Voices: the CMB Blog

We all have our own way of celebrating the fall season. For some, it’s apple-picking, leaf-peeping, or downing mug after mug of Pumpkin Spice Lattes. For me, the defining event of the fall happens not in Boston, but in Azeroth at the World of Warcraft’s (WoW) annual celebration of Hallow’s End. Held every year, this two-week, in-game holiday is both a great example of effective seasonal marketing and a demonstration of Blizzard Entertainment’s nuanced understanding of its customer base. Not to mention, it’s just plain fun.

Hallow’s End was introduced to WoW in 2005, and in the past ten years, it’s grown dramatically in scope and popularity. Although Blizzard hosts other in-game seasonal celebrations (Pilgrim’s Bounty, Feast of the Winter Veil, and Brewfest are just a few), Hallow’s End seems to attract more notice both in and out of the game than any of the others. 

Why all the excitement?  The success of Hallow’s End is due in large part to the fact that it offers something for every kind of player. Who are they, and what do they get out of Hallow’s End? Here’s a sampling:

• Mount Collectors: Hallow’s End heralds the return of the Headless Horseman, a formidable raid boss with a sweet ride. The Horseman’s steed, an undead horse with glowing green eyes and hooves, is one of the most coveted mounts in WoW, and it’s only available for players to win during this event. Those who grab one will gleefully parade their prize for the rest of the year, and those who don’t are doomed to count down the days until the Horseman’s return. 

• World Travelers: For many (myself included) the most compelling feature of WoW is the massive scale and breathtaking beauty of the game’s world. Sadly, high-level adventurers have little incentive to explore low-level areas. During Hallow’s End, however, Candy Buckets appear in inns throughout Azeroth, offering in-game currency and achievements for players who seek them out. The Candy Bucket hunt is a great excuse to revisit old haunts and to seek out some new ones. 
• Pet Battlers: Pet Battling is relatively new to WoW, but it’s become quite popular. Pets are small creatures or constructs that a player accumulates over time (ranging from the common Brown Rabbit to the exotic Anubisath Idol). Like WoW characters, pets can be leveled to acquire new abilities and then pitted against one another in gruesome fights to the death. Hallow’s End provides the opportunity for players to add seven new pets to their arsenal, including several creepy crawlies as well as a feline familiar who wears a witches’ hat and rides on a broom. Deadly and adorable! 
• Duelists & Jokesters: In addition to its various quests and collectables, Hallow’s End creates a communal space for players, who gather to celebrate in front of the flaming Wickerman (see him below in one of my own screenshots!). It’s unusual to have so many players assembled at once, and this combined with the holiday mood tends to lead to player dueling. For those who love to duel, Hallow’s End is a perfect opportunity. WoW also encourages player-on-player action during the holiday by offering holiday themed wands that can be used to transform other players into bats, ghosts, skeletons, and even (gasp!) humans.

And that’s not all! In addition to the above, other Hallow’s End offerings include raid-quality equipment (for dungeon delvers), garrison decorations (for garrison builders), and experience bonuses (for those leveling up).  Regardless of why and how you play, the holiday has something for you.

While World of Warcraft has had its ups and downs, it’s indisputably one of the most well-known and well-loved games. One reason is that Blizzard not only allows, but promotes and celebrates, a wide range of play styles during Hallow’s End and beyond. Ask yourself, does your business offer products or services intended for a broad customer base? Do you understand who they are, what they like, and what makes them different from one another? CMB can help! Contact us to talk segmentation and product development, and we’ll help you add firepower to your own arsenal. 

Happy Hallow’s End!

Liz White (BadDecision) is a level 100 Blood Elf Warrior, who loves blacksmithing, long flights over Azeroth, and running advanced analytics for CMB. Give her a shout either IRL or in-game, and she’ll be happy to help you optimize your build.

Hi Dr. Jay,

How many segments should we have in an optimal solution, and how long can I expect my segmentation solution to last?

-Katie M.

Hi Katie,

You’re not the only one who’s been asking about segmentation lately. Here’s my philosophy: you should always have at least one more segment than you intend to target. Why? An extra segment gives you the chance to identify an opportunity that you left in the market for your competitors. The car industry is a good example. If you’re old (like me), you remember GM’s product line in the 70s and 80s: “gas-guzzling land yachts.” Had GM bothered to segment the market, it might have identified a growing segment of consumers that were interested in more fuel efficient cars. Remember: just because you have a segment, doesn’t mean you have to target that segment. GM probably didn’t see this particular segment as viable until Toyota, Datsun (now Nissan), and Honda shipped small economy cars in greater numbers to the U.S. market. By that time, GM had shown up too late to the party with a competitive response.

