Being able to separate into groups your product buyers or service users is essential for executing effective marketing. For a company with limited capacity and a narrow product range, this classification might not be mandatory. But for large markets and many service variations, structuring clients into groups or clusters is the best way to reach everyone possibly in need of you. Find here are some logical first steps to make to separate your end-customers:
- Make a list of everyone who buys from you. It is easiest to organize the data in an e-template, to use an application or a spreadsheet. Collect as much data as possible to profile the varying needs of the customers. Where do your customers order, what goods they prefer, how do they pay – all critical data for and from them must find a place in your segmentation. That will allow you to guide people to the product most suitable for them. Instead of making guesses, the service will stream to the right person. “Express” delivery of what is needed at the right moment impresses the customer who spun in the dynamics of their lives, don’t want to wait and procrastinate getting the “exactly what I was looking for” product.
- Gather additional information. For some segmentations, you may need to get more user data. But be careful not to stumble into any trap of not knowing well enough GDPR. There are several ways to assemble such a database. First, an association or a trade chamber in your business field probably already has the demographic information that will work for you. Another option is to ask your customers directly about the data you need. And if obtaining information is still hard, you can reach out to a consultant.
- Group properly. You will get yourself in a difficult situation if you classify the same person in two contradictory groups. It is crucial to arrange the segments smart, understanding your customers’ needs.
- High-value segmentation. It doesn’t make sense to focus your efforts on those who represent, for example, less than 1% of your market. For the added value of the segmentation to be relevant, your client groups should be big enough and ready to buy for you to generate profit considering all the costs.
The groups’ arrangement can base on demographics – for example, age, professional occupation, education or income. It may include gender, marital status, or the number of children. Classification can also be made based on geographical location or buying behavior like what products they buy, how often, and using which means. One of the most beloved approaches in the last years uses lifestyle as a separator. Usually, it is complemented by the creation of personalized profiles – the so-called buying personas.
Being able to distinguish the subtle differences between individuals in your audience is not only a sign of a “keen eye” on the detail. It is also a guarantee of an effective marketing roadmap.
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