A Three-Stage Process For Segmenting Customers For Rapid Business Growth


Fuelling rapid growth comes from gaining sustainable competitive advantage and differentiation - which will come from looking for ‘response bases’ to identify uncovered (unsatisfied) market segments. Here is a three-stage process for segmenting customers for rapid business growth:

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What are Response Bases?

Response Bases are customer beliefs, attitudes, preferences, aspirations and resultant perceptions and behaviours. First you want to unearth a key ‘preference’ or significant ‘attitude’ that is very important to a sizeable group of customers in a product category.

Incorporating that proprietary knowledge into a tailored marketing & sales strategy and programmes leads to better, more cost effective buying responses (and reduced buyer resistance) from that target market.

It also underpins a sustainable competitive advantage.

Recommended reading: How To Do a Market Segmentation Strategy For Your Startup

Unearthing the 'Response Base' information

Unearthing response base information and then using it to group customers according to their common response and identification bases involves two stages.

Stage 1 – Primary qualitative market research

Primary qualitative market research, using Depth Interviews and Focus Groups is done to unearth the ‘response bases’ information that identifies an uncovered (unsatisfied) market segment. These response bases often emerge from three specific areas of enquiry:

  1. Customer needs that are not met (or unsatisfactorily met) by other competitors in the current market
  2. Desired customer buying process, decision-making process requirements and brand loyalty propensity
  3. Response and behaviour in relation to marketing communications and environment.

Recommended reading: How To Get Customer Feedback That You Can Take Action On

Stage 2 - Quantitative market research

The potential Response /Identification Basis questions and variables to be used in the quantitative segmentation research will emerge from the Qualitative Depth and Focus Group research conducted.

A base-line segmentation study will be done to aggregate groups of buyers who respond similarly to a set of potential Response and Identification Basis Questions and Descriptor/Attitude Questions.

The results of this quantitative base-line segmentation research are then analysed to identify important unmet needs in attractive customer market segments for the business.

Stage 3 - Incorporate the findings into your Marketing & Sales programmes

The response base information is incorporated into tailored (right product, right message, right way, right time) marketing and sales programmes for those customer segments.

This then becomes the growth engine for the business.

Over to you now. Have you identified your response bases and how have you gone about using this information for a business growth strategy? Tell us in the comments below. 


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Wednesday, 11 December 2019
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