To efficiently scale your business you must focus all your efforts, not on a wide universe of potential customers, but on a specific subset of customers that resemble your best customers. The key to doing this is through customer segmentation.
This process is an important step in building your value proposition and allows you to clearly define the various types of customers you have for your business.
During this procedure you divide clients into groups based on common characteristics so that you can market to each one assertively.
Customer segmentation can help you in many ways, but these are the 3 most important:
>> You can develop retention strategies effectively.
>> You manage to provide an optimal experience for your customers.
>> And you manage to perfect the orientation of your ads.
It is further differentiated by the following types of customer segmentation that can help you target, attract and sell more effectively and accurately:
- Demographic: Considers parameters such as age, generation, gender, education, occupation, income, marital status or ethnicity.
- Geographic: Customers are grouped by country, state, region, climate or market size.
- By Behaviour: Consider how customers interact with your brand (their buying behaviour itself).
- Based on the client’s route: Apart from understanding the preferences and interests of your customers, this is where you know what stage of the purchasing process they are in.
Segmenting your customers can help you be essential and valuable to your audience and also stay ahead of your competition.
Four approaches to customer segmentation
In an article by Joel Rubinson (a marketer who has advised major brands such as Loreal, Coca-Cola, GFK, Campbells and others), he comments that there are four key approaches to segmenting:
1.Momentary focused segmentation
In this digital era “the moments” for a company, is of great interest because users are in full search of different content, terms or products.
And it is in that “moment” where they leave a trace that serves us to create different marketing strategies, with the aim of achieving the purchase.
It is those particular “moments” that, for a car company, this boy becomes a potential customer. Forming part of a segmentation of key clients so that he receives information from the dealers (offers, advertisements on different social networks, etc.)
2. Segmentation focused on types of buyers
Here we are talking about how our prospect can become our future buyer.
This is where we take the time to ask ourselves how we can capture that prospect, based on the product or service we offer.
For example, the client: does he like to plan his purchases or decide in the shop, does he like to explore to find new ideas for his meals, does he like to try new products, etc…
All this has clear action implications, for example, if you have a physical shop the way you present a product influences or how you have designed your shop, even some specific promotion you have presenting it in a personalized way.
This type of customer segmentation is increasingly carried out through mobile applications.
3.Interest and value focused segmentation
This form of fragmentation consists of analysing the interests, values and lifestyle characteristics that are available through social profiles such as Facebook or in search engines such as Google, in order to create segments based on the aforementioned characteristics.
That way you can create a customer division and implement a specific advertising campaign, thus measuring the response you get.
4.Segmentation aimed at brand loyalty
When we talk about brand loyalty, it is when customers have previously come to know something about us, bought from us and thus fallen in love with our product or service.
How they have come to know us has been thanks to the implementation of strategies created for example in Google Adwords, Facebook Ads or even SEO.
It is here as a company that we begin to create sectorised campaigns based on the information obtained of clients, helping us to create solid brand loyalty by means of communications such as newsletters, webinars, advertisements on different websites, etc.
Start creating your own customer segmentation and measure your results
Remember that it is a process that divides your clients into groups, depending on location, age, interests and social status.
It is a way of creating a single approach for different groups of customers, rather than generally covering all of them.
Currently, the way of doing business is based on applying some psychology methods, in order to know the prospects/clients and manage to categorize them correctly to achieve the desired impact. This in itself will help you understand and capture the attention of each type of client that you consider valuable to your company.
Keep in mind that it is a process at the beginning and you will probably focus on several customer segmentations during the creation of your business.
However, it is important that you use tools to help you create these segments, so that you can effectively follow up to get them to trust and therefore understand you.
One tool can be Efficy, have you tried it?
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