Let me preface with a presentation I did some years ago. In it, I spoke about an ad run by the Queensland government for tourism.
The ad featured a model walking on an empty beach saying, “Where the bloody hell are you?“
I used this phrase to illustrate that our job as marketers is essentially to figure out, “Where the bloody hell are you?”—as in, where is the market at on the actual continuum?
If you are really short on time, venturing into a new market, or exploring a new vertical, here are the three things you want to start with:
Understanding the Continuum
This is an early version of the continuum I created:
- Problem Recognition:
- You have a problem.
- You don’t know the problem.
- You don’t believe the problem.
- You kind of accept the problem.
- Solution Awareness:
- Is there a solution possible?
- I don’t know.
- I don’t believe.
- I accept.
- Problem-Solving Phases:
- Search for solutions.
- Consider them.
After considering solutions, you move to the product phase, and then go through the buying experience phase.
This leads to the user experience part, where you decide whether to continue using the product or not.
Not everyone enters at the same stage. People can enter at any level or stage before going through the buying experience.
For example, in B2B lead generation, the buying experience may take place offline via phone conversations or presentations.
Market segmentation for those short on time
Let’s move on to the solution part—understanding what to do at each of the phases.
If it’s a problem recognition phase, what actions should you take? And so on.
I initially had an elaborate framework as part of my original training. However, after working with many marketers, I realized that nobody appreciates excessive complexity.
Hence, we will simplify this process and make it more accessible.
So, here we present market segmentation for dummies or market segmentation for those short on time, skills, or capability.
This simplified approach came about when someone reached out to me.
They wanted to run a Quiz funnel in the male testosterone space, targeting guys who are starting to lose their mojo.
This includes addressing issues like low libido, erectile dysfunction, and fatigue—going to the core of what this segment believes it means to be a man.
The question posed was, “Hey, what do I do here? Do you have an example?”
I receive this question at least once a week during new user calls. People often ask:
- “What’s working?”
- “What should I use?”
I prefer not to provide direct answers, primarily because:
- Confidentiality: I don’t want to share what others are working on.
- Innovation: Copying someone else’s strategy is a lazy way of doing marketing. If funnel hacking stops working, what’s your next step?
Such marketers often experience a “feast and famine” cycle with their funnels.
I encourage marketers to think at a higher level of abstraction, which allows for flexibility and adaptation.
When entering any market, while each market has its nuances, these three levels of segmentation will generally get you there:
- Problem Recognition
- Solution Awareness
- Decision Making
These three segments will guide you through the critical aspects of market segmentation, helping you build a functional funnel without diving into overly complex details.
To effectively address these segments, consider creating three different funnels.
This could also be a single decision tree where you dynamically change the copy based on user input. Technical setup aside, the goal is to have three distinct conversations with the market.
By doing so, you’ll be able to cater to various user needs and stages in the buying process, leading to a more robust and adaptable marketing strategy.
1. Problem Conversation
The first essential conversation centers around understanding the problem.
This involves addressing the symptoms someone is experiencing. This approach applies to both B2B and B2C markets.
Identifying the Symptoms
In our example, helping someone understand why they’ve lost their mojo is crucial.
Your copy and ads should focus on relatable symptoms, rather than technical details like, “Has your testosterone dropped through the floor?” because most people won’t know that.
Instead, they will resonate with statements like:
- “I feel lethargic.”
- “I’m no longer sexually active with my spouse.”
- “I’m tired all the time.”
These are issues that your target audience will easily identify with.
Crafting Relatable Scenarios
Present a scenario that depicts a day in the life of a prospect facing these problems. For instance:
“Imagine waking up feeling exhausted, struggling to get through the day, and feeling distant from your partner. Does this sound like you?”
When prospects see themselves in the scenario, they’ll feel that the content is speaking directly to them.
Tailoring Your Funnel
Your ads, funnel, and copy should all be crafted around this problem conversation.
By focusing on the symptoms and daily challenges, you capture your audience’s attention and lead them to the next stage in your marketing funnel.
This approach helps build a strong connection with your audience, making them more likely to engage with your content and consider your solutions for their problems.
2. Confusion about the solution Conversation
The second essential conversation focuses on confusion about the solution.
This is particularly relevant in markets with numerous competing options, such as testosterone supplements or solar energy solutions.
Overwhelming Choices
In the testosterone supplement space, for example, customers can be overwhelmed by the sheer number of options available, both in stores and online.
The same applies to the solar energy market, where various vendors offer different combinations of batteries and solar panels.
Guiding the Selection Process
To help your audience navigate this confusion, your role is to guide them in selecting the right solution. This can involve:
- Comparative Analysis: Highlight why certain hormone therapies fail.
- Competitor Critique: Explain why most people don’t get the expected benefits from standard solar installations.
Crafting Your Message
Your conversations and content should address these points:
“Navigating the world of testosterone supplements can be daunting.”
“Why do most hormone therapies fail to deliver lasting results?”
Or take the solar market—why do many installations fall short of their promised benefits?
By providing insights into these common pitfalls, you position yourself as a trustworthy guide.
Tailoring Your Funnel
Your ads, funnel, and copy should revolve around the solution confusion conversation.
By demystifying the market and critiquing ineffective solutions, you help potential customers feel more confident and informed, making them more likely to trust and choose your offering.
This approach not only educates your audience but also builds credibility, setting the stage for them to consider your solution as the best option available.
3. Jaded Segment Conversation
The third essential conversation targets the jaded segment.
While this segment is more prevalent in B2C markets, it can also apply to B2B scenarios—such as large-scale software purchases where existing solutions have repeatedly failed to meet expectations.
