October 2010

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Why Should You Segment Your Customers?

Would you talk to a senior citizen the same way you would talk to a teenager?

  • Would you speak French to an Australian?
  • Would you offer a freezer to an Eskimo?
  • Then why are you speaking to all your customers the same way?

When you segment your customers you can craft communications that relate more closely to them and your sales effort become more effective.

So, would you market a Ferrari to a teenager?

Segment to maximize your marketing dollars

When you divide your customers into different groups you are able to communicate more effectively with them. You can divide customers in a logical process that leads to groups that are homogeneous and that will likely react in the same way to your marketing message.

The division can be based on:

  • Demographics (gender, age, location and education)
  • Product (what products or services they buy and at what levels)
  • Recency and frequency (when was the last purchase and how often they buy)
  • Any other criteria that makes sense for your business

Once you create segments, you are able to customize your message so that it is more relevant to the segment. For example, your message to new customers would be quite different from customers who’ve made several purchases. Or your message to an elderly person would be different than the one addressed to a teenager.

The more relevant your message to segments, the more customers will feel you are speaking to “them” and the likelier they will “listen” to you.

How can Solutions for Growth help you?

By helping you identify the segments among your customers!

Let’s review your business’ segments and discuss what strategy to implement. Communicate in a more relevant manner and see your business grow!

“David’s deep marketing experience is easily evident and working with Solutions for Growth has been very advantageous.” Uco Wiersma, Ph.D., Principal, Proactive Careers

Sincerely,

David Fischer