Case Study / Segmentation

Local Shopping in the Mobile Era: New Types of Business Marketers and Shoppers

Challenge

Segment the local
shopping market.

Our client Facebook wanted to understand the challenges local business owners face when they begin using online marketing tools to promote their local shops. To best address the needs of shop owners in the digitized era, it was crucial to take a 360 degree view of the shopping landscape and assess the needs of both local shoppers and shop owners.

Client
Facebook
Industry
Digital
Methodologies
  • Shop owner and shopper segmentation using
    latent class analysis
  • Integration with behavioral data
Approach

We surveyed over 14,000  shoppers and shop owners.

In close cooperation with Facebook, we conducted two separate multi-country segmentations. Shoppers were asked about shopping behavior and motivations to shop locally, while the focus for shop owners was on selling initiatives and their digital marketing behavior. We used Latent Class Analysis as an approach to discover respondent segments with similar (latent) preference structures. To paint the full picture of the segments we enriched survey data with warehouse behavioral data.

Together with Facebook, we shared insights about the segmentation at ESOMAR Big Data World in NYC.
Impact

A deep understanding of
shop owners' needs.

Our research enabled extensive roadmap planning to optimize content and communication to different types of local shop owners. Insights were communicated by Facebook in various publications to help shop owners best fulfill shopper needs and learn best practices for using digital marketing tools. Findings were shared on the client’s marketer insights portal.