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1.
MarketSegmentation &
Customer Persona
NVC-Session 2
2.
Agenda• Monkey Business Illusion & Selective Attention
• To find the rationale for finding the right market
• Steps in market segmentation
• Defining Personas
• How to develop personas
• Components of a typical persona
• Excercises
3.
Do we spot all the opportunities?4.
We have selective attention as humans5.
Why we need segmentation?The condition for business
sustainability
Provide basis for
competitive advantage
• To find the paying customers.
• Just paying customers is not enough; we need sufficient money in a short period of time
• Right segmentation provides the basis for high market share
The China Syndrome
• Most entrepreneurship look at big number of population and assumes they can take at least
1% of it that is wrong and overestimation that makes foolish assumptions
Multisided and Complex
Markets
• In the era of omni channel distribution and platforms we need to cater both primary
(consumers) and secondary (customers). So, we need to distinguish their particular needs.
6.
How to do market segmentation• Step 1- Brainstorm
• Find out all opportunities you are passionate about
• Find out what industries can benefit from it.
• Focus on end users and see how and how they can benefit
• Focus on what makes the end users perform
• Make a mind map of that
7.
How to do market segmentation• Step 2- Narrowing Down
• Is the target customer well-funded?
• Is the target customer readily accessible to your sales force?
• Does the target customer have a compelling reason to buy?
• Can you today, with the help of partners, deliver a whole product (functioning
solution, e.g., an engine, not a fuel cell that can not integrate with old systems)?
• Is there entrenched competition that could block you?
• If you win this segment, can you leverage it to enter additional segments?
• Is the market consistent with the values, passions, and goals of the founding team?
8.
How to do market segmentation• Step 3- Do Primary Research
• End User:
• Who specifically would be using your product?
• Who has decision-making power?
• Application:
• What would the end user be using your product for?
• What is the task that would be dramatically improved by your new venture?
• Benefits:
• Is it a time savings? Cost savings? Additional profit?
• Lead Customers:
• Who are the most influential customers that others look to for thought leadership and adoption
of new technology?
9.
How to do market segmentation• Step 3- Do Primary Research
• Market Characteristics:
• What about this market would help or hinder the adoption of new technology?
• Partners/Players:
• Which companies will you need to work with to provide a solution that integrates into the
customer’s workflow?
• Size of the Market:
• Roughly, how many potential customers exist if you achieve 100 per cent market penetration?
• Competition:
• Who, if anyone, is making similar products—real or perceived?
• Complementary Assets Required:
• What else does your customer need to get the “full solution,” that is, to get full functionality
from your product?
10.
Practice Example: Wahu Smart Sneakers11.
Practice Example: Wahu Smart SneakersIn mini groups of 4 people try to make a market segmentation of Wahu
Sneakers
12.
Persona13.
What is Persona• Preparing personas helps the design team to identify with
future users. Personas are based on factual knowledge and
insights into a large range of users who in all likelihood, will
behave in the same way. Personas are classified on the
basis of character traits, so based on who the users are and
not on, for example demographics or purchase volume.
• When using personas, prevent stereotyping. Stereotyping is
based on assumptions, prejudices and generalizations that
are not based on collected facts and research. Also keep in
mind that personas are meant to be an internal tool for the
design team, not as a means to interact and communicate
with users.
14.
How to develop Personas1. Identifying
assumptions:
2. Form skeletons.
Search for ‘skeletons’
of personas by further
detailing the clusters
you found:
3. Translate skeletons
to personas:
Identify assumptions and related stereotypes (in order to be able to break these down later). Identify the typical and traditional
user categories for this.
Determine what these different users in these traditional categories want to achieve (the user goals). Formulate these goals via ‘I
want...’ or ‘I need ...’ statements.
Write all the ‘I want...’ and ‘I need...’ statements, in random order, on separate post-its.
Use the post-its to discover patterns in the ‘I want...’ and ‘I need...’ statements. The result is a new layout of users sorted in a
number of clusters.
As a design team, discuss the most important needs, objectives and preferences of the different groups that arise. Combine groups
that are very similar.
Make a list of the characteristics per group; these will form the skeletons for the later personas.
Try to formulate three to five skeletons. Do you have many more? Choose the most important three to five in order to continue.
Test the skeletons against previously collected insights about the user (for example, from other tools) and adapt them if necessary.
Use the fill in form to make the skeletons come alive in personas.
Test the personas found with one or more of the EMPATHIZE tools.
15.
PersonaExample
16.
Components of a Typical Persona1.
Photograph
It’s important to have a visual representation of your persona. It helps to put a fake face to the fake user
you’re creating. Select an image that strikes a balance between a generic stock photo and jarringly
unique. Go for believability.
2. Key
Quote
This is a one-line quote, either captured directly from interviews or paraphrased, that communicates
your persona’s perspective or experiences.
3. Goals &
Motivators
What does this user hope to achieve? What task do they want to complete? What is driving this
project/conversation/need? Asking why during interviews helps flesh out these details. The user doesn’t
need a report, they need a tool that helps them prove their value, provide support for their team, turn
the business around, etc. It’s a much deeper need than a feature, function, or output.
4. Ideal
Experience
Ask the users what their ideal experience looks/feels like. Bonus points if they close their eyes while
doing this as you know they’re really imagining a future state. Here you’ll gain some insight into their
thought process, goals, key features, etc. This field helps tie together the other fields.
17.
Components of a Typical Persona5. Current
Tools/Processes
How do users currently solve the problem that sparked the project? If they can’t currently solve the problem, what tools
or processes do they use that might be related to this project. The key here is to identify their problem solving
methodology and user flow.
6. Key Features
Needed
During your user research you’ll likely identify key features that they need. You can either ask them outright or you’ll hear
the feature(s) referenced repeatedly by multiple users. These typically tie back to goals. Capture them here and
remember to validate the need for these features during analysis and design.
7.
Frustrations/Pain
Points
Here you’ll note things the user wants to avoid or obstacles that prevent them from achieving their goals. Sometimes
frustrations are loud and clear during research phases. You may hear “I hate that it does X” or “I’m sick of having to do Y.”
Other times it can be subtle “I wish” statements, such as “I wish we could have X.” Or a very generic statement, like “our
data quality sucks.” Make sure you probe during the interviews to identify the root cause of the frustration.
8. Behaviors
This is the “day in the life of” category. What it’s like to be the user on a daily basis; what links their goals, motivations,
pain points, and process together. It can be used to describe how they relate to others, how they relate to technology,
when and how they will use the product, and other behaviors that might apply to their daily routine as it relates to this
project.
18.
Exercise• Make a persona of customers of Costa
Coffee