow your company to increase consumer interaction with your brand. Message boards, blogs, and promotions like the one by GM encourage consumer interaction with your brand. When embraced and integrated with unique user identification system and analytics CGM becomes a weapon for market segmentation and promotional activities.