What is the most common misconception about market segmentation? Come backstage with Research Rockstar Instructor Jeff McKenna to find out!
Meet Jeff McKenna, industry veteran, and the founder of MCK Insights.
Jeff provides a deep background in the design and delivery of market research projects, particularly in the area of data processing, advanced methodologies and data reporting. He has years of experience in new product development, segmentation, brand development, customer satisfaction and tracking projects.
Jeff has delivered strategic and actionable solutions to clients at all levels in client organizations (from market researchers to CEOs), including complex customer experience, segmentation, brand tracking and integrated EFM programs. He has designed and delivered CX programs for several Fortune 500 companies, incorporating customer feedback with several other internal data sources. He has designed and implemented reporting platforms used by thousands of service and marketing managers in multiple industries. More than simply delivering data, each solution enables users to prioritize action planning and estimate financial value associated with different performance levels. Jeff has a BA in Sociology/Anthropology from Swarthmore College and an MBA from The George Washington University.
Jeff was recently interviewed by Melissa Donovan.
MD: Hi Jeff, thank you for taking the time out for this interview. Let’s go take it back from the beginning. What was it that got you interested in market research?
JM: My career had quite a few twists and turns before I got into market research. As I look back though, I seem to have been attracted to data and finding patterns and relationships in the numbers. In fact, I worked as the head statistician for my college basketball team, so this never should’ve come as a surprise to me.
Another aspect of the job that attracted me is the importance of evidence-based decision making. Collecting reliable and valid data is the foundation of sound decisions (whether in business, science or other parts of life), and I always enjoyed providing clear insights for smart decisions.
MD: Are there any common misconceptions about market segmentation that you would like to correct? Pick just one!
JM: The misconception that I most frequently confront among marketers and consultants is that after collecting a robust sample for a thorough survey the analyst can throw all of the data into a model and generates a single “right” solution. “Run the analysis and tell us the best solution” is a rather common assumption, but market segmentation never has simple analytical results. We must always have trade-offs throughout the entire process from defining the sample, writing the questionnaire, and selecting the optimal solution that trades off the “analytically ideal” with the practical application of the results.
MD: How is segmentation for B2B different than for consumer marketing?
JM: Some areas where I find differences are:
- In database scoring. B2B always includes an algorithm that defines segment membership for customers and prospects within an organization’s database. While this may occur in consumer marketing, B2B situations have far more robust data about customers and prospects to enable the scoring.
- We usually find fewer segments in a B2B segmentation solutions (compared to consumer segmentation solutions). There are several reasons for this to be the case. To name a few: smaller populations, less variance within B2B markets, and the challenge that comes from marketing to a large set of segments.
- The lifecycle of B2B segmentations are typically longer, such as 3-5 years, compared with consumer segmentations, which are 1-3 years. For one reason, the buying cycle for B2B requires a solution to last longer. Additionally, consumer markets can change rapidly with new technology, purchase channels and marketing—so much so that a segmentation solution can quickly become obsolete.
MD: What is something interesting about you that most people may not know?
JM: I’m a licensed (though lapsed) hairdresser. I still cut and color for my wife and kids. I’m actually having a lot of fun with the bright semi-permanent colors that are popular these days, like pinks, blues and purples. (NOT for me, but for my teenage kids ????).
Interested in taking a class with Jeff and gaining some new skills to advance your market research career? Research Rockstar is offering Market Segmentation on September 23 from 11am-1pm EST.
The on-demand version of this course is available to take anytime. Check it out here.
If you are already a Research Rockstar member, this course is in your Training Portal. Not yet a member? We have options.
