on business | How To Make Customer Segmentation For Your Business

How To Make Customer Segmentation For Your Business

Have you determined the segmentation of your customers, potential or real? In today's post, we will talk about the target audience, market segmentation and some strategies that can be very useful, not forgetting the tools that help you and your customers know.

 

What is your target audience and how to differentiate it?

The target audience is a group of people who need our products and come to us before the competition. He is the ideal recipient, but you have to know how to find him, where to look for him and what you are going to tell him. It is better to carry out this type of study before focusing your efforts on obtaining benefits, that is, improving the accuracy of attraction.

There are a few features that can help you when classifying those customers. For example age, gender, income level, studies, shopping habits, occupation or profession, marital status, family status (children or without children), geographic location, ethnic group, political affiliations or inclinations, hobbies and interests, etc.

It is also not necessary that we include a large number of filters in the analysis, but we should keep in mind that the more accurate the segmentation is, the more accurate the result.

Within your target audience, there are surely differences between people who use your product every day, from time to time or for something specific or, simply, for different things. These groups of people within your target audience are the market segments, which is the division of it into smaller groups, whose members share certain characteristics and affinities.

 

What is the purpose of customer segmentation?

So you don't get involved, it helps to anticipate similar responses to groups of people, or segments, with similar behaviors. All this is measured in your company's own variables that allow you to discover the needs of your customers. 

 

How to segment?

You can segment the market according to several criteria:

  • Activity sector: if they are restaurants, supermarkets, neighborhood stores, etc. If they are from the same sector, try to create subgroups based on the type of products (household, children's clothing store, etc.).
  • Size of your company: depending on the volume of activity, or billing with your company, if it is easier for you.
  • Purchase habits: according to the type of products they buy and their evolution.

 

And on the other hand, you can perform different strategies:

  • Without differentiating: Use the same strategy for all segments.
  • Differentiated: Choose at least two segments and offer a product adapted to each of them.
  • Concentrated: Focus only on one segment. For example, wanting to get close to teenagers or take action in a certain city.

 

Customer segmentation example

Today a bank can have a segment of young people who, a priori, may think that they do not have much money and that, therefore, they should not spend their marketing budget on addressing it. However, the young people of today are the great clients of tomorrow, so I must dedicate a part of my budget to loyalty, developing products and services aimed at them. It is surely not the segment where I earn the most but it can be profitable, even very profitable, and be my strategy to have a faithful market tomorrow.

Thus we can find that in a bank there are clients who are professional, single, with a certain economic capacity, and those who like to travel. With this knowledge, the bank can design a credit card and reach an alliance with a travel agency or with an airline so that the card generates points that can be exchanged for trips.

As seen in the example, all the participants win: the bank because it manages to have a special card for its customers and provides a service that support customers who like to travel. To customers because instead of a traditional credit card that only serves to pay, they now have a card that gives them points to get trips. And the travel agency also wins because customers arrive from an alliance with a bank.

The basis of all this is in business knowledge to know how to segment and be at the forefront of statistical models that allow you to "get it right" with the customs of customers and consumers.