What are Market Segments? As a school leader, why should you care?
Did you hear that Home Depot opened a new store in Fayette County, Georgia, on April 3rd? Probably not big news to most; after all it seems as if a new mega store opens every day. This Home Depot opening is actually a newsworthy story, however, because it has one customer: Pinewood Studios!
Click here to read Atlanta Journal Constitution article: Home Depot to Open New Store for Georgia Movie Studio
This strategy represents a perfect example of an organization that has evaluated the market for new customer segments and diversified its value proposition. Recognizing that eventually the Home Depot standard store model will hit a market ceiling, executives looked to expand the customer base to grow revenue. Poised with an exhaustive network of suppliers, Home Depot was a natural partner for providing building and construction resources for Pinewood Studios. Companies needing an in-house supply chain of building products is a new market segment for Home Depot.
Innovative school leaders have the same opportunity to find customer segments and market trends to extend their value proposition.
Some questions that can be asked when looking into the impact of market segments include:
- What are the most critical customer segments within the school?
- Can the value proposition be extended to a new segment with a high return on investment and create opportunity for this segment to re-invest in the school?
- Is there another organization with whom the school could collaborate that would enable the addition of a new customer segment into the school's portfolio of constituents?
- Does the school have a program that could be considered a new trend-setting norm for the whole market, creating a leadership position in the market?
On-line learning academies are booming and many are producing incredible revenue for schools from a previously unreachable customer segment. In fact, one school president once stated that they were bringing in so much tuition income from this student segment that building projects were placed in a queue in order to minimize on campus construction impact.
Once you have determined which segment to target, develop a simple strategy to connect with that group and add new features as you learn about their needs. Learning those pain points may involve sitting in the seats of your classroom as a "customer" to experience your school from a new perspective. That has potential for a big ROI on your time!