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What Is Customer Segmentation?

The process of determining the best customer segments begins by making some assumptions. For example, what do your customers tend to buy? Do they spend more money than others? Do they come from a specific geographic location? There are several types of information that you can find out about your audience. Segmenting them becomes much easier if you can make assumptions about your customers. For example, you might know that some customers are loyal and spend a lot of money over a long period. Others may be good but not spend a lot. And some customers may pay little over a short time, but loyal ones won’t spend much.

Customer Segmentation

Identifying your best current customer segments

When segmenting your customer base, you want to create highly relevant products and experiences for each segment. You can target a single segment, or multiple ones, depending on your business size and resources. For example, younger companies may focus on one segment, with adjacent moves to expand into. Using this information, you can prioritize the most profitable customer segments for Stage 3.

Using competitor websites is an excellent way to determine your customer base’s demographics and needs. By analyzing their website, you’ll get clues to the content and messaging appropriate for each segment. For example, the Solutions drop-down menu on the ActiveCampaign and Miro websites lists five verticals and three types of teams. These details will give you a good starting point for your research.

Identifying your buyer personas

Customer segmentation is a crucial marketing component, so it is essential to understand how buyer personas differ. Buyer personas are essentially profiles of your ideal customers. They are your target audience, and your product or service must appeal to them. This process begins by collecting existing customer data. Most businesses store this data in social media, website analytics, or digital tools. Some even have hard-copy signup forms in their stores. Social media and website data can also help you understand the behaviors of your customer base.

Buyer personas should have names that are memorable and interesting to your audience. Make them look like real people by identifying their demographic and job title. For example, a buyer persona might look like Karla Kruger, a young, married woman with a successful PR career who loves to travel to new destinations and stay in boutique hotels. Including quotes about your buyer persona is a good idea as well.

Identifying your psychographic segments

Psychographic segmentation can give valuable insights into your target market and reveal personal contributors to buying decisions. However, it’s not as straightforward as it sounds. For example, you may find that many consumers interested in yoga also enjoy other health-related topics. So how can you use psychographic segmentation to create more tailored messages? You can get started by researching to discover which of your audience’s characteristics are most important for your business.

While traditional market segmentation is essential for a successful marketing campaign, it is now more important than ever to consider the personality of your customer base. Today’s consumers tend to group themselves into smaller tribes based on their interests. Their social profiles, for example, show their interests. In addition, their purchasing habits are closely tied to their personality types, so it’s essential to understand how each group reacts to different marketing.

Identifying your geographic segments

Identifying your geographic segments when selling to customers is an excellent way to target your marketing efforts. This strategy requires fewer data points but can lead to tangible ways to target customers. Geographic segmentation helps you develop awareness and engagement within a region. Many examples of geographic segmentation include neighborhoods, states, countries, and even time zones. For example, if you sell to customers in the United States, you can target customers within their home region.

If you are selling to rural residents, you must determine what type of demographics will be most likely to purchase your product. For example, rural residents may be more likely to buy a lawnmower than customers living in an urban environment. By determining these differences, you can develop your marketing strategy accordingly. This is a beneficial strategy when it comes to marketing if you want to make more money.

Identifying your age and gender segments

Identifying your age and gender segments will help you understand which audience segment-best meets your needs. For example, generational groups are typically similar. Having grown up with similar experiences, the members of a generation share identical values and characteristics. As such, they are targeting generation X with the same offer as baby boomers are unlikely to produce the desired results. Likewise, it would be best if you tailored marketing strategies for each group to match the different needs of each age segment.

John Paul
John Paul
John is a full-time blogger and loves to write on gadgets, search engine trends, web designing & development, social media, new technologies, and entrepreneurship. You may connect with him on Facebook, Twittter and LinkedIn.


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