Simmons Consumer Segmentation Systems

Technology has brought about immense changes in the lives of American consumers. Eight-in-ten U.S. adults access the Internet today and seven-in-ten use email; nine-in-ten Americans have at least one mobile device and four-in ten send text messages. While many Americans wholeheartedly embrace new technology and adopt it quickly, others take a bit longer to adjust before integrating new devices and technology into their lives. The Experian Simmons Technology Adoption segmentation system delivers the mindset of American consumers providing vivid detail of their use and adoption of technology. This new segmentation system is available in the Simmons National Consumer Study and includes the following four distinct segments:

• Wizards: “Technology is life.” Technology plays an important and broad role in Wizards’ life. These individuals cannot live without the Internet or imagine life without new electronic gadgets. Wizards are enthusiastic and adventurous users of new technology. Technology and new gadgetry helps them keep track of their social calendars and makes leisure time more interesting. This group still wants more from technology and their desire helps to move the industry forward. Wizards’ hunger for new technology fuels a future for potential new features, benefits and devices.
• Journeymen: “Technology is an important part of my life.” Journeymen have become skilled users of new technology. They are very confident with and knowledgeable about technology and are willing to experiment with few features, benefits and devices. Adoption of new technology allows Journeymen to continually improve upon the way they use it. The
  Internet is a source of information, commerce, entertainment as well as a means of connecting with others. While cutting-edge electronic devices may help Journeymen organize their busy lifestyles, new technology is not always their top priority.
• Apprentices: “Technology is changing my life.” Apprentices take advantage of technology, using the Internet often to get needed information. New gadgets enhance their lives to a large extent, but there is still room for them to expand their usage. Apprentices are willing to learn and incorporate new technology into their lives, but they are sensitive to price and often make their purchase decisions based on this rather than desire alone. In fact, affordability is one of the few barriers that prevent this group from buying the newest technology.
• Novices: “Technology has a limited impact on my life.” Novices are disconnected from emerging technology and resistant to adopting a new technology-focused life. They may have a desire for new digital products and services if they are simple and easy to use. This group does not understand what kinds of opportunities and experiences technology can provide them and, therefore, they have a very limited engagement with new technology.

Media companies, advertising agencies and advertisers need to know how the relationship between the American consumer and the U.S. economy is changing over time. That is, they want to know how consumers perceive their current and near-term personal financial outlook as well as how they feel about the future of the U.S. economy. These financial outlook-based attitudes directly affect the spending behaviors of the American consumer. Experian Simmons created the Economic Outlook Segmentation to help marketers to better understand how different segments of the U.S. population evaluate their personal financial situation and how marketers need to evolve their messaging strategies to make it all work in the real economy. This system consists of five unique clusters.

The five Economic Outlook consumer segments now available include:

• Confident Spenders: Consumers of this group remain largely untouched by the current economic downturn. They are confident about their current economic condition, financially secure and even willing to take investment risks. They are confident spenders. Their purchasing behavior has not been significantly influenced by the economic downturn; they continue their regular spending or even spend more on big- and medium-tickets items. Many have plans to improve their homes or buy/lease a new car.
  Outlook: Spending more, taking risks, and optimistic
• Fiscally Fit: Consumers of this group are more flexible and adaptive to changes in the market than others. They are fiscally fit and well positioned during the current economic downturn. They feel financially secure and their consumer confidence is high. They are optimistic about the future of the American economy and their own financial health. While they’re always looking for better financial opportunities, they generally do not take risks. They keep their spending under control with few big- or even medium-ticket items planned in the near future.
  Outlook: Cautious with spending, but optimistic
• Financial Nesters: While Financial Nesters are trying to maintain their lifestyle with –a “business as usual” outlook, they haven’t lost sight of the changes taking place in the American economy. This group has been padding their financial nest egg in anticipation of retirement and they intend to stick to that plan despite external events. Even though they don’t expect the American economy or their personal financial situation to improve anytime soon, they continue to purchase medium-ticket items, spend on household essentials, make home improvements and live their lives according to plan.
  Outlook: Continuing to spend, but not optimistic
• Facing Challenges: Consumers in this group are facing challenges and all the realities of the current economic situation. Their consumer confidence and propensity to purchase everything from big ticket items to household essentials is low. The financial situation of Facing Challenges is worse than it was 12 months ago and they are neither hopeful about their personal financial future nor that of the American economy.
  Outlook: Spending less and not optimistic
• Economically Indiferent: Consumers of this group are out of the mainstream. They are economically indifferent to the economic downturn. They do not have a sense that the economy is slowing down or getting better. Their modest financial situation is not a result of the current economy.
  Outlook: Holding spending steady to cutting back, not economically aware

