Customer Segments – The Foundation of Any 100% Successful Business and Strong Competitive Plan

Defining customer segments is an important part of a strong marketing strategy, especially since it makes a big difference to a company’s presence in a competitive market. In addition to the above, market segmentation provides an opportunity for effective communication that distinguishes your business, and also accurately determines the messages that will push your customers to buy, thus improving the effectiveness of marketing strategies. In our article, we present to you the four most common types of customer segments, in addition to some other types with examples shown for them. We are pleased to review the article Marketing Plan from Scratch 0 – How to Promote Your Entrepreneurial Project Step by Step.

Customer Segments Concept

Customer segments are groups of customers that are divided based on common characteristics for accurate targeting and effective marketing. Companies often segment customers according to a wide range of factors such as age, gender, or marital status, and segmentation can also be done based on location.

How do I segment and define customer segments?

Customer segmentation requires a company to collect and analyze specific information (data) about customers to identify patterns that can be used to create customer segments, such as job titles, geography, or products purchased.

Customer data collection methods:

Typical information collection methods include:

• Surveys.
• Personal or telephone interviews.
• Previous research information published on market categories.

Market segmentation isn’t just about your business reaching customers more effectively, it’s also about which customers see messages that are relevant to them.

Primary customer segment categories:

Four main customer segmentation models should form the core of any marketing plan:

1. Customer Demographics – Who?

Demographic segmentation may be the first thing people think of when they hear “market segmentation” as it is the most direct way to identify customer groups, but that doesn’t negate its power. Demographic segmentation looks at identifiable characteristics such as:

• the age.
• Sweat.
• Income.
• Religion.
• Education level.
• Gender is male or female.
• Occupation/role in the company.

For example, demographic segmentation might target potential customers based on their income, so don’t waste your marketing budget by sending messages to people who won’t be able to buy your product.

2. Psychological characteristics – why?

Psychographic segmentation focuses on the personalities and interests of your customers. Customer segments are defined by:

• Values.
• Hobbies.
• Beliefs.
• Lifestyles.
• Life goals.
• Personality traits.

Compared to demographic segmentation, psychographic segmentation is more difficult to define but psychographic segmentation allows for incredibly effective marketing so that consumers feel like they are being spoken to personally and up close.

3. Geography – Where?

In comparison, geographic segmentation is often the easiest way to define customer segments, as customers are grouped based on their physical location. Understanding where your customers are located allows you to take all sorts of considerations into account when advertising. Geographic segmentation can be done in several ways:

• The State
• The City
• Area
• zip code

Customers can be grouped within a specific geographic area, which is an excellent option for marketers looking to reach local audiences. For example, an online shoe store might offer different products depending on where a visiting customer lives – chunky leather boots for someone in the country, sneakers for city dwellers, and narrow shoes for resort visitors. Geography is an important part of seasonal customer segmentation, allowing companies to market products that are appropriate for the season.

4. Customer Behavior – How?

Customers are collected on the basis of behavior about:

• Buying habits.
• Identify spending habits.
• Also browsing habits.
• Brand loyalty.
• Previous product reviews.
• Brand interactions.

All of these are data sets that can be harvested from a customer’s use of your website based on:

• Idleness.
• Intention to exit.
• Campaign history.
• Shopping cart value.
• URLs visited.
• Time spent on site.
• Number of pages visited.
• Types of pages visited.
• Number of sessions to your website.

As a result, after analyzing behavioral data, messages can be customized between a first-time visitor and a multiple visitor who has not purchased, such that the message to the first-time visitor is: Hey, check out our latest collection! And to the returning visitor: Join our loyalty program and start saving! Another example of segmenting based on behavior: getting customers with prepaid lines to convert them to postpaid lines. Obtaining information like this is a particularly effective strategy across many industries, including large competitors to global retailers like Amazon, providing e-commerce businesses with the best understanding of their customers, and encouraging repeat visits.

Two operators can be combined to divide the segments, for example:

A bus to transport girls from Riyadh to a university campus in Jeddah, for example. We notice that it specified females, which is a division based on demographics and geographical location, which is Riyadh and the university campus in Jeddah. Therefore, there is no need to advertise outside these two areas, which limits the advertising area and achieves effective marketing.

Other customer segments:

Although the most common types of market segmentation are demographic, psychographic, geographic, and behavioral, there are other types that are worth studying and can provide excellent opportunities in the right context.

1- Technology:

It identifies customer segments based on the role technology plays in their lives, for example identifying the device that connects users to the site and presenting deals accordingly. Consumers who access an online phone store via Safari might be more interested in Apple products, and thus tailor ads accordingly.

2- Company characteristics:

It is the process of analyzing and classifying customers based on the common characteristics and attributes of a company or organization. While the above customer segmentation strategies focus primarily on consumer-facing businesses, Firmographic segmentation can be extremely useful for business-to-business and business-to-business businesses. This type of market segmentation uses several factors to define customer segments.

• Performance.
• the site.
• Industry.
• Company size.
• Number of employees.

Why should I define customer segments?

Customer segments allow marketers to better customize marketing efforts based on diverse subsets of audiences, impacting customer loyalty, new customer acquisition, and even product development.

Benefits of market segmentation to identify target customer segments:

• Reasonably priced.
• Create better customer relationships.
• Identify your most profitable customers and focus on them.
• Also, identify ways to improve products or new products.
• Customized marketing is sure to resonate with specific customer segments because it is built around their needs and interests.
• Determine the optimal communication channel for the segment, which may be email, social media posts, radio or road ads, etc.

Thus, we find that identifying customer segments, i.e. potential customers, directly affects improving customer service, improving the product, and increasing marketing efficiency. Therefore, it is crucial to the success of commercial projects, whatever the product or industry, whether selling online or in person. Start by collecting and analyzing data and use the resulting information to compete and increase profits. Khutana always helps you identify customer segments, and study the market and economic feasibility, in addition to marketing your project in an integrated manner, so do not hesitate to book a meeting with us.

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Customer Segments Article Questions – The Foundation of Any 100% Successful Business