Market Segmentation & Personas
At its core, market segmentation is the practice of dividing your target market into approachable groups. Market segmentation creates subsets based on demographics, needs, priorities, shared interests, and other psychographic or behavioral criteria used to understand the target audience better. For example, for our company, we segment members based on the types of firms the financial advisors own (solo, partnership, or enterprise) and what business phase they are in (preparing, implementing, building, or scaling).
User personas have goals and characteristics that represent the needs of a larger group of users. Persona descriptions include behavior patterns, goals, skills, attitudes, and background information, as well as the environment in which a persona operates. These user personas also use context-specific details related to advisor firms and membership interaction.
The Early Adopter
Early adopters make up 13.5% of the market share. They are the second phase of product purchasers following innovators (2.5% of market share). Early adopters tend to be the most influential people within any market space, and they will often have a degree of “thought leadership” for other potential adopters.
Early adopters will generally have a reasonably high social status (which in turn enables thought leadership), reasonable access to finances (beyond those of later adopters), high levels of education, and a rational approach to risk.
Our organization tends to have more early adopters than the general market due to members being entrepreneurs.
The Fast Follower
Fast followers make up 35% of the market share. A Fast Follower is a person that quickly adopts products once the early adopters have shown favor in them. They also collect research and data to assist in decision-making. While being ahead of the buying curve, they are still practical thinkers and are very loyal to the brands they use.
To get a fast follower to adopt a product, the product has to have positive reviews during beta testing. They also have to understand why the product positively affects social industry influencers.
The Late Adopter
The late adopters also make up 35% of the market share. These users need to see the value as much as they need to see social proof. They aren't interested in the result from the beta testing group because they might not even be aware of what beta testing is, to begin with.
Late adopters depend on the opinions of people they trust more than the proven data. If they are on the fence about purchasing a product, offering a free trial or a reduced price will get them to make the jump over.
Last, we have our laggard, which makes up 14% of the market share. This is the last group to adopt a new product if they even do. To get a laggard to adopt a product, they have to see social proof from the early adopters and then the fast followers' data. They also need to see that the masses have adopted several generations of that product while also waiting to lower in price. Typically, many products will be on the market by this point, driving down the cost and increasing competition.
Laggards will adopt a product kicking and screaming, so when they finally leap, they will need an immense about of support from their friends and family, as well as from customer support and coaching.