Market Segmentation Lifelong Learning 2007 Presented by Greg Marsello

We Must Segment the Market …80/20 Principle

Why Segment the Market? You serve some, but not all, demographic groups. There is no average participant. Roughly 20% of your customers give you 80% of your operating margin. To know who the 20% is. To focus resources on that 20% — programs, staff, marketing. To make sure you serve your best customers very well.

Problems Caused by NOT Identifying Primary Market Segments Ineffective program selection Wasted promotion dollars Decrease in repeat rate Reduced operating margin Wasted staff time

Market Segmentation A process by which you distinguish or differentiate your various audiences, build a separate demographic profile, and then deliver different products, possibly with different promotions. The ideal number of market segments is 7

Chart 1: Organization Participants

Chart 2: Net Income

Chart 3: Organization Resources

Chart 4: Efficiency Strategy

Finding Your Seven Primary Market Segments Step 1: Get registration software Step 2: Run out your best 200 participants Step 3: Survey your best participants Step 4: Analyze your demographics Step 5: Get data for all participants Step 6: Now you know

Ideal Software System Mailing ListWord Processing Registration Brochures Financial Statements Marketing Analysis Room Locations Financial Analysis Master Data File Customer Demographics History

Finding Your Seven Primary Market Segments Step 1: Get registration software Step 2: Run out your best 200 participants Step 3: Survey your best participants Step 4: Analyze your demographics Step 5: Get data for all participants Step 6: Now you know

Recency Monetary Value/Activity Know Your Participants & Allocate Resources Accordingly

Finding Your Seven Primary Market Segments Step 1: Get registration software Step 2: Run out your best 200 participants Step 3: Survey your best participants Step 4: Analyze your demographics Step 5: Get data for all participants Step 6: Now you know

Critical Customer Demographics Geography* Age* Sex Formal Education Community Courses/Events

Critical Customer Demographics Geography Occupation* Job Title Age* Continuing Professional Education

Critical Customer Demographics Geography Age Sex Formal Education Race/Ethnicity Credit Courses

Finding Your Seven Primary Market Segments Step 1: Get registration software Step 2: Run out your best 200 participants Step 3: Survey your best participants Step 4: Analyze your demographics Step 5: Get data for all participants Step 6: Now you know

Demographic Analysis Examples AgeExample 1Example

Example of Analyzing Demographic Variables CPE, Seminars, Conferences & Other Work-Related Events Example 1Example 2 Aerospace ( ) 216 Ambulance Services ( ) 4 9 Architects and Related (8712)2312 Attorneys ( )17 9 Bookkeeping Services ( )15 6 Bldg. Mat’l Suppliers ( ) 2 8 Carpet/Rug Cleaners ( ) 5 5 Consulting Companies ( ) 16 11

Example 1Example 2 Computer Consult. ( ) 8 20 Convenience Stores ( ) 2 9 County Gov’ts (many) 1 14 Engineers (8711) Hospitals ( ) 7 11 Insurance Adjusters ( ) 2 12 Landscape Contractors ( ) 1 9 Nail Salons ( ) 16 8 Printers ( ) 4 6 State Government (many) Tractor Dealers ( ) 0 9 TOTAL200200

LERN’s Market Segments –Associations –Churches –Community Colleges –Free Universities –Co-Op Extension –Museums & Gardens –Hospitals & Healthcare –Individuals –Private Businesses –Libraries –Military –Technical Institutions –Parks & Recreation –Public Schools –Universities –Private Colleges –Community Centers –YMCA, YWCA, YHA –Colleges & Schools within Universities

LERN’s Market Segments 1.Universities 2.Community Colleges 3.Associations –Associations were 1% of LERN customers; decision made to grow segment; 20,000 U.S. associations 4.Parks & Recreation

5.Public Schools 6.Colleges & Schools within Universities –Broken out from university growth focus 7.Technical Institutions –Broken out from community colleges to give priority

Finding Your Seven Primary Market Segments Step 1: Get registration software Step 2: Run out your best 200 participants Step 3: Survey your best participants Step 4: Analyze your demographics Step 5: Get data for all participants Step 6: Now you know

Ways to Collect Demographic Data Registration Form Phone Registration Mail Survey Confirmation Card/Letter First Meeting Contact

Finding Your Seven Primary Market Segments Step 1: Get registration software Step 2: Run out your best 200 participants Step 3: Survey your best participants Step 4: Analyze your demographics Step 5: Get data for all participants Step 6: Now you know

7 Primary Market Segments

Using Segmentation Data Identify which courses/events your top segments take and do more of them. Promote more to your top seven segments. Offer special deals to your top seven segments.

Survey them and survey them again. Find others that look like your best customers. Tailor promotions. Build new desirable segments.

Let LERN Determine Your 7 Primary Market Segments LERN’s Segmenting Tool determines primary market segments, carrier routes, repeat rate, LifeTime Value, and star customers, as well as allowing you to generate mailing lists. For more information contact Greg Marsello at

Thank You!