Mobile devices have become an essential part of everyday life. Today, nine in ten U.S adults have at least one mobile device. The Simmons Mobile Users segmentation system and Mobile psychographic scales give clients superior insights into Americans’ world of communication, information and entertainment needs. The Mobile Users segmentation system and Mobile psychographic scales are available in the Simmons National Consumer Study.

The five Mobile Users consumer segments now available include:

• Mobirati: Mobirati represent the mobile generation. They grew up with cell phones and cannot imagine life without them. Cell phone devices are a central part of their everyday lives.
• Social Connectors: Communication is central in the lives of Social Connectors. Their cell phone allows them to keep up-to-date with friends and social events. The cell phone device is the bridge to their social world.
• Mobile Professionals: Mobile Professionals are multiple feature users. Their cell phone helps them keep up with their professional life in addition to their personal life. Members of this segment are more likely to own a smart phone. Their cell phone has become their all-in-one device for their communication and information needs.
• Pragmatic Adopters: Cell phones came to life for Pragmatic Adopters in their adult years. They are the ones who are still learning there are other things to do with your phone beyond just saying “Hello.” Cell phones are more a part of their everyday life than before but still more functional than entertaining to them.
• Basic Planners: Basic Planners are not into cell phones or the world of technology. They use their cell phone just for the basics. The cell phone is just another communication device for this group.

Food is an integral part of American culture and understanding Americans' food habits provides us with a greater understanding of consumer lifestyles, attitudes and purchase behaviors. The Simmons Food Lifestyle segmentation solution gives clients deep insights into Americans' diverse eating habits and attitudes about food. The Food Lifestyle segments are based on key dimensions such as attitudes towards cooking, motivation for eating healthy, interest in obtaining information from food labels and opinions on fast food. The Food Lifestyle segmentation solution is available in the Simmons National Consumer Study and includes the following five distinct segments:

• Convenience and Ease: The Convenience and Ease segment wants food that is fast, convenient and easy to prepare and/or eat.  They show little interest in cooking, healthy eating or nutritional value. These people prefer picking up a prepared meal to spending time cooking at home.  In a word, their relationship with food is summed up by: functionality.
• Reformed Traditionals: Reformed Traditionals have realized they should make healthier choices in food rather than letting convenience be the guiding force. They have no qualms about buying fresh food and have learned their ingredients should have nutritional value. Reformed Traditionals stay away from junk food, they watch their fat intake and are always looking for information about the ingredients and nutritional content of the food products they buy. Their relationship with food is characterized by healthy eating habits.
• Variety on a Budget: The Variety on a Budget segment is very busy and frequently eats on the run. They see frozen food as a convenient alternative to preparing meals with fresh ingredients and rarely plan ahead for their meals. This group expresses interest in gourmet food-as long as it fits in their budget. They have their own appreciation of the relationship between food and good health.
• True Foodies: True Foodies are passionate about food and spend a lot of time cooking at home. They prefer to buy organic food, want their ingredients fresh and buy environmentally friendly products. True Foodies tend to eat a variety of food, love to experiment with different cuisines and at the same time have adopted a healthy eating lifestyle. They have the most culinary expertise and have a love relationship with food.
• Weekend Cooks: Weekend Cooks have some interest in cooking, but are mostly sociable home chefs. When they can find some time in their busy schedule they like to cook for friends and/or family. For Weekend Cooks meal preparation should be less formal and less time consuming. Weekend Cooks like to indulge in food that they crave without checking on calories or nutritional values. There is no conflict between tasty food and healthy food for them; a ‘tasty way' is a ‘healthy way.' Their relationship with food is more like a leisure activity in itself.

