Slides from a brief talk on segmentation as it relates (or rather doesn't relate) to product and service innovation.
The talk was used to test some thinking amongst a friendly audience of strategists and planners down in Brighton, at a networking event hosted by Brilliant Noise.
I attended a course run by Russell Davies
Now I always start with this image
It’s not always appropriate
This is the company I work for as a Creative Strategist
It’s a product and service innovation company
It’s a little daunting talking to a big group of planners like this, I don’t really think of myself as a ‘proper’ planner,
I come from a design and UX background and sort of fell in to strategy through a combination of being adaptable and asking awkward questions like “Who would want this?” and “remind me why we’re doing this again?”
But don’t hire me if what you’re looking for is a planner, I’m rubbish at that.
Digby asked me for a talk title weeks ago
I had something in mind but I wasn’t sure exactly, so I came up with the title first and decided to work from there
So this is a bit of an experiment, hopefully with a friendly crowd, aimed to help me test out some thinking and hopefully spark debate
Ok, so my starting point is segmentation – and more specifically the inadequacy of segmentation when it comes to the kind of work I get involved in
And my frustration stems from a conversation with clients that tends to go something like…
The problem for me is that I find segmentation to be a bit like benign, annodyne zombies – sort of detached from the world and representative of nothing really interesting
And every company seems to have it’s own version but they always end up looking the same and generally focused on middle market, ‘affluents’ or ‘aspirationals’
This is nothing new I’ve had to work with this guff for over a decade now
But it was only recently that I started to think about what kind of impact this narrow, inoffensive, uninspiring, making generic of our fellow man might be having
I had to conduct some research in to approaches towards product and service design for older adults that confirmed something that intuitively I think I already knew i.e. segmentation of the over 50s (which incidentally is the only growing market demographic) is woefully inadequate when it comes to helping us understand the diversity inherent in this group, largely because of an over reliance on chronological age as an indicator of interests and behaviours
And I think it’s this point about diversity that is key, and the frequent lack of noticeable diversity in a lot of the segmentation that I see that bothers me.
Much of it appears to be little more than caricatures of middle England types at different lifestages, with varying degrees of solvency, or propensity to shop at Waitrose or Lidl
And this might work fine for people trying to plan advertising, but I just don’t feel like it helps us to come up with the type of insight that helps us to innovate interesting new products and services.
And I think that’s because they lack any edge (YES! That’s what he’s doing there!) Or to milk the musical reference points this rather sanitised version of humanity served up by segmentation strips out the mis-shapes and the misfits, raised on a diet of broken biscuits, that make things interesting
And it seems to me that the edges are where interesting things happen and are adopted
“Diffusion of innovation theory” Seth Godin talks about this
This is not an attack on marketeers and my own people have their variation on segments: personas.
This is an actual example of how some UX people think and it’s just persona development by numbers http://www.ux-lady.com/diy-user-personas/
See also Dan Saffer ‘How to lie with design thinking’
Now I’ve made up my fair share of personas in my time, and I think this has been justifiable more often than not.
But If we’re not careful our made-up personas become about as useful as this…
They need to be fed by proper research and observation
See also Dan Saffer ‘How to lie with design thinking’
So anyway, I’ve spent enough time waffling about what I think the problem is
What should I, we, do about it
Film, about 23mins in, Dr Louis Leakey ‘Dear Ms Fossey, surely you didn’t expect the poor beggars to come out of the jungle and line-up just so as you could count them?’ ‘I know you’re not an imbecile, but sometimes it does help to be reminded of the elementary steps that one also overlooks in situations such as this’
So what are the elementary steps?
McCracken’s basic assertion: businesses tend to are very good at recruiting people to the C suite who are good at taking care of business, but very few, if any, have culture covered and this leaves them susceptible to rapid fluctuations in the interests and desires of consumers.
Essentially this is the ‘Only constant is change’
We, and I include myself, all need to look or the outliers in the data
Tesco was researching online ordering when they noticed some odd behaviour in Glasgow – massive orders being regularly delivered to a single flat in a block of flats in Glasgow
Further investigation revealed one entrepreneurial/community minded individual who was ordering on behalf of multiple shoppers in return for their clubcard points
Tesco, rather than try to shut this down, suggested ways that using their online list facility to create discreet order ‘bundles’ would help the individual with subsequent distribution
Tesco just knows mums (and dads) it thinks about where they hang out and tries to contextualise its service offering
Every little helps
Tesco is like the velociraptor in Jurassic park, always testing the fence
Go gonzo
You learn things and see things you wouldn’t do otherwise
E.g. about the things people leave behind and the things they return and how they return them
Focus less on solutions and more on learning
There is a massive emphasis on execution and ‘perfecting’ some kind of big idea
But if you focus on learning and trying to deliver long term value good enough is well, good enough