Nov 1, 2018

WHY???

- Jordi, Why do I have to learn Deeper Segmentation? Why Simple Segmentation, based on demographics (age, country of origin…) is not enough?
This is the question that some of my students, participants in a seminar, members of a team of a future disruptive StartUp… ask to me. Maybe YOU, reader of this OUR blog focused on Touristology, have the same question!
I will try to provide an answer. We can represent Deeper Segmentation with this slide...
We know that we are dealing with a deeper segment when it can be linked with three profit generators:
A) High level in the Maslow Pyramid (customized for business uses by Chip Conley). When you have your Tourists in the second and third level you can keep your price and you can find more ancillaries products to sell to them because you know what is really important to them. Usually, in simple segmentation leisure, business, Tourist low price orientated, millennials, generation Z… the main factor of differentiation is a low price. In deeper segmentation you only have a segment if they love to define themselves as… if they love to meet other customers similar or complementary to them… if they love to get a customized service!
B) You can create GROUPS both of Tourists and professionals (and future professionals) willing to sell, hire, to know more about them. Do you agree that is better to sell a product/service to a group that a single person? Do you agree that if you are able to seduce an international group to your place (Tourism destination enterprise) your place become a magnet for this segment? In simple segmentation a group (MICE) is a segment. In deeper segmentation you can create a group inside this segment!
C) You can use Long Tail. You can use specialized social networking sites, where you have to pay less or not pay at all, in order to promote or distribute your services. You also can create YOUR OWN Platform! In simple segmentation you have to use generic channels of promotion and distribution, always asking you for a higher commission and for a lower price for THEIR Tourists. In deeper segmentation you can use/create specialized channels!
-Jordi Why is this so important NOW?
Because… have you been seen an increase of competitors and substitute products/service lately (AirBnB, Uber, OYO Rooms…)? Do you think that this trend will increase or decrease? What will you do to remain competitive???
Because… do you believe that the number of people asking for lower prices will decrease or increase. Are you able to provide this price PROFITABLY? If the answer is yes, perfect. Otherwise…
Do you believe that new luxury is to get a customized service, enjoy something tailor made to you?
Do you believe that a trip has transformation power, that during a trip you can become a better person, outcome personal problems, increase your creativity…  increase your networking, get contacts around the world,  increase the bounds inside your family, your business, your StartUp…
In order to remain competitive, you have to add Deeper Segmentation in your toolbox. You need to build international communities based on specialized segments in your own Platforms!
Forget about offer “More for less”; “To provide a Quality/Good service”… Good, More, Quality are SUBJECTIVE terms! Be sure, that you provide a service able to better satisfy their specialized needs!
For that reason, you have to learn Deeper Segmentation, future of Touristology! Because (as a Teacher) I’m only good if you are good! If you will have a promising career in our beloved sector! If you are able to create the new, new disruptive StartUp! If you are the best minds working in the best sector ever!
I love to build Touristology minds!!!!