The Death of Consumer Segmentation? PFFFFT!

At Ad Age, marketing analytics guy Michael Fassnacht wonders if customer segmentation is no longer a good strategy for three reasons:

1. "first is that the rather static definition of consumer segments is becoming less reliable in our extremely volatile society, especially in today's economic climate."

Yes, and? Meaning, sure, consumers' income positions and buying behavior are changing more rapidly than normal, but ... what's the point here? All that means is that we have to build flexibility into our segments and develop our strategies in the context of a more (not "extremely" ... PFFT!) volatile market.

2. "Second, consumers are never just part of one segment. Rather, they feel, rightfully, that they belong to a multitude of segments. They can be the professional executive in the morning, the boyish sports fan in the evening, the churchgoing father figure on Sunday. All three are the same human being, but represent three different consumers and mindsets."

Oh brother. How embarrassing is this? It's another "yes, and?" What matters is who are they as they relate to you and your market? And having the other seemingly ancillary insights can actually assist with crafting potent offers and positioning for relating in your market or business. MF's argument here is nonsensical.

3. "Finally, consumers are gaining more control of any marketing activity. And they like it. Yes, they like to receive relevant information, but even more, they prefer to choose their own relevant information."

Now this is actually a good point and worthy of consideration. But it's not an either/or. Increasing numbers of consumers, yes, get involved in their purchases and purchasing in such a way as to "self-segment" and customize their information mix. But the majority - the vast majority - do not. Will they? Increasingly, yes. But I doubt the likelihood that we will get to a point where segmentation is not a potent strategy (to wit, the increasing demand for consumer data miners ... it's been identified as one of the top recession-proof careers right now).

Now, there is an investment threshold for segmentation to be sure. You can waste a lot of money very quickly. But to give it up for worthless doesn't make any sense.