Globally segmenting the 'buy now pay later' user market

Global, multi-market program and activation

The issue

In the midst of exponential expansion, Zip is looking to understand the potential size and makeup of the Buy Now Pay Later (BNPL) customer of tomorrow). To date, all targeting has been based on existing customer knowledge, however to maintain their growth trajectory, Zip wanted a broader view of the market to understand the potential for customer acquisition and where this will come from.

What We did

Starting with the Australian market, we conducted a comprehensive three phase fieldwork program (qual / quant / qual including online bulletin boards to understand the broad needs of the market, a n=4,000 independent sample online survey and finally deep dive focus groups into four target segments to brings these to life.

Importantly, 50% or more of the focus of the program was in the activation; reporting, workshops, segment profile passports and Australian playbook. We also delivered a segmentation slotting model to map the segments back to the almost 3M existing customers on the Zip CRM. This was aided through conducting an identical online survey of n=2,100 Zip customers from the Zip customer base. This sample was not used to identify the segments to avoid skewing the market based outcomes, however provided greater insight given the depth of financial data available on their CRM.

The outcome

The segmentation has resulted in significant engagement and alignment among the various teams in Zip. The final Passports and Playbook are to be delivered in October 2021 with the USA leg of the program to begin in Q4 and UK in Q1 2022.

The approach was designed to provide a global segmentation that could be applied and activated at a local level. The Australian work has been designed and applied in this way to ensure application around the globe.

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