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Segmentation

Find the groups inside your market

Not everyone in a market wants the same thing. Segmentation groups people by what they need and how they behave, sizes each group, and gives you a simple way to spot them again.

  • ModelNeeds-based segmentation
  • You bringThe decisions the segments must drive
  • You getSized, named groups and a short way to find them again
ModelNeeds-based segmentation

needs+behavior→groups

People are grouped on what they need and how they behave, then described by who they are.

The problem

“Everyone” is not a target audience

One message or one product rarely fits a whole market. Without segments, teams aim at an average customer who does not exist, and the budget is spread thin. Segmentation finds the few groups worth winning, shows what each one wants, and tells you how big and how valuable each group is. Then you can choose where to focus, and what it will take to win there.

Works out for a goalWorks out to unwindTrains to a planTrains when it fitsThe average customerNobody in the data is here
Every dot is a person. Aim at the average and you aim at an empty space between four real groups.

Play with the model

Four groups inside one market

Change the number of groups to see why four was kept, then open a group to meet the people in it.

How many groups?

Same group on a re-run: 89%

Kept: the four groups hold up on a re-run, differ clearly on what they need, and each is big enough to profile.

Works out for a goalWorks out to unwindTrains to a planTrains when it fitsPlannersBusy minimalistsUnwindersGoal chasersRoutine buildersBusy minimalistsUnwindersGoal chasersRoutine buildersBusy minimalistsOutdoor unwindersHome unwinders
Goal chasers24% of people 34% of spending

Training for a set goal: a race, a weight, a personal best.

What they want most

  • Plans built around a goal82%
  • Progress they can measure76%
  • Harder sessions over time61%
Habits
Train four or more times a week, mostly to a plan.
Where to reach them
Running and fitness podcasts, smartwatch apps, race sign-ups.

In their words: a video answer, transcribed

“I have a half marathon in May, so every session has to move me toward it.”

TranscribedRelevance 0.94

Routine builders31% of people 29% of spending

Keeping a steady habit for their health.

What they want most

  • A routine that fits the week79%
  • Reminders that keep them going64%
  • Variety so it never gets dull58%
Habits
Three sessions a week, on the same days, at the same time.
Where to reach them
Health apps, email newsletters, video streaming at home.

In their words: a video answer, transcribed

“Monday, Wednesday, Friday before work. If I skip one, the whole week feels off.”

TranscribedRelevance 0.91

Busy minimalists27% of people 22% of spending

Fitting short workouts into full days.

What they want most

  • Sessions under 20 minutes84%
  • No equipment needed71%
  • Start without planning66%
Habits
Short sessions whenever a gap opens up in the day.
Where to reach them
Social video, app stores, work and parenting podcasts.

In their words: a video answer, transcribed

“If it takes longer than fifteen minutes I will not do it, so it has to be quick and need nothing.”

TranscribedRelevance 0.89

Unwinders18% of people 15% of spending

Exercising mainly to switch off and feel calm.

What they want most

  • Calm, low-pressure sessions77%
  • Yoga and stretching69%
  • No scores or streaks52%
Habits
Evening sessions, often yoga or a long walk.
Where to reach them
Wellbeing apps, music streaming, social video.

In their words: a video answer, transcribed

“It is my half hour to switch off. I do not want a coach shouting numbers at me.”

TranscribedRelevance 0.87

A typing tool, in three questions

Answer to see which group you would fall in.

Why do you mostly work out?
How do you plan your sessions?
How long is a usual session?

Answer all three to see your group.

Drawn on the worked example further down: Example: who a home-fitness app should serve

  1. 01

    Demographics describe the segments. They are not used to form them.

  2. 02

    Segments that vanish on a re-run are not segments.

  3. 03

    Each segment needs enough people to profile: usually 1,000 to 2,000 people in total.

In CatalyseAI today

In CatalyseAI today, audience groups can be saved to your account and matched to other surveys, every report compares up to five groups, and every video answer is transcribed and searchable.

