Decision concept

Strategic segmentation criteria: splitting in order to decide

What must be established

A useful analysis keeps its controls visible.

  1. 01

    Choose variables linked to value or to the way to win.

  2. 02

    Test measurability, stability, accessibility and actionability.

  3. 03

    Assess the decision gain added by each criterion.

RESULT OBTAINED

A justified set of criteria and a reproducible rule for assigning to segments.

Decision reference

Make the next choice more explicit.

DECISION SUPPORTED

Which variables separate groups that call for different strategies?

DELIVERABLE TO KEEP

A justified set of criteria and a reproducible rule for assigning to segments.

NEXT ELEMENT TO EXAMINE

Needs-based segmentationExplore →

26 · ORIGINAL ASSET

Actionability score of a segmentation

Quality test

Measurability, stability, difference in response, actionability and decision value are scored separately.

By sector

7.3/10
Measurable8
Stable9
Differentiated7
Actionable6
Decision-relevant7

By need

8.2/10
Measurable9
Stable6
Differentiated8
Actionable9
Decision-relevant8

By maturity

7.5/10
Measurable7
Stable7
Differentiated6
Actionable8
Decision-relevant9

Teaching case · simulated data · no real-world market conclusion.

DECISION SUPPORT METHOD

Quality grid for segmentation criteria

A segmentation criterion is strategic when it creates groups that call for different decisions. Age, size or sector are not enough if they change neither the need, nor the economics, nor the access. The grid tests the ability of each criterion to produce a reproducible decision.

Score each criterion from 0 to 2 on five controls. A criterion is kept with a minimum score of 8 out of 10 and no zero on measurability or actionability. Then test stability over two periods: if more than 20% of the entities change segment without a real change of behaviour, the criterion is too unstable to steer an investment.

ControlScore 2Cause of rejection
Decision relevanceThe segment changes the offer, the access or the allocation.The criterion describes without changing any decision.
MeasurabilityThe data exists with definition, period and source.Membership rests on a non-reproducible impression.
ActionabilityA distinct action can be executed and measured.The segment cannot be targeted or served differently.
StabilityThe group remains interpretable over the horizon retained.Movements reflect measurement noise.
EconomicsCosts, value and constraints can be compared.The segment masks major economic heterogeneity.

The sum is not an automatic verdict. It serves to eliminate weak criteria and to document the trade-offs. Any different weighting must be tested to check that it does not artificially reverse the priorities.

MOVE FROM ANALYSIS TO YOUR DECISION

Build a segmentation that makes it possible to choose

Build my segmentation ↗

MOVE FROM ANALYSIS TO YOUR DECISION

Build a segmentation that makes it possible to choose

Build my segmentation ↗

RETURN TO THE DECISION SYSTEM

See the canonical definition of marketing strategy→