Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

Over half of UK marketers believe consumer segmentation is an outdated and oversimplified marketing method 

by October 3, 2023
October 3, 2023
Over half of UK marketers believe consumer segmentation is an outdated and oversimplified marketing method 

Over sixty per cent of UK marketers believe consumer segmentation – the categorisation of customers based on shared traits – is an outdated method of marketing, with 63% considering it totally unfit for purpose.

That’s according to new research from enterprise customer data platform, Treasure Data. This is despite almost all (96%) marketers in the UK still using segmentation within their organisations – even though its effectiveness is being called so clearly into question.

The findings, which surveyed 500 UK marketers, found that whilst 86% of respondents update their customer segmentations at least every two years, well over half (56%) still struggle to target their audiences effectively.

And marketers think this new challenge is a result of consumers becoming trickier to understand, with two thirds (66%) concerned that consumer behaviour has become more complicated since the pandemic.

In fact, with easy access to more information and choice than ever before – especially online – priorities, preferences and purchasing habits now have potential to change at any given moment. Almost three quarters now agree it’s hard to group consumers into one segment because they’re always evolving.

The new era of targeting through consumer ‘situationships’

With this research exposing the shortfalls in traditional customer segmentation methods, Treasure Data is calling upon brands to rethink their approach and instead aim to make use of first party data to ‘segment by situationship’ in real time.

In its new report, ‘Better Decisions: The era of consumer situationships ’, situationships are defined as a momentary mindset based on an individual’s current mood, needs, priorities and circumstances.

Treasure Data further surveyed 2000 adults in the UK to gauge the modern consumer mindset, finding that many consumers in fact flit between mindsets or ‘situationships’, derived from numerous behavioural traits. The most popular of these momentary mindsets included ‘Family Firsts’, ‘Safe shoppers’, ‘Infrequent buyers’, ‘Purpose shoppers’ and ‘Seasonal Spikers’.

First party data to pin down consumers in real time

The report highlights prevailing gaps in the data management strategies within many brands, with 64% of UK marketers admitting that data blind spots are preventing them from getting a full picture of their customers. And with four in ten marketers (39%) recognising that consumers will opt-out of sharing their data with brands they don’t trust to handle it properly, marketers look set to struggle with elevating their segmentation efforts.

Commenting on the report findings, Director of Marketing EMEA and India at Treasure Data, Andrew Stephenson said:

“The findings of this research validate what we knew to be true – that outdated models of segmentation which fix consumers into rigid and permanent groups simply don’t work. And marketers will face an urgent problem if they don’t take the need for better first party data seriously.

“If they are to have a real time, fluid and evolving understanding of their customers, then brands must look to eliminate data blindspots, access and invest in data security measures to win consumers trust and from there, achieve the gold standard of targeting; segmentation by mindset and situation.”

Read more:
Over half of UK marketers believe consumer segmentation is an outdated and oversimplified marketing method 

0
FacebookTwitterGoogle +Pinterest
previous post
Cyber skills gap leaves business vulnerable to attacks, new research reveals
next post
Over 10,000 SME owners apply for £25,000 Business Boost grant

You may also like

Getting to Know You: Vincent Marchetti, Founder of...

February 24, 2023

Errol Musk claims Tommy Robinson ‘very likely’ to...

January 7, 2025

Vintage teddy bear sales soar amid Paddington Bear...

November 20, 2024

Video Production Mistakes That You Might Want to...

February 22, 2023

Senior business leaders back Keir Starmer’s call not...

September 26, 2023

Tiney raises £7.2m to fix the childcare crisis

May 13, 2024

Netflix doubles down on UK productions despite slowdown

April 27, 2023

Commercial vehicle output records best May since 2008

June 30, 2023

5Mins raises $5.7M to reinvent employee upskilling 

November 7, 2022

Amazon announces another 9,000 job cuts over fears...

March 21, 2023

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Trump ally stands firm against ‘big, beautiful bill’ despite pressure: ‘It’ll completely backfire’

      June 8, 2025
    • Rubio condemns assassination attempt on Colombian presidential candidate Miguel Uribe

      June 8, 2025
    • Obama WH physician says Biden doc should have performed cognitive test

      June 8, 2025
    • Trump warns of ‘serious consequences’ if Elon Musk funds Democrats

      June 7, 2025
    • Musk jokes about reconsidering stance on Big Beautiful Bill after Schiff’s praise

      June 7, 2025
    • Musk deletes explosive posts about Trump and Epstein files

      June 7, 2025

    Categories

    • Business (8,152)
    • Investing (2,019)
    • Politics (15,571)
    • Stocks (3,136)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved