1. Market Segmentation Lifelong Learning 2007 Presented by Greg Marsello

2. We Must Segment the Market …80/20 Principle

3. 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.

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

5. 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

6. Chart 1: Organization Participants

7. Chart 2: Net Income

8. Chart 3: Organization Resources

9. Chart 4: Efficiency Strategy

10. 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

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

12. 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

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

14. 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

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

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

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

18. 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

19. Demographic Analysis Examples AgeExample 1Example 2 18-202010 21-252070 26-302030 31-352020 36-402040 41-452010 46-502010 51-55205 56-60205 61-65200

20. Example of Analyzing Demographic Variables CPE, Seminars, Conferences & Other Work-Related Events Example 1Example 2 Aerospace (3812-01) 216 Ambulance Services (4119-02) 4 9 Architects and Related (8712)2312 Attorneys (8111-03)17 9 Bookkeeping Services (8721-02)15 6 Bldg. Mat’l Suppliers (5211-26) 2 8 Carpet/Rug Cleaners (7217-04) 5 5 Consulting Companies (8742-01) 16 11

21. Example 1Example 2 Computer Consult. (7379-05) 8 20 Convenience Stores (5411-03) 2 9 County Gov’ts (many) 1 14 Engineers (8711) 14 10 Hospitals (8062-02) 7 11 Insurance Adjusters (6411-02) 2 12 Landscape Contractors (0782-04) 1 9 Nail Salons (7931-02) 16 8 Printers (2752-02) 4 6 State Government (many) 12 16 Tractor Dealers (5083-04) 0 9 TOTAL200200

22. 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

23. 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

24. 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

25. 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

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

27. 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

28. 7 Primary Market Segments

29. 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.

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

31. 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 marsello@lern.org.

32. Thank You! marsello@lern.org marsello@lern.org