Custom Research Solutions
Marketing to the Right Customers Can Make All the Difference
Targeting customers who are not interested in your message can be very costly, resulting in low ROI. While scientists may exhibit some uniform product and service preferences, the way they prefer to discover and utilize these offerings varies by market segment, age, years of research experience, job position and gender. Learning which segments of your customer base are most receptive, and least receptive, to your marketing will increase the effectiveness of your new and existing initiatives.
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Case Study: Which type of lab is most likely to purchase new instrumentation?
A leading life science supplier was introducing new instrumentation that
would allow individual scientists and their labs to analyze their own
results, in place of outsourcing to a core lab. The client needed to
understand which lab types would be most receptive to purchasing this new
system based upon their market segment, throughput, current practices, and
lab budget. BioInformatics determined that the best tool to meet these
requirements would be a Market Segmentation. Customers are segmented using
a CHAID analysis, a sophisticated methodology based on responses to a
quantitative survey that include demographic and company-specific
variables. How did the marketer find which customer segments were most
likely to purchase their new system?
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CHAID Analysis is a powerful tool that utilizes statistical techniques (rather than conventional wisdom) to create segments based upon similar characteristics of scientists. CHAID allows suppliers to identify the key segments in identifiable markets. A survey that asks researchers questions based on the following variables (i.e., demographic, firmographic, behavioral or attitudinal) is fielded.
Target variables:
Familiarity
Likelihood to Defect
Likelihood to Purchase
Loyalty
Product/supplier Preferences
Satisfaction
and more...
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Key driver variables:
Age
Budget
Current Equipment/Practices
Current Suppliers
Gender
Job Position
Lab Size
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Market Segment
Organization Size
Region
Research Area
Throughput
Years of Experience
and more...
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These market segments are discerned using powerful algorithms that act upon variables to generate the survey driver variable (e.g. lab size) associated with the target variable (e.g. likelihood to purchase). The results of this analysis are discrete groups with statistically significant differences between them. (Please see diagram.) Results from CHAID analyses are presented in multiple formats, including decision trees, gains charts, and textual descriptions of findings. Decision trees appear as flowcharts, with the target variable at the top and the subsequent combinations of predictor variables scaled downward, as pictured below.
Click to enlarge
In this case, CHAID analysis identified the segments most receptive to the new product: academic labs with 15 years or more of research experience that were dependent on a core lab. The analysis also determined which customer segment was least receptive, and how large the segments were compared to the total potential customer population.
Through CHAID Analysis, BioInformatics delivered value to the client by pinpointing the market segments in which concentrated efforts would yield maximum revenue and marketing efficiency. The client could confidently focus on the segments most likely to purchase, allocating its company resources wisely.
Segmenting your customer base accurately can significantly decrease marketing costs and boost the earning potential of your campaign. Perform a CHAID analysis of your customer base and discover new, profitable niches to target in your marketing strategy.
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| To get more information on BioInformatics' Customer Segmentation or to discuss further details of your potential study, please contact us at 703.778.3080 ext. 12 surveys@gene2drug.com. |
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