Customer market segmentation permits a business to better target its customers. Targeting is growing in importance as more and more customer engagement is focused on relevance and relationship building. There are many ways to define your market as segments.
These are the most common segment categories that we use:
· Behavioral = usage rate and patterns, price sensitivity, brand loyalty,
· Psychographic = values, attitudes, lifestyle
· Demographic = age, gender, ethnicity, education, occupation, income, family status
· Geographic = region, climate, weather, population density, population growth rate
Of course these market segments can be quite large and can be reduced by cross correlating sub-segments. We can further target a sub-segment by using localization and social information.
For example, assume you know a specific customer is within a few blocks of your store on his iphone on a rainy day. You know that this customer is a big fan of the local football team.
Your action? Send him an email or tweet (or both) offering a 25% coupon to come in and purchase the local team poncho.
Targeting permits much more relevant messages to specific customers and results in higher lead conversion rates. Use the technique as much as you can.
Do you know your market segments … and segment targets?
Do you have a customer segmentation story to share?
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