Sadmentation: The Pitfalls of Segmentation sans Operationalisation
In the world of marketing and customer experience, segmentation is often hailed as the key to unlocking tailored strategies that resonate deeply with target audiences. The promise of finely tuned segmentation models—crafted with precision and built on sophisticated data analytics—is alluring. Perhaps even more alluring is the promise of solid commercial upside off the back of such work. However, many businesses fall into the trap of "sadmentation," where a perfectly crafted segmentation model becomes a burden rather than a boon because it fails to deliver impact. This happens when the model is created without considering how it will be operationalised within the business.
The grim reality of sadmentation
Imagine dedicating countless hours to developing a segmentation model that meticulously categorises your customer base into actionable segments, perfect personas and cleverly crafted archetypes. The data is robust, the insights are sharp, and the potential seems limitless. But as you move from theory to practice, you hit a wall. The model, however perfect on paper, cannot be integrated into the day-to-day activities of your business. As a result, the segmentation, instead of driving growth and innovation, languishes in reports, spreadsheets and presentations, unused and unloved.
This is sadmentation—a wasted opportunity where the gap between segmentation and its implementation leads to missed potential, frustrated teams, and unachieved goals.
Five principles to ensure actionable segmentation
To prevent sadmentation and ensure your segmentation efforts translate into real-world impact, consider these five principles during the build:
1. Start with the end in mind: align segmentation with business goals
Before diving into data analysis, ensure that the segmentation model aligns with your broader business objectives. What are you trying to achieve—customer retention, increased sales, improved customer experience? The segmentation should be a tool to directly support these goals. Engage stakeholders from various departments to understand how the model will be used and what outcomes are expected.
2. Cross-functional collaboration: involve all relevant teams
Segmentation shouldn’t be created in a vacuum. Involve marketing, sales, customer experience, operations, and even IT from the beginning. Each team will have insights into how the model can be applied and the potential challenges in implementation. This collaborative approach ensures that the model is not only insightful but also practical and actionable.
3. Operational feasibility: ensure data accessibility and usability
A segmentation model is only as good as its data sources. Ensure that the data required for ongoing segmentation is accessible and usable by those who need it. Consider the systems and tools available in your business—are they capable of handling the data complexity? If the data is difficult to access or use, the model will struggle to be implemented effectively.
4. Pilot and iterate: test the segmentation before full rollout
Before fully integrating the segmentation model into your business processes, run pilot tests. Choose a specific segment and implement targeted strategies based on the model. Monitor the outcomes and gather feedback from the teams involved. Use this as an opportunity to refine the model, making adjustments based on real-world application before a full rollout.
5. Clear communication and training: empower teams to act
Once the segmentation model is ready, ensure that all relevant teams understand how to use it. Clear communication and training are crucial to empowering your teams to act on the insights. Provide examples, use cases, and step-by-step guides on how the segmentation can inform decisions. The more confident your teams are in using the model, the more likely it will be implemented successfully.
What’s the upshot?
Avoiding sadmentation requires more than just creating a segmentation model; it requires thinking through how it will be used, by whom, and for what purpose. As former business and brand leaders, Wingmaven understands that the true power of segmentation lies not in the model itself but in its ability to drive meaningful change within your organisation. What’s more, we have experience making this happen IRL. If you need some guidance on how to turn your ‘sadmentation’ story into a tale of joy, drop us a line.
