When the market space has cutthroat competition, one has got to up their game and research deeply to understand what the customer wants. That is exactly what market segmentation does – connect you to your customers. Read on to know how:
What is Market Segmentation?
When in a market, the customers are categorized into different groups based upon a common set of features like behavioural patterns, desires, geographic locations etc, this means that the customers are segmented into smaller subsets on the grounds of common interest.
Common interests are natural in nature. Segmentation can help one market their product or services in the best possible way to allure customers from different backgrounds.
Benefits of Market Segmentation
- As segmentation of customers reveals their interests, businessmen can always appeal to those interests to lure in customers.
- Market segmentation gives a clear idea of what a customer demands, and knowing what one wants is an intelligible way to cater to exactly those requirements and instill success.
- Feedback is absolutely necessary for improving business in the market. Upon knowledge of the people in the subsets, feedback will be thorough and quick.
- Categorising into small groups is more convenient than reaching out to individuals.
How to Use it?
Sales are influenced in e-Commerce through personal attributes and not physical contact. Once information on your target audience is achieved, do the following:
1.Grilling into Segments
On the basis of demographic and personal attributes like location, gender, age, relationship status, income, behavioural patterns, language and interests, grill the target audience into segments. Broad groups are on the basis of geography, demography, behavioural and psychographic segmentation.
2.Choosing the Right Audience
Once you’ve divided the audience into segments, comprehend the most profitable groups and understand what makes them tick to increase sales. If a segment is profitable, despite of being small, it is considered substantial.
Existing customers are easier to convince than targeting a new one. Maintaining trust and loyalty with the existing customers will earn more profit and be cheaper. If the existing customers feel that they are being personally catered to (when they are in a segmented group), they will come back to purchase more.
Link the new products to the old ones and generate customer satisfaction. By using past purchases to instill new ones, the customer will be attracted to the deals. This is a simple web design in Pensacola task.
5.Keep an Eye on Customer Activity
To best understand what a segment wants, keep a track of the customer activity. Check their browsing history, products that they have favoured over others, and the kind of packaging related ideas that they approve of. When such a track is made, a customized email to all segments might just be the impetus needed to purchase it.
Strategise according to segment needs. Gather the content writing, web design and advertising, marketing team to deliver the best results. Make a list of demands of every segment on the basis of commonality. Strategise according to it. For eg, a segment in a particular location might be more attracted to a specific kind of web design than another. Make it feature-centric.
Market segmentation makes you think like the customer. Not only will it increase sales, it will connect you to the customer, urging them to respond.