Author:
Bobbie Johnson
Date Of Creation:
3 April 2021
Update Date:
1 July 2024
Content
Customer segmentation is a successful marketing tool when applied correctly. There are many different segments, but your specific customers only fall into a few of them. For this reason, identifying the segments your customers belong to requires meticulousness and precision. Check out the list of customer segmentation suggestions below.
Steps
1 Make a list of current clients so you have an idea of which set of categories you are dealing with. Ideally, you should have an electronic customer base. If not, invest in software that can segment your customer base. Filter the list according to how much profit each client brings to you, from largest to smallest. 
2 Begin the segmentation process by defining the baseline characteristics of each customer. For example, classify them by territory, gender, age, and educational level. 
3 Divide your customers into demographic groups. Consumers buy products based mainly on their needs and desires, which have to do with where they live, how old they are, what gender they are and what level of education they have. 
4 Divide customers in terms of territory, whether it's a small area or an entire country. Marketing strategies can be influenced by factors such as population density and climate. 
5 Group clients according to psychographics. These are specific segments related to lifestyle preferences, personality characteristics and social class. 
6 Segment each contact in terms of purchase history. Break them down into groups based on the products purchased, the frequency and usage patterns of each product. 
7 Segmentation by behavioral tendencies is possible. This approach forms groups of people with similar behavioral patterns.This approach allows us to take into account not only the standard of living, but also the preferences when buying and using goods. 
8 Divide consumers into groups according to benefits. This segment takes into account the benefits of a particular product to the buyer. The more benefits a product has, the more options there are for its advertising. As a result, marketing investments in one product can generate more responses than a single position in the market. 
9 Choose equally limited segments. You cannot assign a consumer to more than 1 segment at a time. In addition, the segments must not overlap. Both will reduce the impact of marketing initiatives by oversaturation of consumer interest. 
10 Consider segments that are valuable enough in the market. You shouldn't waste your marketing efforts on a low-volume segment of consumers. When determining the value of a segment, take into account the number of customers or the volume of consumption in monetary terms. If a segment's value isn't enough to invest in marketing, then ignore that segment.
Tips
- Use segmentation tools and services to group consumers into segments. There are many services available to help you describe your customer base. They can be used to group customers in terms of value and lifestyle. Identifying such customer groups will help you be more accurate in marketing your product.
