Steps to build marketing strategies on what matters most to your consumers
When brands want to connect more strongly with their customers to create tailored marketing strategies, one of the first things to do is segment the market. When done right, segmentation can provide a company cornerstone on which to build and grow—that true understanding of who makes up a customer base; a critical step in marketing’s golden rule of “know thy customer.”
Traditional market segmentation is a strategy for dividing a broad target market into subsets of distinctive groups based on commonalities—customer similarities and what sets them apart from others. These shared traits, or differentiating factors, could include needs, attitudes, behaviors, and even basic geographic and demographic information. Understanding the customer at this more granular level allows brands to zero-in on priority segments and follow the ultimate Goldilocks principle—finding those “just right” opportunities to inform future marketing and positioning strategies.
Basing Customer Segmentation on Brand Goals
The question to ask before starting segmentation research is, “What are the customer segmentation goals for the brand or company?” Segmentation approaches have been around for decades, and there are different options out there on how to approach this process. Not only that, sometimes the research process tries to cover too many bases by asking too many questions to get the most information—more is more, right?