12categories in the targeting library
95profile questions to describe each group
5audience groups compared side by side

How the model works

How a segmentation is built

Step 01 / 05

Start from the decisions

Targeting, new products or messaging? We shape the questionnaire around the decisions the segments need to drive, because that decides what people are grouped on.

TargetingWho to aim at
New productsWhat to build for whom
MessagingWhat to say to each group
Step 02 / 05

Survey a large sample

One survey covers needs, attitudes, behavior, spending and media. Each segment needs enough people to be profiled, so the sample is larger than for most studies.

One survey covers

GoalsRoutinesEquipmentSpendingApps they useMedia

A larger sample than most studiesEach segment needs enough people to be profiled

Step 03 / 05

Find the groups

Statistical clustering suggests several possible solutions. We compare them and keep the one whose groups are stable, clearly different and make sense for your business.

Three groupsSame group on a re-run: 92%
Four groupsSame group on a re-run: 89%
Five groupsSame group on a re-run: 61%

Several solutions compared: the one kept is stable, clearly different and makes sense for the business

Step 04 / 05

Size, profile and name them

Each segment gets its size, its value, its needs, habits and media, written up as a portrait your team will remember.

Routine builders

Share of people31%

Share of spending29%

Keeping a steady habit for their health.

Step 05 / 05

Make them easy to find again

A short set of questions assigns anyone to a segment, so the segments can be used in later studies, in a CRM or in a sign-up form.

Three questions, one group

  1. Why do you mostly work out?
  2. How do you plan your sessions?
  3. How long is a usual session?

Busy minimalists

The deliverables

What you get

Every CatalyseAI report downloads in these formats.

  • PowerPoint deck
  • Excel workbook
  • CSV
  • Chart images (PNG)
  1. D1

    Segment sizes and value

    How many people fall in each group and what share of category spending each one accounts for.

  2. D2

    Profiles

    Needs, attitudes, behavior and media for each segment, compared side by side.

  3. D3

    Named portraits

    One page per segment, with a name and a short description your team can remember.

  4. D4

    Video portraits (optional)

    Short video answers from people in each segment, transcribed, so the groups have faces and voices.

  5. D5

    Typing tool

    A short questionnaire that places new people into the right segment.

  6. D6

    Targeting recommendation

    Which segments to focus on and why, written from the evidence.

  7. D7

    Data file with segment codes

    Every respondent tagged with a segment, in Excel and CSV.

The terms, in plain words

What people are grouped on, and described by

Needs
What people want from the category, rated or ranked.
Attitudes
Beliefs about the category, the brands in it, and themselves as buyers.
Behavior
How often they buy, where, and which brands.
Value
What they spend, so each segment's share of the money is clear.
Media and channels
Where each group can be reached.
Demographics
Age, gender, region and income, used to describe the segments rather than to form them.

Worked example

Example: who a home-fitness app should serve

A US home-fitness brand wants to know which buyers to aim a new app at. It surveys a large sample of US adults who exercise at home about their goals, routines, equipment, spending and the apps they already use. In this example four groups emerge, from people training for a set goal to people who exercise mainly to unwind. Each group gets a size, a share of spending and a portrait, plus a few questions the brand can add to its sign-up form to tell new users apart.

FAQ

Questions, answered

How many people do we need?

Usually 1,000 to 2,000, so that each segment is large enough to profile. The right number depends on how many segments you expect and how narrow your market is.

How long does a segmentation take?

Longer than most studies, because the design and the analysis need care. We agree a timeline with you before we start.

How do you know the segments are real?

We look for groups that hold up when the analysis is run again, that differ clearly on what matters, and that your team can find and reach. Segments that vanish on a re-run are not segments.

Can we use the segments in later surveys?

Yes. Ask the same typing questions in a later CatalyseAI study, save the segment rules to your account, and every chart can be split by segment.

Should we run a usage and attitude study first?

If you know little about the category, it helps. A usage and attitude study describes the market, and segmentation finds the groups inside it. Sometimes one survey can do both jobs.

Find out which groups are worth winning

Tell us the decision the segments need to support. We will propose what to group people on and how many people to ask.

Nearest office: Orlando, FL (corporate office)