Page 5: Market segmentation
Market segmentation involves grouping customers with similar characteristics. Customer focused organisations want to know as much as possible about each of these segments so that they can develop sympathetically the products that cater for that segment's particular needs. YBS has built on its research findings to meet the needs of its youth market and build long-term relationships.
YBS worked with focus groups of parents and young people divided into 4 different segments based on life stage.
- Couples planning to have a child
- Parents controlling their child's account(s)
- Own account: 12-15 years
- Own account: 16-21 years.
There are marked differences between the segments, with different motivators for particular financial needs and preference as to how to be contacted.
As an example of the insights YBS has gained through the segmentation and research process, let's look at the segment 'parents in the pre-birth to 1 year life stage'.