“Don’t shoot the world, aim at the duck.” This thought by Franck Scipion can be associated with one of the keys to contemporary marketing: the importance of market segmentation .
Knowing how to create a segmentation strategy is important for several reasons:
will help you shape and direct your strategy;
It will tell you who your zimbabwe email list customers are and where to find them;
will allow you to reach them quickly and efficiently.
Market segmentation strategies are processes aimed at specific groups of potential consumers who have been classified according to common characteristics, whether demographic, personal or social.
Can you imagine a Zara campaign trying to sell heavy coats to customers living in the Caribbean? Or an Always campaign trying to sell sanitary pads for girls aged 2 to 5?
It doesn't make much sense, does it? However, if you stop and think about it, you're probably familiar with cases of companies with good products that have not been successful, precisely because they didn't target the right audience.
To prevent this from happening to you, in this post we tell you:
Continue reading to discover how to create an effective segmentation strategy for your company.
What is market segmentation?
The concept of market segmentation refers to the method that allows potential customers to be grouped into similar groups under established criteria, in order to develop personalized strategies with greater impact.
When you know how to create a segmentation strategy, you can ensure that your marketing campaigns impact specific customers with content tailored to each of them.
The application of an appropriate segmentation scheme makes true personalization possible, which encourages and consolidates customer loyalty to the brand.
Check out some statistics on the impact of personalization on business organizations:
74 % of customers are frustrated when website content is not personalized;
81 % of consumers want brands to know them and understand when to approach them and when not to;
79 % of organizations that exceeded revenue goals have a documented personalization strategy.
Do you want to make the most of personalization in your marketing processes? Take the opportunity to delve deeper into the personalization trend and discover 5 key data for success in this strategy.
How to segment the market?
An essential requirement to understand how to make a segmentation strategy is to know the types of market segmentation. One of the classification criteria divides them into 4 groups:
Geographic segmentation : Classifies customers based on the continent of residence, city, or specific neighborhood. It also includes other aspects, such as climate.
Demographic segmentation : Divides the company's target audience considering variables such as age, gender, occupation, among other related variables.
Psychographic segmentation : Here, members of the target audience are grouped based on their interests, values, recreational preferences, and other personality traits.
Behavioral segmentation : The criteria used in behavioral segmentation focus on the consumer's usual behaviors on certain occasions. They also cover variables such as the frequency with which the customer uses the product or service.
Knowing these criteria in detail contributes decisively to the success of a company's segmentation process. How about delving deeper into the types of market segmentation and their importance ?
With what we have told you so far, it is now possible to understand how to carry out market segmentation. Below we show you the three fundamental stages of this process:
1. Defining the product and target market
At this stage, it is crucial to define what you are going to sell and who is going to buy it . It is about establishing the characteristics of the product and defining your buyer persona or ideal client.
By clearing up these unknowns, it is possible to build your target market, which encompasses the universe of clients that serves as a basis for segmentation.
You may be interested in reading: What is the target market ? Learn 5 steps to define yours.
2. Design and application of strategies for market segmentation
With your target audience already defined, it is time to design and implement market segmentation strategies. The type of strategy you choose must be in line with your organization's business objectives.
Strategies can be:
Mass : They are distinguished by being aimed at all segments that make up the brand's target audience. An example would be a fashion chain that produces clothing for people of all ages and social groups.
Differentiated : When the actions are directed at two or more already identified segments of the target audience. An example would be a product aimed at young technologists and university students. Despite being the same product, the campaigns would be different, always considering the segment to which the customers belong.
Personalized : A segmentation strategy is considered personalized not only when it is directed at a single group of customers, but also when the selection of communication channels, content and messages is distinguished by a high degree of individualization. This is what happens, for example, when Netflix recommends a series or movie to you based on your preferences.
Concentrated : These are strategies that, in addition to being specific, focus on a single customer segment, despite having identified several of them. It is convenient for companies with limited capital that prefer to 'play it safe' on a customer segment that is more willing and likely to buy their product.
