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Mobile Consumer Segmentation: Framework and Models

As mobile markets mature, the tools required by MNOs to remain competitive must also develop.

In the past, high growth rates and a relatively low level of competition (more about the share of new acquisitions than absolute share of the market) have favoured a relatively simplistic mass-market approach to marketing, product development, sales and customer support. Propositions have been similar with some level of price adjustment if a player felt that it was not achieving sufficient share of new acquisitions.

• Accepting high churn rates and little product or service differentiation kept operating costs to a minimum and allowed MNOs to expand quickly as their customer bases continued to grow exponentially.

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Table of Contents


1
Overview
1
1.1
Overview
1
2
Introduction
2
2.1
Background
2
2.2
Report Objectives
3
2.3
Report Content
4
3
Traditional and Generic Models
5
3.1
Introduction
5
3.2
Value Based Segmentation
6
3.2.1
Overview
6
3.2.2
General Approach
7
3.2.3
Value Based Segmentation Examples
7
3.2.4
Pros: Value Based Segmentation
8
3.2.5
Cons: Value Based Segmentation
8
3.3
Demographic Segmentation
8
3.3.1
Overview
8
3.3.2
General Approach
9
3.3.3
Demographic Segmentation Examples
9
3.3.4
Pros: Demographics Segmentation
12
3.3.5
Cons: Demographic Segmentation
12
3.4
Behavioural Segmentation
12
3.4.1
Overview
12
3.4.2
General Approach
14
3.4.3
Behavioural Segmentation Example
15
3.4.4
Pros: Behavioural Segmentation
16
3.4.5
Cons: Behavioural Segmentation
17
3.5
Psychographic Segmentation
17
3.5.1
Overview
17
3.5.2
General Approach
18
3.5.3
Psychographic Segmentation Examples
19
3.5.4
Pros: Psychographic Segmentation
22
3.5.5
Cons: Psychographic Segmentation
22
4
Multidimensional Segmentation
23
4.1
A More Effective Approach to Segmentation
23
4.2
General Approach to Multidimensional Segmentation
23
4.3
Multidimensional Segmentation Example
25
4.3.1
BellSouth
25
4.3.2
Pros: Multidimensional Segmentation
26
4.3.3
Cons: Multidimensional Segmentation
26
5
Prioritising Segmentation Models
28
5.1
Overview
28
5.2
Goal: Strategic Value
29
5.3
Goal: Customer Acquisition
30
5.4
Goal: Customer Retention
30
5.5
Goal: Product and Service Development
31
6
Conclusions
33
7
Recommendations
35