Imagine the situation when your try to sell exquisite vegetarian menu on Friday night at the sports bar full of football beer-and-beef fans waiting for “Bread and circuses” and their raw steak.
Hmm, something will definitely go wrong.
No wonder that the rule number one before even trying to sell something is to clearly define the portrait of your potential customer. No marketing efforts will bring you positive results unless you try to know your target audience better. After this, one would think, obvious step you’ll see that there are much more things to learn, and segmentation can give you the key to this learning.
Without segmentation your customers are just an ordinary crowd of people, and you’ll never know how to treat them efficiently.
When you start drowning in the chaotic pool of customers, segmentation will offer you the solid ground to stand by and successfully manage smaller but more vendor-friendly customers.
Does segmentation bring real commercial value?
Well, I don’t promise any miracles, but at least it helps to obtain commercial advantage easier. When you deal with narrow groups of people your advertising campaigns effectively hit the target.
Arrange your customers by simple parameters and provide the smaller groups you’ve got with relevant and highly attractive offering to increase sales.
Trying to develop the criteria for your customers’ segmentation, keep off from difficult parameters and complicated schemes. Segmentation should not be complex, for example, you can start with analyzing customer gender, age, place of living, spending habits and other basic parameters applicable to your kind of business.
Target your offering
When you know exactly what your customers want, you can think of cross-selling your products with the associated goods. For example, you offer beauty products for women. Summer with its hot weather, active sun and upcoming vacations make people think of sun care cosmetics. Adding high SPF sunscreens for 45+ ladies and tanning activators for teenagers to your ordinary product range will improve your customers’ satisfaction. By thinking of your customers according to their demands, you anticipate their desires even before they realize they had them.
Targeted customer message is not only an effective selling instrument, but a good customer service. It shows that you appreciate their loyalty and value their interest in your products.
Segmenting your customers can definitely help you boost sales in the overall prospective. However, narrowing your landscape, you should be prepared to sacrifice some customers in favor of building the stable community of loyal clients that will help to prove your position at the market and as the result attract new people and drive more sales.
Increasing your focus on narrow groups of targeted people you greatly increase competitiveness. Brand loyalty highly depends on positive associations. If you manage to prove that your products are chosen by professional sportsmen/businessmen/stylists/celebrities, whatever, you won’t have to wait too long before a crowd of ordinary people will want to try it, as they want to get closer to people they are proud of or admire.
Today STP approach (Segmentation, Targeting and Positioning) is a common approach that helps companies all over the world to successfully compete in the harsh Age of the Customer. Now it all goes around customers, not products. And we should adjust. It’s hard to overestimate the value of STP, because it helps us to introduce personalized and engaging messaging for different kinds of audience. Tastes differ and we should find the right way to satisfy all of them, occupying our own small niche at the particular market and in the hearts of our audience. Targeting the right segment, you ‘ll build a stronger company and its profitability may surprise you.
Alexandra is a marketing specialist and a professional translator. For the last five years she’s been writing corporate blogs, website content and analytical articles on e-Commerce, technology solutions, etc. for different companies.