The Brief
Progressive undertook a project to refresh and update the customer segmentation model used by VisitScotland's UK and Ireland marketing team in 2010. This model uses a number of demographic and attitudinal variables to segment the UK market according to their attitudes towards holidays and their relationship with Scotland in particular.
Our Research Approach
The research involved undertaking two stages of robust quantitative research. The first stage was a telephone omnibus survey with a representative sample of the UK population (sample size 2,189), which was used to obtain a general overview of holiday behaviour in the UK and Scotland, covering average spend and number of nights spent on holiday. This stage also allowed us to determine the relative sizes and demographic composition of the segments. Stage 2 was an online survey with a combination of ‘warm' and ‘cold' panels (sample size 5,264). This stage was used to gather more detailed information within each segment, covering attitudes, and detailed information on holiday behaviour and media preferences.
At a general level the research highlighted a number of shifts in the holiday landscape since 2006, in particular noting changing attitudes and behaviour in relation to holidaying in Scotland and the wider UK.
In terms of refreshing the segmentation model, comprehensive statistical analysis was undertaken to uncover whether the segments had changed since the model was first developed, and to identify where these key changes were and what their impact would be. Detailed analysis was also required to determine the impact of moving from Mosaic 2003 to Mosaic 2009 classifications within the existing segmentation model. Further analysis was undertaken to determine the optimum segmentation solution using the new Mosaic 2009 classification in conjunction with new information learned from the quantitative research. This involved exploring various cluster solutions as well as examining sub-groups in depth.
The Output
The results from the project are of strategic importance to VisitScotland, as the segmentation model is applied to marketing strategies and activities across the business. Our analysis identified some changes from the model that was developed in 2006. Consequently a key element of presenting and analysing the main findings was to explain what these key shifts were and the implications for the marketing teams using the segmentation tool. The results were presented to a number of audiences including VisitScotland's UK and international marketing teams and media agencies.