Most retail brands collect consumer data as a chore, very few of them actually evaluate the data collected to make it valuable for strategy making or understanding consumer’s needs. Makeup brand Birchbox however is different, it collected comprehensive market segmentation data in 2014 and is acting on the lessons learned from the observations of the consumer study. Birchbox divided their customer base into eight categories, over half of them however fell in a category named “discerning multitasker”.
The women in this category feel underserved by other makeup brands, they also find the sheer volume of beauty products available in the market overwhelming. These women have turned towards Birchbox, with an aim to find a brand which curates and simplifies beauty for them. Birchbox observed that women are not spending to their full potential because of the complexity of other beauty brands, thus realizing that they are competing with non-consumption. Birchbox has created some very loyal customers by understanding what they truly need. Co-founder Katia Beauchamp believes the company has identified a customer segment, which has been ignored for long, it will unveil a new mission and vision around the results of the consumer data.