Ontela PicDeck (B): Customer Segmentation, Targeting, and Positioning Group B1 0082/57 0084/57 0085/57 0086/57 0087/57 0088/57 0125/57 0135/57 DP/07/20 ABHISHEK PANDA ADITYA SURESH WADEKAR AMARJEET KUMAR AMIRTHAVARSHINI L J ANKIT VIJAYNARAYAN MISHRA ANSHUMAN MAJHI PRABAL GUPTA SAMRIDHI JAKHAR SHYAM PRASAD GHOSH Important Variables Most Useful variables ● Q1 - This question talks about the technology aptitude a segment has. Also signifies which segments have issue while uploading a photo ● Q11 - Early adopters would be preferred so that the picdeck creates a customer base early on who are tech enthusiast ● Q13 - This question talks about the willingness to pay which will eventually lead to revenues ● Q6, Q7, Q8, Q9 – These questions are directly related to the significant features of the offered product. They talk about the value each segment prefers and hence can be used in targeting different segments Least Useful variables ● Q3, Q5 - Services offered by Picdeck are related to the transferring of the pictures and not pertaining to the quality of pictures. These questions only talk about the quality factor which is not relevant to Picdeck ● Q12 - All the 6 clusters have a similar answer for this and this has less differentiability. 2 Profiling Clusters *Reverse of Q1 3 Customer Lifetime Value Retention Transactions Profitability C1. Professionals - Ind. MED MED HIGH C2. Professionals - Family HIGH HIGH VERY HIGH C3. Teenagers LOW VERY HIGH LOW C4. Young Adults MED HIGH MED C5. Homemakers/Part-Time HIGH MED MED C6. Middle Aged/Elderly HIGH LOW MED RESULT 4 Cluster Evaluation WTP for the service C5 C3 C2 C1 C4 C6 Pay own bill (ATP) The upper quadrant represents the clusters having higher willingness as well as ability to pay for the services. Based on the population size, C1 i.e. working professionals (individuals) seems to be the most lucrative among all 6. Also, they value services such as email and social media, which translates to higher propensity for features catering to email and facebook, thus providing additional revenue streams. Among C2 (Professionals with family) and C5 (home-makers), C2 provides higher opportunity for cross functional service revenue as compared to C5, though both the segments have nearly equivalent segment sizes. C1 i.e. individual working professionals would be the primary target cluster, followed by C2, as the synergies among the clusters would result in lower cost to acquire and attract. 5 Survey Questionnaire Asking the right questions to the right audience is essential to obtain reliable data which in turn will have a large impact on management decisions. The major factors that can affect the questions asked in a survey are: ➔ The ultimate objective of what we are looking to find out or achieve ➔ How the surveyor plans to use the information collected in drawing conclusions ➔ Any preconceived notion that one might hold about the target audience ➔ Past experience of the surveyor, relevant to the current situation ➔ The surveyor’s opinion of what are the important factors for which they need input ➔ The user personas defined by the surveyor into which they try to fit in the respondents, which in turn can affect further questions Demographics & Media Use Information Being a technological product, age distribution would play a vital role in determining the adoption rate of the service. C3 having a greater distribution of age < 25, indicates that is a youth driven sample. Similarly, c6 cluster represents a older population as per its distribution. Thus, age related variables can be used as a proxy for tech savviness and adoption of new technology. Magazine preferences indicates the behavioral traits of the clusters, which could be used to create personas. Variability of the preferences across the cluster would be essential to consider it as an essential piece of information. For example, women magazine preference is constant throughout the clusters, which makes it redundant. 7 Demographics & Media Use Information Since the service is highly dependent on internet for transfer of pictures, internet usage across the clusters is essential to determine the propensity of users. C1, C3 and C4 are high on internet usage while C2, C5 and C6 are on the lower side, which makes them less attractive as clusters. Preference across plans (data and message) would be essential for the carriers to craft the services as per the target segments. There has been a shift across from data plan to message plan as we move from C1 to C6. 8 Persona development before quantitative cluster analysis Pros ● Persona development provides in-depth understanding of a consumer ● As questions are unstructured in persona development process, we can customize the questions according to the interview which results in better insights about the consumers and their problems ● Persona development helps us interpret and understand social interactions ● Persona development also helps us understand why a certain phenomenon occurs Cons ● As persona development findings are interpreted from small no. of sample so, it cannot be applied to larger populations ● In persona development, it is more difficult to generate information that is definitively factual ● Quantitative cluster analysis strips all issues down to facts and figures, all ambiguity of language, interpretation, and emotion is removed. ● If persona development is followed by quantitative analysis, it might lead to confirmation bias as we try to fit data into already made personas. 9