Calculation of the capacity of consumer segments

Based on the results of the study, as a rule, about 2-3 segments are selected (on average out of 10), on which the company should primarily focus its marketing efforts. This is due to the Pareto rule: 80% of revenue comes from 20% of the audience. Thanks to this analysis, the company is able to increase its turnover up to +7%.

There comes a point in the work of many companies when the question arises: what positioning is optimal from a revenue (or profit) point of view? The answer lies in assessing the capacity of customer segments.

During the segmentation process, information appears that can be used to calculate the capacity of each consumer segment, namely: the market share of the consumer segment (or segment size) and the average bill (average purchase). Based on these data, the necessary indicators are calculated. It often happens that the largest segment is not the most efficient in terms of revenue (or profitability) of the company. Conversely, the smallest segment rises from last place to the middle of the list.

This type of research is one of the most popular at BCGroup.

The minimum size of a representative sample for such projects per region is 1000 questionnaires. By region we mean any territory for which separate analytics is required (this could be, for example, a city or country). In cases where it is necessary to separately consider and compare data, for example, 2 cities, the minimum sample is 2000 questionnaires. The minimum period for such a survey is 2 business days.

The cost of a project to draw up a portrait of the target audience consists of the cost of collecting a selected number of questionnaires (payment is taken only for fully completed questionnaires) and the cost of analytics (usually no more than 10-15% of the cost of data collection)

You can calculate the cost of one questionnaire yourself using our calculator (you will need to enter the number of open and closed questions in the questionnaire, quotas)

The cost of such a study is from 2000 £ (the cost is indicated for a minimum sample).

Calculation of the capacity of consumer segments takes place in two stages: 1) segmentation of consumers and drawing up their portraits and 2) selection of the most interesting segments by assessing their capacity.

Once the segment capacity has been calculated, the most important moment comes: the actual selection of segments. It is recommended to conduct analysis in at least two additional areas. First, an analysis of the competitive environment is carried out: it is calculated which segments are more saturated with competitors’ offers and which have a lack of offers. The easiest way to visually present this information is in the form of positioning maps. Next, you need to remove highly saturated segments from the list under consideration. After this, at the second stage, the so-called “Pareto segments” are calculated: those that bring 80% of revenue, without being highly saturated.

If the goal is not to increase revenue, but to maximize profits, the analysis is based on the average marginality of segment purchases.

BCGroup's projects on assessing the financial capacity of consumer segments is structured as follows:

1. An NDA (confidentiality agreement) is signed between BCGroup and the company;
2. A BCGroup specialist clarifies the reasons that necessitated such a study and understands the current situation;
3. A BCGroup specialist agrees with the customer on the final version of the survey questionnaire;
4. BCGroup specialists conduct the survey in a short time (it is possible to survey up to 5,000 people per day);
5. Next, the BCGroup employee transfers the data array to the customer’s representative in Excel or SPSS format;
6. After 8-14 days, a BCGroup employee sends an analytical report to the customer based on the results of assessing the financial capacity of segments and selecting the most attractive segments (sample reports)