Customer Framework Development

A key component to any strategic marketing, branding or innovation project is market segmentation. EquiBrand uses the term “customer framework” vs. “customer segmentation” to reflect a more robust, foundational set of deliverables

A customer framework is a way of looking at a particular product category by identifying distinct segments of customers whose motivations and behavior will fundamentally differ from each other
It flows from the perspective that all customers are not alike – and individual customer groups will seek out different brands for different reasons and for different need states
A customer framework is not just a piece of research – it informs how a company approaches its market(s) and structures brand and business development

The customer framework can either be hypothesized qualitatively or developed through a quantified segmentation study. The diagram on the right illustrates information obtained through framework development:

Goal

To successfully design and execute the customer segmentation research, determine the optimal segmentation solution and prepare the comprehensive customer framework

Major Activities

Develop research design and survey, working closely with the client team. An online survey is typically recommended, as a proven, cost-effective method for segmentation research. Potential areas of study: attitudes/motivations, unmet needs, product usage and purchase behavior, competitive brand imagery, and demographics
Finalize, program and field questionnaire, including client approval
Finalize segmentation iterations, and hold work session to review and select a segment solution
Thoroughly analyze data and develop customer framework, including marketing target selection criteria and recommendations
Hold work session(s) to review segmentation analysis and confirm marketing target(s)

Key Deliverables

Agreed-upon research design and research instrument
Segmentation solutions and complete data tabs
Quantified segmentation framework, integrating attitudes and behaviors, key issues and implications, across the following: 1) Deep understanding of client brand imagery vs. competitors; 2) Functional benefits and brand personality; gap vs. ideal; and 3) A definition of portfolio management opportunities vs. a collection of brands and products designed to maximize incremental volume, minimize cannibalization
Potential need gaps and “white space” opportunities for future growth
Client-confirmed targets as an input to qualitative research (i.e., recruiting specs, etc.)
Identification of 4 – 5 high potential for positioning areas for key brand(s)

Key outputs of this step are used as an input into concept development and optimization.