MMR Strategy Group’s Choice-Based Methodology for Market Segmentation
MMR Strategy Group often uses a Choice-Based Segmentation (CBS) methodology for market segmentation. The CBS methodology focuses on the choices that customers make about which products and services to purchase, and the choices that companies make in setting strategies to serve customers and attract prospects. The CBS methodology for market segmentation starts by understanding the client’s specific needs and situations. It uses market segmentation to identify key customer segments of interest, and includes strategic planning to target the market segments with greatest potential. By conducting a survey that includes a conjoint-based choice (CBC) approach, the CBS methodology presents customers with a series of choices that force them to make trade-offs between different levels of product features, service levels, or other attributes. Through data analysis, we profile each respondent according to the value they place on each attribute level. Through advanced statistical analysis techniques, we then define customer segments by sorting respondents into groups with similar attribute preferences and choice patterns. Finally, we profile each customer segment according to other characteristics, such as other behavioral, attitudinal, and demographic traits.