Outcome-Based Market Segmentation
Tony Ulwick
Jan 15, 2011
Companies rely on market segmentation to discover hidden market opportunities, enabling them to create products that solidly connect with customers. This thinking has been put forth by leading academics for nearly 40 years, but how is it accomplished?
In his book, "The Innovator's Solution" Harvard Business School professor Clayton Christensen cites an established market segmentation methodology that achieves these objectives. It was created by Strategyn founder and CEO Tony Ulwick, and it enables companies to create breakthrough products by segmenting markets around the "job" the customer is trying to get done.
What Ulwick discovered is that customers consider between 50 and 150 metrics when assessing how well a product or service enables them to successfully execute any job. These metrics (or desired outcomes) are the customer’s needs. When segmenting a market around these outcomes, the natural order of market segmentation is revealed. While one segment of customers may value specific outcomes related to speed, another segment may value outcomes related to accuracy, ease of use or safety. Knowing just what those outcomes are, companies are able to consistently create segment specific solutions that help customers get a job done better, making success 5 times more likely.
Download this white paper to learn about Strategyn's outcome-based market segmentation methodology, how Motorola used it to reinvent its radio market, and how the methodology can help your organization. Contact Strategyn or call (866) 729-8400 to speak to someone directly on how Strategyn can help you discover hidden market opportunities.