Experian Simmons GreenAware^TM is a green segmentation targeting system designed to help you win in a marketplace estimated at $500 billion in 2008.  The GreenAware Segmentation Profiles include not just behavior but also attitudes, opinions, lifestyles and media usage.  Based on the distinctive mindset of consumers towards the environment, they can help marketers better understand four distinct consumer segments: 

• Behavioral Green Segment: This group of people thinks and acts green.  They have negative attitudes towards products that pollute and incorporate green practices on a regular basis.
• Think Green Segment: This group of people thinks green, but does not necessarily act green. 
• Potential Green Segment: This group neither behaves nor thinks along particularly environmentally conscious lines and remains on the fence about key green issues.
• True Brown Segment: They are not environmentally conscious, and may in fact have negative attitudes about environmental issues.

The GreenAware Segmentation System can be profiled against more than 500 product categories, more than 8,000 brands, more than 600 psychographics and all mass media in the National Consumer Study and SimmonsLOCAL.

The Experian Simmons National Consumer Study and National Hispanic Consumer Study are now accompanied with free segmentation systems--one of which is the Movie and TV Product Placement segmentation system. Experian Simmons divided Americans into four segments for movie Product Placement and four segments for TV Product Placement. The definition of each segment is listed below.

• Movie Emulators: This segment has the strongest connection to branded goods or services placed into the context of movies. They are engaged and aware of product placement, and the recognition allows this segment to remember, try and purchase brands or services they have seen in a movie.
• Movie Noticers: This segment notices branded goods and services placed in movies.  While they are more likely to remember the placed products, they do not feel that placement affects their shopping behavior.
• Movie Indifferents: This segment has mostly neutral attitudes toward Movie Product Placement.  They are disengaged for most product placement attributes but are slightly more likely to be influenced to buy when a character uses a product.
• Movie Rejecters: Movie Product Placement has the opposite of the intended effect on this segment. This group has negative attitudes toward branded goods or services that are placed into the context of movies.
• TV Emulators: This segment has the strongest connection to branded goods or services placed into the context of television shows. They are engaged and aware of product placement, and the recognition allows this segment to remember, try and purchase brands or services they have seen in a show.
• TV Noticers: This segment is devoted to TV and notices branded goods or services that are placed in television shows. However, they are less likely to remember the product and do not feel that placement in the television program affects their shopping behavior.
• TV Indifferents: This segment has neutral attitudes toward TV Product Placement.
  Members of this segment appear to be disengaged when it comes to noticing or remembering products placed in television shows.
• TV Rejecters: TV product placement has the opposite of the intended effect on this segment. This group has negative attitudes toward branded goods or services that are placed into the context of television shows.

The Experian Simmons National Consumer Study and National Hispanic Consumer Study are now accompanied with free segmentation systems --o ne of which is the Retail Shopper segmentation system. Experian Simmons divided American retail shoppers into six segments. The definition of each segment is listed below.

• Just the Essentials: Consumers who primarily purchase necessities; they know what they want before they go shopping and are not impulsive shoppers. Key Themes: no nonsense 
• Status Strivers: Shopping is fun and recreational; they like to browse as much as buy; willing to travel to stores and spend the money and time necessary to keep up with trends. Key Theme: image 
• Mall Maniacs: Not just consumers, they are "try-sumers"; like to try new products, stores and styles; connect and interact with preferred brands; shopping brings enjoyment to them. Key Themes: attention, approval, quality and image
• Upscale Clicks and Bricks: Knowledgeable consumers who buy in-store or online; always carefully research purchases online first, shop around and compare prices before buying. Key Theme: good deals
• Virtual Shoppers: Go for the bargains and the Internet helps them find discounts so they don't pay full price. Key Themes: affordability and ease
• Original Traditionalists: Loyal to their brands, stores, services, and their country; knowledgeable and the most environmentally responsible group who incorporate green practices on a regular basis. Key Themes: experience, trust, and reliability

Growing use of viral campaigns, social media networking and other innovative new marketing strategies highlight the unchanged power of word-of-mouth advertising. Experian Simmons Tipping Point allows you to precisely target the most influential consumers and tailor your messages for each of the different Tipping Point Segments.

