Loyalty Status : Groups individuals according to their level of loyalty to the product. Hard core loyals always purchase the product / brand in question. Whilst Soft core loyals will sometimes purchase another brand, and Switchers will not specifically seek out a particular brand, but rather purchase the brand available to them at time of need, or that which was on sale. 6. Buyer Readiness Stage : Groups individuals according to their readiness to purchase the product.
This segmentation model is particularly useful in formulating and monitoring the marketing communication strategies employed to move consumers towards purchase of a product or brand. Role of Segmentation: Segmentation is the first step towards customer understanding, which allows organisations to build healthy relationships with their customers. Money is made by keeping customers, and the whole idea of segmenting customers in order to build customer relationships is to turn it into a mutually satisfying relationship, says Ovum analyst (David Bradshaw, 2000).