Clean Behavioral Segmentation from
down and dirty in the mud
Have you noticed those Facebook posts from your old college mates boasting about their latest weekend achievement of being drenched, covered in mud, frozen and electrocuted with 10,000 volts?
If you haven’t, keep an eye out as you soon might, the emergence of so called “Endurance Mud Runs” has been something of a phenomenon since they started in around 2010. Six, twelve, even eighteen mile courses, involving rugged cross-country runs over challenges and obstacles with names like Arctic Enema, Electroshock Therapy and The Boa Constrictor. Originally designed by Special Forces, Mud Runs have become big business with evangelistic customers happily paying for the privilege of exhaustion coupled with electrocution!
Background and Objectives
Our client, one of the world leaders in the Mud Run industry, has been riding a spectacular wave of growth in this new category. They realized that until now, all of their communications had been focused entirely on generating new customers, no one was communicating to existing customers to encourage loyalty and repeat participation.
Kadence International USA was commissioned to identify prospects with a high probability of becoming a repeat runner and in turn develop strategies to target them.
A Behavioral Segmentation approach was taken when interviewing recent runners. A random sample of 1,000 runners was taken from the client database and each was interviewed about their entire customer journey to the event, from initial awareness to event travel. Each was questioned about their recent on-course experience, then their propensity to repeat such an event. From this we segmented according to repeat disposition:
- One-and-done – unlikely to repeat
- One-and-one-day – passive commitment to the possibility of repeat
- One-and-again – high probability of repeat
Mapping the Segments
Once segments were created we could then identify key signatures that were associated with high repeat disposition and create an algorithm which looks at things like: distance traveled to the event, days spent at the event location, merchandise sales and more, then prioritize customers that would be more susceptible to communications that encourage repeat, therefore increasing media ROI.
In addition, we could compare on-course experiences of the one-and-done segment vs the one-and-again segment and identify product changes that would increase repeat and also messaging that would encourage repeat behavior and deepen loyalty.
The future is certainly bright for the Endurance Mud Run industry, but the market is getting highly competitive and the eventual winners will be the ones that best balance runner acquisition and runner retention. Our client was delighted with the consumer insights we brought to the strategic table and have offered each member of the Kadence International USA project team a free ticket to a Mud Run of their choice.
So far none of us have been brave enough to take up the offer … yet!
For more information contact a member of our US Insight Team here.