“Rarely does one size fit all, and your prospects know it.”
Distinguishing your target audience in the market and designing the product offering as per your customer discovery will help prove that
your solution has been crafted keeping their pain points and situation in mind. Therefore it is very important to obtain a deeper understanding of
each segment of customer that your product/service will cater to, their buying motives and behaviour. Your promotion and marketing strategy will also be designed according to your customer segmentation.
But as the customer’s needs, behaviours and wants change over time, it is important for you to consistently revisit and correct your customer segments with new data on real behaviours. Therefore it is crucial to keep collecting information about the benefits and features that mater to your customers and data on emerging social, economic and technological trends that may alter purchasing and usage patterns.
On successfully completing this exercise, you will be able to:
- distinguish your target audience in the market and design your offering as per your customer segment
- plan your marketing strategies by focusing on most profitable customers
- customize your product/ service for each customer segment
Case Example: Titan Raga Watch
Demographic – Ladies in age group 30-55 yrs having income between Rs. 2.5-4.0 lakhs per annum. Independent & confident women, young women professional
Geographic – Large Metro Cities
Psychographic – Fashion statement but price sensitive; Mid-premium and luxury
Behavioral – Can be worn on formal occasions, wide range of designs, strong brand loyalty towards the product
Segment your customers as per the action points mentioned below:
- Gather and organize all customer-related information in one place. Obtain additional customer information if need be.
- Divide your customers based on the following:
- Demographics – age, gender, family size, income, occupation, education, religion, race, nationality
- Geographic – World region, country, city, climate, density
- Psychographic – Social class, lifestyle, personality
- Behavioral – occasions, benefits, user status, usage rates, loyalty status, attitude towards the product
- Segmentation cannot be done on the basis of only one criterion. It is best to divide your customers according to all 4 criteria. Start with single criteria as mentioned in point 2 and then expand to other three criteria.
Make a copy using Google Docs-> File->Make a copy option. Classify your customers (keeping their needs, wants and desires in mind).
- You can reach even more specific niche customers by combining different segmentation styles
- Look at how your competitors have segmented their customers