Insights

Segmentation for a Building Products Manufacturer

Issue

A leading building products manufacturer wished to understand the different needs and profiles of their thousands of channel partners so they could more efficiently deliver customized marketing messages.

Our Approach

We used insights from customer interviews to develop a quantitative survey. After administering the survey to more than 1,000 channel partners (dealers) in the U.S., we applied segmentation techniques including latent class analysis and convergent cluster analysis to the data.

After completing the research and data analysis, we identified and evaluated segments using statistical and strategic criteria and documented the profile for each segment, summarizing its strategic implications. Finally, we designed software tools and trained the client in their use for further exploration of the data and the profiling of new accounts.

Results

ZS identified five core segments, based on the profile characteristics of each account and what customers and prospects needed from their suppliers. The client is currently using the segmentation results to tailor value proposition designs and go-to-market strategies.