As for how long a segmentation solution lasts? Segmentation schemes typically last as long as there are no major changes in the market. Why? Because segmentation requires strategic research that affects the full spectrum of marketing activities, including all 4 P’s of marketing (product, price, promotion, and place/distribution). One of the greatest catalysts for change comes from technological innovations. In the case of the car industry, those innovations include hybrid, electric, and driverless cars, as well as new competitors, like Tesla and Google. Tesla stands to change the market around distribution because its distribution strategy is unlike any other auto manufacturer. Many of its locations are in or near major shopping malls—not along the traditional auto mile where most dealers compete. While we often see other manufacturers display vehicles in the mall, potential customers would still have to go to a dealer’s lot to actually make a purchase, but Tesla removes this obstacle. This makes Telsa visible to potential customers who are not necessarily looking to purchase a car—a segment many traditional companies ignore.

Remember, segmentations are powerful tools—they can help your product development team generate products that appeal to your target segments, allow you to create stronger demand, and charge higher prices—but they won’t last forever.

Dr. Jay Weiner is CMB’s senior methodologist and VP of Advanced Analytics. Jay earned his Ph.D. in Marketing/Research from the University of Texas at Arlington and regularly publishes and presents on topics including conjoint, choice, and pricing.

Got a burning research question? You can send your questions to DearDrJay@cmbinfo.com or submit anonymously here.

Want to learn more about segmentation?

Gryffindor, Hufflepuff, Ravenclaw, or Slytherin? Brave, loyal, wise, or ambitious. . .which one are you?

For those of you unfamiliar with the Harry Potter series, these are the 4 houses that make up Hogwarts School of Witchcraft and Wizardry. When each young witch and wizard enters the school, a magical hat sorts them into one of four houses. Each house values certain attributes. Gryffindors value bravery and daring. Hufflepuffs value kindness and loyalty. Ravenclaws value knowledge and intelligence. Slytherins value ambition and cunning. The three main characters are Gryffindors (Harry, Ron, and Hermione), and most of the series’ villains come from one house in particular: Slytherin. Based on the rigorous questionnaire I completed on the Pottermore, I discovered I, too, am a Slytherin.

This past summer, I went to The Wizarding World of Harry Potter in Orlando, FL to immerse myself in the whimsy and magic of J.K. Rowling's world. Let me start by saying that if you’re a Harry Potter fan, the theme park is definitely worth a visit. The attention to detail is incredible. However, I have a bone to pick. I went to this theme park eager and willing to spend money on paraphernalia that would let me proudly represent my house. . .but I couldn’t find a single shirt that I liked. I went into every shop multiple times and was astounded (and disappointed) at the lack of Slytherin branded items. Gryffindors, on the other hand, had an expansive array of shirts, blankets, and cardigans to choose from.

Let my disappointment serve as a perfect example of why segmentation is so important. Without a useful segmentation, you can miss out on extremely valuable customers. It’s also essential in learning how to market to different groups of target customers with different needs.

As is the case with many brands, it’s possible Hogwarts’ houses aren’t just separated by character values, but also by consumer values and shopping habits. Maybe Slytherins are more price sensitive (though the Malfoys would demonstrate otherwise) or perhaps they don’t like to advertise that they’re cunning individuals (because that would make it a bit harder to be cunning). It’s also possible that Slytherins only make up a very small percentage of Harry Potter fans (we are special, after all), which would justify the lack of money and space Universal spent on Slytherin merchandise. Of course, it’s also possible that the opposite of all of this is true. . .but it’s more than the Sorting Hat will be able to tell you.

I did end up buying a patch with my house crest, and I let J.K. Rowling know that it’s time for Slytherins to get the respect we deserve. She has yet to respond.

Kirsten Clark is a Marketing Associate at CMB. Even though she’s a Slytherin, she closely identifies with Hermione Granger. In fact, in true Hermione fashion, she was once limited to asking only one question per day in elementary school.

The Sorting Hat might not be able to help you with segmentation, but we can.