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A customer segmentation strategy is beneficial to your marketing department by allowing you to talk to your customers the way they want to be talked to, making it easier to track your return on investment (ROI) and allowing you to achieve a sustainable competitive advantage.
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3 REASONS CUSTOM
SEGMENTATION IS GOOD FOR YOUR BUSINESS
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(noun)- The practice of dividing a company’s customer or prospect base into groups of individuals that are of similar types in specific ways relevant to marketing, such as age, gender, interests, spending habits, and media preferences, in order to plan how to sell to each type more effectively
customer segmentation:
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1. Talk to your customers the way they want to be talked to.
2. When properly done, a customer segmentation
strategy lends itself very easily to effectiveness measurements (aka ROI).
3. It’s the basis for sustaining competitive advantage.
A customer segmentation strategy is beneficial to your marketing department.
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Treating every customer the same means that you’re overlooking opportunities to capture disproportionate share in your target audience…
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• A lunch crowd consisting mostly of business people prefer speed of service. •An evening crowd consisting of families wants something to keep the kids occupied. Two very different audiences.
Restaurants
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A customer who shops your multiple channels: • Outlet locations • Online • Traditional stores Would appreciate being recognized and given personal recommendations on your website because they know they’re a loyal core customer.
Retail
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Aligning your sales and product delivery process with a customers’ buying and consumption process makes it easy to choose you once they’re ready to buy.
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Custom segmentation provides the insights into consumer’s needs and preferences across a wide range of dimensions that allow you to evaluate the fit between how you serve your customers and how they want to be served.
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Transactional-based segmentation allows for customers to jump from segment to segment. If you’re in the hardware business, when you buy a new home, you’re in the growing segment. Then, once you get everything done, you’re in the declining segment… The base is always changing.
Why does custom segmentation make it easier to track ROI?
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Because custom segmentation is attitudinal, it’s hard to put into practice. Senior Executives seem to deem it interesting, but not valuable. If you’re able to execute and maintain a strategy that includes attitudes, demo, life stage, financial indicators, you’re likely to outperform any competitor that doesn’t have those insights.
Achieving a Sustainable Competitive Advantage
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Does your company have customer segmentation?
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