Customer Segments

• • Market Segment vs Personas

  • Promoting a product or service to a persona

  • Creating a persona of a company

In this module, we will be covering one of the most important aspects of the marketing plan: Finding and understanding our Customer. No business can be successful without customers or businesses to purchase their product or service. We will cover how to create personas to create the right Product Market Fit to get our product out to market.

Vocab

• Revenue

• Market Segmentation

• Market Segment

• Target Market

• Persona

• Vehicle (Method of connecting)

• Word of Mouth

• Differentiation

Watch the following videos and answer the questions to prepare for class discussion, online discussion (FB Group), and for your quiz. Each of the videos are between one to three minutes in length. While they may be short, it will take you some time to get through all of the videos and answer the questions.

All titles listed in GOLD represent the videos you will need to watch for the first quarter. It is recommended to watch and answer the questions prior to class to help facilitate instruction and develop a deeper understanding. You may choose to watch all of the videos listed below or the entire library in Udacity. See the course schedule for instruction dates.

Videos to Watch

Udacity: Lesson 6.1 – Product Market Fit

Think about it: Product Market Fit

• Product Market Fit between what we are building and who wants to buy it

• Looking at Problems or Needs, Gains, and Pains to create our Persona/Archetype

• Learn to connect our value proposition to what we learn about customers

Udacity: Lesson 6.2 – Jobs to be Done

• See the 5 F's of Customer Segments (beneath video)

Udacity: Lesson 6.3 – Rank and Day in the Life

Think about it: Jobs to be Done/Rank and Day in the Life

• How does this process help us to save money?

• What do we get from talking with customers?

• Why do we rank the jobs (features) according to significance?

• How is ranking a job similar to the minimum viable product?

• Why does it matter how often (frequency) it occurs?

• Why do we need to understand the ‘Day in the Life’ of a customer? To know where our product fits within their daily life

Udacity: Lesson 6.4 – Gains

Think about it: Gains

• Benefits the customer expects, desires, or is surprised by

• What would make them happy? Money, effort, time

• What outcomes do they expect and what would go beyond their expectations? Quality, more of, less of

• What would make your customers job or life easier? More service, lower cost of ownership, flatter learning curve

• What would increase the likelihood of adopting a solution? Lower cost, lower risk, more fun, better quality

Udacity: Lesson 6.5 – Pains

Think about it: Pains

• Undesired costs and situations, risks, and negative emotions we can solve

• What do your customers find too costly? Time, cost

• How are current solutions under performing? Lack of features, performing, malfunctioning

• What are the main difficulties and challenges?

• Whats keeping your customer awake at night? Big issues, concerns and worries

• What are barriers are keeping customers from adopting? Upfront costs, resistance to change, learning curve

• What makes your customers fear? Financial, social, technical

Udacity: Lesson 6.6 – Customer Archetype/Persona

Customer Segments vs Persona

Customer segments are different groups of people that your business will serve. Most companies have more than one customer segment that they target (target market) in order to reach different types of customers.

• • Demographic Segmentation – based on gender, age, occupation, marital status, income, etc.

  • Geographic Segmentation – based on country, state, or city of residence. Local businesses may even segment by specific towns or counties.

  • Technographic Segmentation – based on preferred technologies, software, and mobile devices.

  • Psychographic Segmentation – based on personal attitudes, values, interests, or personality traits.

  • Behavioral Segmentation – based on actions or inaction, spending/consumption habits, feature use, session frequency, browsing history, average order value, etc.

A persona is simply a relatable description of each customer type you serve. They try to highlight your customers’ motivations, their problems and capture the “essence” of who they are. If you can, create one or more persona for each segment you serve.

One really important point to get across here is that "customers don’t exist for you, but rather you exist to serve your customers."

Many businesses will serve just one customer segment, but not all. For example, Google serves two customer segments, people performing searches as well as advertisers.