Dealing With Skepticism
In the B2C context, individuals in this segment have likely tried to solve their problem multiple times without success.
For example, someone trying to fix their mojo problem may have already:
- Taken supplements
- Received injections
- Visited doctors and chiropractors
- Consulted naturopaths
These individuals are extremely skeptical due to broken promises from past solutions, making them a challenging yet sizable segment.
This applies to markets like weight loss, where persistent failure is common.
Addressing Broken Promises
Your conversations with this segment should focus on why previous solutions failed and how your solution is fundamentally different.
Key points to address include:
- Why Other Solutions Failed: Explain the shortcomings of past attempts.
- Introducing New Mechanisms: Highlight new scientific discoveries or innovative mechanisms that your solution incorporates.
Crafting Your Message
Your content should communicate:
“We understand you’re skeptical—after trying multiple solutions from supplements to injections, you’re still facing the same issues. Here’s why those didn’t work and how new science offers a breakthrough.”
Tailoring Your Funnel
Your ads, funnel, and copy should be designed around the jaded segment conversation.
Emphasize the unique aspects of your solution and how it addresses the critical elements that previous attempts missed.
This strategy helps mitigate skepticism and builds trust, positioning your solution as the credible and effective choice that finally addresses their longstanding problem.
Why Three Segments?
The reason we want to start with three conversations is twofold:
- Manageability: Breaking down the market into three segments makes the process more manageable.
- Insight: It helps you understand what type of prospects are responding to your efforts.
Identifying Early Wins
For instance, if you’re seeing a lot of clicks for one segment, it indicates that your ad targeting and messaging are resonating well with that audience.
This early traction suggests:
- Current Success: Focus on the segment where you’re gaining early traction.
- Future Potential: The other segments aren’t bad, but you’re starting with where the initial wins are.
Strategic Focus
By setting up three different conversations with the market, you cover a broader footprint, increasing your chances of finding a winning strategy.
This approach is more effective than relying on a single funnel or idea to achieve success.
Doubling Down
Once you identify which segment shows early traction, double down on that segment first.
Capture that market before moving on to the other segments. This strategic focus allows you to capitalize on early wins and expand systematically.
Broad Coverage
Having three different segments means:
- Larger Reach: You’re covering a larger space.
- Higher Likelihood: Your chances of hitting a responsive market are higher.
“This approach is better than thinking there’s one funnel to rule them all or believing a single idea will ensure success.”
Applying the Framework: Home Loans Example
To illustrate how to use this framework, let’s apply it to the home loan market.
Segment 1: Identifying Home Loans as the Solution
Solution Awareness Conversation
In this segment, we focus on helping potential borrowers understand why a home loan is the right solution for them.
Key Points to Address:
- Rent vs. Own: “Why renting is costing you more in the long run.”
- Investment in Future: “How owning a home can build long-term wealth.”
- Financial Flexibility: “How home loans provide financial options to suit your needs.”
Crafting Your Message:
“Still renting? Discover how owning a home with a loan can build your wealth and offer financial flexibility. Learn why home loans might be the perfect solution for you.”
Content Strategy
- Ads: Highlight the benefits of owning over renting (“Tired of renting? See how a home loan can help you own your dream home.”).
- Landing Pages: Include detailed comparisons between renting and owning, and provide success stories of first-time buyers.
- Emails: Share educational content on the long-term financial benefits of homeownership and how home loans can help achieve that.
Segment 2: Addressing Solution Confusion
Solution Confusion Conversation
Next, we tackle the myriad options available to borrowers, which can lead to confusion.
Key Points to Address:
- Different Loan Types: “Fixed-rate vs. adjustable-rate—which is better?”
- Lender Choices: “There are so many lenders—how do I choose?”
- Hidden Fees: “What hidden fees should I be aware of?”
Crafting Your Message:
“Feeling lost among the many home loan options? Let us guide you through the differences between fixed-rate and adjustable-rate loans and help you find the right lender.”
Content Strategy
- Ads: Highlight common loan types and their benefits (“Fixed vs. adjustable: Which home loan is right for you?”).
- Landing Pages: Comparative charts and lender reviews.
- Emails: Detailed breakdowns of loan terms and fee structures.
Segment 3: Engaging the Jaded Segment
Jaded Segment Conversation
Finally, we address those who have tried and failed to secure a home loan in the past and are now skeptical.
Key Points to Address:
- Past Failures: “Why were my previous applications rejected?”
- Broken Promises: “Why did the last lender fail to deliver?”
- New Solutions: “What’s different this time?”
Crafting Your Message:
“Tired of broken promises and failed loan applications? Here’s why previous attempts didn’t work and how new options can finally get you approved.”
Content Strategy
- Ads: Acknowledge past pain and offer solutions (“Tired of loan rejections? We have the answers.”).
- Landing Pages: Customer testimonials and case studies showing success stories.
- Emails: Educational content on new lending criteria and emerging loan options.
Next Step: Implementing Reverse Market Research
You’ve set up your three initial market segments. Now, it’s time to take your strategy to the next level by implementing Reverse Market Research.
This technique will help you refine and optimize your segmentation efforts, ensuring you reach the right audience with the right message.
To learn how Reverse Market Research can enhance your marketing strategy, head over to our detailed guide.
Discover how to:
- Run quick, low-budget ad campaigns to gather real-world data.
- Analyze your results to validate market assumptions.
- Iteratively improve and optimize your campaigns for maximum effectiveness.
Don’t miss out on this opportunity to make your marketing efforts more data-driven and effective.
Learn more about Reverse Market Research and start optimizing today!
