Segmentation based selling worked for one of the longest periods (1920-1980) as per business historian Richard Tedlow. Since 1980 it’s been hyper-segmentation, which essentially followed the principles of segmentation but on a smaller group.
However, the rules of the game have changed. It’s all about being precise and hitting straight a single or a few cohorts that are most suitable for the product or service. There is a strong reason why cohort based selling is very relevant and important now for many products especially smart devices including smartphones. Let’s try to understand this with Xiaomi 14 Ultra as an example.
We analysed the various personas of customers who purchased Xiaomi 13 Pro, the predecessor of Xiaomi 14 Ultra to understand who would be interested in this smartphone. This was done by analysing the reviews of verified users for this phone on marketplaces. There were 3 distinct buyers identified during the analysis.
- Photography upgrader: This cohort of users was looking to upgrade their smartphone photography experience and zeroed on Xiaomi 13 Pro as the device that could offer them enhanced photography experience using a smartphone.
- Smartphone upgrader: This cohort of users was looking for an overall upgrade of the smartphone experience. The value conscious cohort also wanted to be mindful of the money they were spending on the upgrade. The upgrade for them did not mean affinity or ownership of any particular brand.
- Professional photographer: This cohort represented the users who are professional photographers including photo enthusiasts and wanted the pro experience in a smartphone form factor. This cohort uses a DSLR camera and is well versed with the photography nuances including having understanding of what Leica association means. These are street photographers who want a perfect picture without carrying their DSLR all the time everywhere.
Now if you notice, these 3 cohorts of users have completely different reasons for which they purchased a Xiaomi 13 Pro and at the same time, they have different level of understanding of photography, the essential area where this smartphone brings in great value through Leica association.
Similarly, for Xiaomi 14 Ultra, there will be these kinds of cohorts of users who will have divergent reasons of considering the phone along with the existing understanding and knowledge of photography, Leica and the smartphone upgrade. If Xiaomi goes ahead with a vanilla messaging and outreach through its campaigns and other initiatives to these three different cohorts, it won’t convince them to trigger sales.
What Xiaomi should do instead is to have different communications for these cohorts along with defining the channels and mediums for outreach as well as sales. For example, for photography upgrader, Xiaomi needs to explain what Leica means. For them it isn’t sufficient to know that there is an association of Xiaomi with Leica. They need to be educated about Leica and photography.
The 2nd cohort of smartphone upgrader needs to be told about the entire upgrade experience and the value as well as upgraded hardware they will get through Xiaomi 14 Ultra. Of course, they can be told what additional experience they will get in photography because of the Leica collaboration. But the main emphasis here should be on the overall upgrade this phone offers.
Finally, the professional photographer / photo enthusiast needs to be communicated the value of convenience this smartphone brings in. This cohort already knows Leica and its importance in the world of photography. They simply need to be told what unique Leica features are in this phone and how conveniently Xiaomi 14 Ultra can help in professional grade photography, which they are used to, in this form factor making their street photography so convenient. They need not to carry their DSLRs everywhere.
The cohort approach also means that there will be different channels and mediums defined for communicating with the designated cohorts and finally the sale to be fulfilled through the most appropriate channel suiting the comfort of the cohort. For instance, in the above cohorts, photography upgrader needs to be engaged offline through photography workshops in Xiaomi exclusive stores where Xiaomi experts can educate them about the photography upgrade. Similarly, for a photography expert / enthusiast, online medium should suffice as the audience is already aware of photography specific features and understands the granular aspects that Leica association brings in, for this smartphone.
Going forward all smartphone and smart device makers will have to adopt the cohort selling which needs to be backed by a data driven approach to first identify the cohorts, measure the potential of these cohorts, identify the appropriate messaging and the mediums and finally engage with the cohort to drive them to the most relevant and appropriate channel. That is how all the channels – offline/online, of any brand will result in optimised business by complementing each other and not eating into each other’s business potential.
