E-Commerce success 'needs segmentation'

11:10 16th June 2009

Segmentation is "key" to E-Commerce success in the recession, according to a report in The Harvard Business Review.

This is because of an evolution in consumers' values and their buying behaviour, Google Blog has said.

Tailoring market strategy by segment has been recommended to those wishing to attract customers who have been put-off by cost-cutting measures caused by the credit crunch.

Researchers who contributed to the article in the Harvard Business Review commented that psychological segmentation lets marketers target their shopping by an individual group's emotional responses to the recession.

Some of the segments included the slam-on-the-brakes people, who are likely to reduce all spending, comfortably-well-off consumers were seen to be secure about their ability to ride out the recession, a live-for-today segment for those hardly affected by the recession, and the pained-but-patient consumers - the largest sector who reduce spending in all areas.

Some of the recommended targeting tactics included using social networking websites to increase knowledge and "buzz" around products to create more interest.

Showcasing long-term value, quality and highlighting green or charitable initiatives was also recommended, as was creating a sense of urgency.

This comes as statistics from PriceWaterhouseCoopers showed that UK internet access will expand by 40 per cent next year.

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