Business segmentation: There is nothing better than understanding your target audience to offer your customers a quality and valuable product. After all, companies cannot advance in the consumer market without knowing the needs and desires of those who buy.
Therefore, we bring here an essential topic of the marketing strategy of retail companies: segmentation. Understanding customers’ profiles are one of the first steps before launching a new product.
The Meaning Of Segmentation
As it is a fundamental strategy for organizations to obtain new customers and keep current ones, market segmentation is part of the initiatives carried out by the companies’ Marketing area.
Segmentation consists of grouping your audience according to similar characteristics or attitudes to direct your communication and personalize the products offered.
In this way, knowing the different clusters, you can more assertively reach potential customers. And thus, the objective of the organization is more easily achieved.
How To Set Segmentation
At all times, companies receive a flood of information and relevant data from their consumers. Based on this data, it is possible to understand who your customers are, their preferences, and their behavior as consumers.
The segmentation is done through registration data and transactional data. The first option is obtained through information filled in by customers when purchasing a product in the store or requesting a card. For example, the second form is visible from purchases made by credit cards.
There are four types of segmentation:
– Demographic (age, gender, income, occupation);
– Geographic (region, size of the municipality, climate);
– Psychographic (lifestyles, interests, values);
– Behavioral (attitude towards the purchase, frequency of product use, loyalty).
Use The RVF Method
Using some techniques helps to arrive at some answers, such as the middle income or social class where your customers are. You can measure Regency, Frequency, and Value with a simple and efficient formula to obtain relevant information for decision-making in companies. This result can support an action plan for the company.
You can get a score with data like your customers’ most recent purchases, how often they’ve purchased that product in the last few months, and the amount invested.
By marking these points on a graph, you can visualize how many customers are from which social class or middle income and are willing to consume your products.
The Use Of Technology In Favor Of Companies
Currently, as long as authorized by the customers themselves, companies can get in touch and relate to their audience through various means.
The large databases concentrate on registration information, relevant purchase history, and customer relationship with the company.
CRM can concentrate data and obtain reports, making it possible to cross-reference information quickly and get to know your customers better.
It is increasingly common for the organization of contact data that promotes interaction of companies through emails, text messages, and notifications on social networks with personalized offers for their customers.
Another tool that facilitates customer service, for example, is the chatbot. This system speeds up the company’s interaction with consumers by electronic message and provides quick solutions for any questions or problems.
What Can Change In Your Business?
At first, categorization allows you to target your product to your target audience better. Therefore, understanding their wants and needs helps the company to get production and sales right.
With targeted actions and customer-focused production, it is natural for your business to increase revenue. In addition, nowadays, segmentation is widely used for digital marketing campaigns, where choosing the right target involves cost and generates gains for brands.
With more effective advertising campaigns and winning new customers, brands are strengthened in the market. The memory of your name starts to be identified by the right audience for your product, or it is possible to change the direction if you want to reach other people in the consumer market.
Through segmentation, distribution logistics, and channels where the customer finds the product become available at appropriate times and places for the consumer.
Likewise, call centers and communication improve. Knowing your customer, expanding support, and having your service according to the public is possible.
Knowing which forms of communication with the company are most used, there is an improvement in the management of the relationship through these channels, such as service by phone, website, app, or social networks.
Finally, there is more excellent customer retention and loyalty. Once the consumer’s needs and difficulties are known, the company avoids their loss to the competition and makes the shopping experience more welcoming and satisfying for customers.