Should You Update Your Market Segmentation Now or Later?

Recently, I found myself in a conversation with a colleague discussing segmentation research. The age-old mantra of segmentation emerged: to be effective, a segmentation solution must yield segments that are Measurable, Substantial, Accessible, Differentiable, and Actionable.  And, we may add, Stable over time.

However, the landscape has shifted dramatically since those principles were first established. In 2024, stability remains a consideration, but its definition has evolved. The disruptions of 2020 and the ongoing challenges thereafter have reshaped our understanding of what constitutes stability. Segmentation, once expected to endure for 3 to 5 years, now faces a “new normal” of its own.

The ‘New Normal’ of Uncertainty

While most of us agree that the pandemic itself is in the rear-view, its effects loom large.  Combined with today’s global political turbulence, we can safely say that the only certainty is uncertainty, and its impact on consumer behavior is profound and ever-shifting. What were once considered temporary adaptations may have become enduring shifts in consumer habits.

For instance, I’ve embraced the convenience of meal delivery service in lieu of my family’s traditional Sunday dinner out.  This type of change underscores the need for businesses to adapt their strategies in response to evolving consumer preferences.

Adapting Segmentation Research for the ‘New Normal’

In light of these challenges, the traditional approach to segmentation research requires modification. Rather than a process intended to cover several years, a faster and leaner approach may be warranted.

Expectations for updating the analysis should be built in from the outset, allowing for agility in response to unfolding events.

Segmentation Research: Driving Strategy at a Faster Pace

Understanding target segments and their preferences is essential for allocating resources effectively, particularly in times of significant change.

Consider how your recent decisions might have differed with up-to-date information on consumer preferences. By staying attuned to where your current and prospective target segments are focusing their attention, you can better position your brand for success.

The question of when to update market segmentation and target profiles is not a matter of now or later but both. In today’s rapidly evolving landscape, planned adaptation is key to staying ahead of the curve.