If you think about breaking down the advertiser customer segment into personas, then there are many different types of advertisers you might identify. For example, Fortune 500 companies such as Nike with massive advertising budgets might be one persona, whereas small one-man businesses might form another.

Remember, customers segments or personas can be individual people or businesses (B2B - business to business).

Think About It - Market segmentation and personas

• • Market segment have two things in common: 1) common set of needs through a product 2) they talk to each other. What are two important outcomes of market segments talking to one another?

  • List two or more common issues with marketing to consumers.

  • How should you define your segments?

Customer Segments or Personas? Where do we start?

So do we start with customer segments or personas?

Think About It - Why we start with personas

• • Who are the persona that we first target?

  • What does he mean by "just start a fire"?

  • What are six characteristics of a target customer? [hint: 1) one of them is the first question you answered above 2) he does not count correctly so listen carefully]

Persona Examples

Watch this video to get an idea of how to develop a persona. Here are a few things to consider when determining your customer segments and developing your persona:

• • Who are we solving the problem for?

  • Who are the people that will value my value proposition?

  • Are they another business?

  • If so, what are the characteristics of those businesses?

  • Or, are they other people?

  • Does my value proposition appeal to men/women or both?

  • Does it appeal to young adults aged 20 to 30 or teenagers?

  • What are the characteristics of the people who are looking for my value proposition?

Practice: Persona Identification

• • Download/view the Persona file in the resources section. For each persona, indicate what product or service you would promote.

  • Provide a JEE/ACE statement to support your product or service for each persona.

Udacity: Lesson 6.7 – JerseySquare Archetype

Udacity: Lesson 6.8 – Customers in Context

Think about it: Value Proposition

• Why is understanding ‘who’s the customers in context’ important? To know how we need to appeal to various people in order to get a purchase.

Udacity: Lesson 6.9 – Signals and Experiments

Think about it: Customers in Context

• Why is the number of tests you do different between ‘business to business’ vs ‘web/mobile’? b2b generate more sales at once

• Why do you not want to rely solely on surveys? People lie on surveys

Udacity: Lesson 6.11 – 2 Sided Market

Udacity: Lesson 6.13 – Multiple Customer Segments

Think about it: Multiple Customer Segments

• How are we able to use search engines like Google for free?

• Why is having multiple customer segments important?

Udacity: Lesson 6.14 – Ecoli Example

Think about it: Ecoli Example

• Great example of how a BMC evolves over time, the importance of being specific, and ideal vs actual plan

Watch: Lesson 6.15 –Market Types Introduction

• • Four types of Markets: Existing Market, Resegmented Market, New Market, Clone Market

  • How would they differ from on another?

Watch: Lesson 6.16 – Existing Market

Watch: Lesson 6.21 – Existing Market Extended

Watch: Lesson 6.17 – Resegmented Market

Watch: Lesson 6.22 – Resegmented Market Extended

Watch: Lesson 6.18 – New Market

Watch: Lesson 6.23 – New Market Extended

Watch: Lesson 6.19 – Clone Market

Watch: Lesson 6.24 – Clone Market Extended

Udacity: Lesson 6.27 – JerseySquare Customer Segments

Udacity: Lesson 6.28 – Examples

Complete and bring to class on scheduled due dates. You may print your work in our classroom prior to coming to class. Assignments can be submitted early, but late assignments will not be graded. Early or on time submissions may be returned for corrections in order to receive points, meet minimal requirements, or to improve your grade. Late assignments can be submitted for correction and to complete modules. Consideration for grade is given to those who complete all assignments.

All activities can be found above or in the Vocab document in the Resource section.

Using any one or combination of the fillable Persona Charts (Resources), choose one from each of the three rows to complete this assignment. For example, you could choose Victoria Secret, K's Bento, and Spotify.

For one of your selections, create two different personas for the company. You will have a total of four completed personas for this assignment (eg. Row 1, Row 2, Row 3, Row 3).

• • https://uxplanet.org/creating-free-sketch-templates-user-personas-journey-maps-541df39d3f1b