Created through a partnership with Malcolm Gladwell, author of The Tipping Point: How Little Things Can Make a Big Difference, the Tipping Point Segmentation System exponentially leverages your marketing spend by focusing on the small group of influential people, approximately 13% of the U.S. adult population, who take an idea, trend or behavior and help it spread like wildfire.

Through the Simmons National Consumer Study, the key characteristics of each Tipping Point Segment were defined.

• Connectors: Possessors of an extensive network of friends and acquaintances, these are the individuals who provide the links between people.
• Mavens: Recognized by their peers as reliable information sources who give the facts and let people make their own decisions.
• Salespeople: Persuaders who can motivate people to believe or try things through their energy and their enthusiastic personality and style.
• Innovators: People who are in at the birth of a new trend, they embrace whatever can set them apart from others, pioneer new products and categories, and respond to opportunities to provide positive change.

The Experian Simmons Waistband Segments give clients unparalleled insight on the differences and similarities between consumers based on their body characteristics: food preferences, self-image, health, psychographic profiles, lifestyle characteristics, and media usage preferences.
 
Based on CDC/NIH guidelines, Experian Simmons classifies respondents based on their BMI. Experian Simmons' Waistband Segments provide an in-depth understanding of consumers by four body types:

• Underweight
• Normal
• Overweight
• Obese

Applications:

• Apparel retailer: better meet consumer needs and expectations in terms of size mix and styles
• Quick-service restaurant: tailor menu and specials based on food preferences and health concerns
• Healthcare: determine which segments are most at risk for specific health ailments
• Automotive: understand how auto preferences differ based on physical characteristics
• Travel: find which segments are the most likely candidates for specialty destination trips
• Magazines: use the segments to understand how to target health and nutrition advertisers

Attention to health is on the rise and many Americans are making changes to their diet and exercise routine in hopes of achieving a better balance and overall well-being. But with health information seemingly everywhere from the headlines to social networking sites to the blogosphere, understanding consumer attitudes and behaviors on health-related matters is an increasingly uphill struggle. The Simmons Health and Well-Being Segmentation helps marketers cut through the fat to precisely understand the state of health of their consumer targets by providing them with vivid insights into consumers’ health and diet attitudes and motivations, behaviors and lifestyles. The system consists of five segments:

The Invincibles: Unconcerned about their health, eat what they want, almost never get sick but use OTC meds to solve all of their problems if needed.

• Unconcerned about health 
• Non- preventive
• Least health active
• Younger and busy 
• Fast food fans

Weight Reformers: Constantly struggling with healthy food choices - healthy vs. unhealthy eating, trying to find an easy and effective way to improve their health.

• Struggle to break unhealthy food habits
• Constantly trying to lose weight 
• Try different diets
• Seek and rely on health information try to exercise more 
• Try to use preventive approaches
• Active health manager 
• Tend to be overweight

Trusting Patients: Rely on doctors and meds, but aware of and follow healthy eating and lifestyle practices.

• Active health manager
• Good patients
• Trust doctors
• Believe in pills and medications – supplements/OTC/ Rx 
• Healthy eaters 
• Use preventive approaches
• Eco-friendly 
• Health information seekers
• Buy fresh and natural ingredients
• Tend to be older

Healthy Holistics: Preventive approach is essential, committed to exercise, and making the right healthy choices when they shop or eat, which helps them to stay in good health.

• Use preventive approaches 
• Trust homeopathic remedies 
• Active health manager 
• Eco-friendly 
• “Green” — buy organic/natural food 
• Healthy eaters
• Informed
• Exercise regularly and frequently
• Lke to cook
• Influencers

Image Shapers: Health and image are allied together for them. Looking good means being healthy. Convenience and healthy choices can—and do—go together for this group.

• Health and image leaders
• Tend to be vegetarians 
• Brand loyal
• Young and busy
• Precooked and fast food regulars
• Believe in pills and medications