With customer or market segmentation as part of your marketing strategy, you can tailor your marketing efforts to a specific audience. Marketing to a niche audience to deliver the right message to the right people at the right time – that’s the goal of effective marketing execution.
What is market segmentation? Market or customer 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. Firmographics, demographics, and other identifying factors that articulate a targeted persona allow you to tailor your marketing strategy to those persons who are more likely to respond to your differentiated offering.
But why is this important? There are multiple benefits of market segmentation:
- Improved prospect and customer engagement through a differentiated experience
- Better conversion rate for prospective customers who are seeking to learn more
- Increased customer loyalty, which translates to an increase in advocacy – those instances when customers recommend you to others
- Enhanced efficiency in your marketing spending and implementation
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 diverse 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 more organized and more efficient.
Let’s connect. It's time to reinvent market segmentation.