market segmentation case study
Customer Segmentation Analysis for Creative Company
CLIENT: FEDORIV
FEDORIV is an independent design & marketing company with offices in Berlin and Kyiv.

Founded in 2010, the company has grown from scratch to develop over 130 brands. Today, just eight years on, the firm employs more than 70 in-house specialists and FEDORIV is already cementing its international credentials.

When we first met them in May 2018, the company had just celebrated the opening of their Berlin office. Connecting closer with their new market and its customers was FEDORIV's main ambition.


Link: fedoriv.com
FEDORIV
2018
SHOWREEL
THE REQUEST
FEDORIV needed to get a clear picture: would their way of positioning, communicating and delivering their products and services be suitable for the German market.


They had a bunch of questions:

  • What accents to use due to sales calls?

  • How to position FEDORIV on social media?

  • How to present themselves at events like CeBIT?

  • What to include in sales brochures?

  • What content should they provide to have better communication with potential clients?
FEDORIV office
Additionally, we wanted to know whether FEDORIV's passionate style of working and communicating, (which was a big hit in their local market), would be a suitable way of presenting and pitching to German clients.


While their previous clients state they selected FEDORIV for its flamboyance, we questioned whether this style would be appropriate in Germany – which is perceived as a country which prefers to conduct business relationships in a more reserved fashion.


So we studied the distinctive characteristics of their prospective new clients; analysing up-to-date market evidence in Germany to ascertain what their needs and preferences were.


This research formed the bedrock of FEDORIV's communication style with German clients; enabling them to make informed decisions about the most appropriate approaches and methods to communicate effectively in this challenging new market.


WHAT WE DID
Marketing research on customer preferences and behavior patterns.

We studied rational customer expectations along with the underlying emotional motivations and created a model that reflects it. Our study participants were people who have ever bought brand development services in Germany.

The sample included decision-makers from startups and local businesses with 5-10 employees, as well as top managers from companies such as Drager, HP, and DELL with 5000+ employees.

THE METHODOLOGY:
Kano and Osterwalder's models
We needed to get a complex view: a system of rational and emotional factors which affect how people make their decisions and an explanation of underlying causes.


We used in-depth interviews to explore respondents' real experience and factors that affected their choice.


The interview questions were focused on all aspects of the customer journey, including the initial idea, selecting agencies, inquiries, evaluation, actual cooperation, decisions, personal emotional experience, and hopes and fears at each of these stages.


Further, we analyzed the data using the Kano Model and Alexander Osterwalder's Value Proposition Canvas,
going through the following stages:


  • revealing insights – unobvious statements about customers' behavior or motivations

  • studying gains / pains / jobs – respondents' notices about what contributes to their happiness in the process of ordering services, cooperation with an agency, and using the results

  • defining customers' quality criteria – the breakdown of customer's understanding of "quality" of a product/service

  • revealing customers' needs, splitting them into personal needs and business needs.


This methodology let us discover respondents' previous experience fully, including all the unexpected motives, which could be hidden for customers themselves.


That data gives FEDORIV a sufficient basis to provide their future customers with the best experience possible.
THE PROCESS
If you want to create an absolutely new and astonishing customer experience, to create something extraordinary,
this product needs to satisfy customers' deeper needs.
We revealed six segments of customers, based on the similarity of their personal needs. We studied each group thoroughly and provided an explanation of respondent motivation.


We extracted quality criteria – distinct product/service characteristics that customers use to prove a high level of service among all respondents.


Discovered criteria were voted on by customers and prioritized by their importance according to the level of customer emotional reaction on presence and absence for each one of them.


All the quality criteria were broken down to motivators and demotivators. That separation allowed FEDORIV to distinguish "nice-to-have" features and essential factors.


Quality criteria only reflect how people estimate the quality of the product, based on what they experienced previously. Thus, even if you design a product that satisfies all of them, it would only ever become merely a "good" product.


Instead, if you want to create an absolutely new and astonishing customer experience, to create something extraordinary, this product needs to satisfy customers' deeper needs. It should offer some "extra" to exceed people's expectations. This can be done by studying the customers' subtlest emotional reactions.


We classified those as gains, pains, and jobs-to-de-done, according to Osterwalder's Value Proposition model and added them to our segments' description.


THE RESULT
FEDORIV's success relies on
delivering what resonates with
the target audience,
across every touchpoint between the company and its customers.
We analyzed customer experiences in-depth to provide FEDORIV with insights that could drive purchase decisions
and spark long-term connections.


We provided FEDORIV with a model to objectively evaluate and develop its business processes and build up an individualized experience for each and every one of their future clients.


We're ensured that our research is absolutely pertinent, and revealed issues are urgent. We have talked to the real people, with their own experiences, fears and strives. That has granted us with a possibility to did that research as close to the customers, as it could be. Among all the other things, the model included:


26 insights –
unobvious statements about customer behavior or motivations were discovered


over 250 notices about emotional factors of customer decisions were extracted and structured in distinct categories: ie pains, gains, and jobs-to-be-done to enhance and increase the company's value proposition


167 mentions of customer expectations about the quality of service were formed into 29 distinct customer quality criteria – which were then rated and prioritized by the target audience.


Afterall, we tested client's communications against the developed model to give an objective view on how close the company currently is in providing customers with their desired level of experience.


Overall, our developed initial guidance for FEDORIV is a robust basis to elaborate relations with German customers. We've studied and described how people judge, choose and evaluate agencies to work with.


That guidance could be implemented in the agency's internal processes, client communications, sales, and marketing operations. That was made to help our client entry the market smoothly and contentedly.



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