Our method of segmenting customers uncovers groups of customers with unique needs. Segmenting customers can point to new possibilities for value creation as well as market entry points.
What Customer Segmentation Does
Segmentation partitions a general population with the goal of focusing marketing actions toward subgroups. It is a way of organizing customers into groups with similar traits, performance characteristics or expectations.
Segmentation allows you to focus your marketing resources and appeal to customers in ways that will get their attention and ultimately purchase your product or service. The results of segmenting means discovering how each segment is likely to react to an offer, a price, a promotion or product change. For the customer, the ultimate outcome of segmentation is delight with your product or service.
Customer Segmentation Approach
The process takes the data collected (behaviors, geography, attitudes, beliefs, benefits sought, etc), scores respondents in a multivariate fashion, and clusters respondents based on whether they meet the similarity criterion level for inclusion with other respondents. The process includes:
- Identify the criteria
- Collect the data
- Conduct cluster analysis
- Profile the clusters
Customer Segmentation can strengthen your market position by discovering
- unique opportunities in mature markets
- customer segments that are willing to pay more for complex or customized solutions
- customer segments that are unprofitable and should not be targeted
- the best way to enter an existing market
- customer segments of high potential growth
Some variables to consider in a market segmentation analysis are presented:
|Geographic Segmentation||Psychographic Segmentation|
|Demographic Segmentation||Behavioral Segmentation|
Market Directions delivers segmentation analysis with market research and scoring databases, overlaying third-party data. There are many methods for segmenting markets; we can help you determine the best approach to meet your marketing objectives.
To discuss how we can help your organization, please call us at 800-475-9808
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