With consumer segmentation as part of your marketing strategy, you can tailor your marketing efforts to each specific audience. Market to niche audiences and save money by reaching the right people with the right message.
Your Marketing Strategy: Consumer Segmentation Definition
What is consumer segmentation? Consumer segmentation is the practice of dividing a customer base into groups of individuals that are similar in specific ways relevant to marketing, such as age, gender, interests, and spending habits.
How to apply consumer segmentation:
- Decide what data will be collected and how it will be gathered
- Design questions and plan to collect qualitative input
- Collect data and integrate insights from various sources
- Develop methods of data analysis for segmentation
- Establish effective communication among relevant business units (such as marketing and customer service) about the segmentation
The process of consumer segmentation requires researching your customers using both quantitative and qualitative methods to understand their preferences and needs. This way, you can accurately tailor marketing materials toward that segment.
Benefits of customer segmentation:
- Improved prospect and customer experiences
- Better conversion rates for prospects
- Increased customer loyalty
- Higher net promoter rates
Just as receiving a handwritten letter means more than receiving a generic mailer, personalizing your marketing materials to show an understanding of prospects and customers is a wise technique to make people trust you and feel valued. It's a meaningful way to start your relationship with your customers, and help them remember you, so when it comes time to refer a friend, they'll think of you.
Customer segmentation can also make it easier to manage customer experiences. By dividing customers into different groups that share similar needs, the company can market to each group differently and focus on what each kind of customer needs at any given moment, making marketing and customer care more organized and targeted.
At CMG, we don't just build ideas, we set them in motion. We'll roll up our sleeves and work side-by-side with you and your team to implement your customer segmentation plan from beginning to end--from research planning through analysis and activation.
It's time to reinvent customer engagement. Let's talk.