You can’t please everyone. But if you’re running a small business, you know how important it is to please as many people as you can. What if it was possible to cater to every one of your small business customers the way they want to be catered to? Target your offers to different groups of people based on what they want and need? Get more sales conversions because you’re marketing on a smaller, more individualized level?
With segmentation, all of this is possible!
Segmentation is the process of breaking your market down into smaller groups based on demographics, location, lifestyle or behavior. It helps you avoid marketing surfboards to people who live in Vail or ski parkas to those who live in San Diego. It helps you target your high-end products to the people most willing and able to buy them, while tailoring more affordable solutions to those who need them.
In short, segmentation helps you sell people what they need, when and where they need it, without wasting time and money marketing to people who won’t buy.
Pick Your Pleasure
Before you can get started with segmentation, you need to decide what target groups you want to concentrate on. In the beginning, it’s best to not overreach — it’s better to have one or two clearly defined, effective segments than six or seven muddled ones. Remember, you can always expand your efforts as you go.
Confused on where to start? Think about what would help your business the most. For instance, if you have multiple offices spread across the country or primarily do business online, you should begin by concentrating on location. If your product is age-specific (think hearing aids or diapers), you should initially focus on demographics.
Collect Your Data
Now that you know what you’re targeting, it’s time to begin collecting your data. Start by combing through past purchase information. Look for the trends. Who’s buying what? How much and how often are they buying? Where do they live? Are there any clear patterns that stand out? For example, are people in the Midwest ordering twice the amount of a certain product than the rest of the country?
Not enough data? Consider conducting a survey — with an incentive for people to complete it, of course. Basic information such as location, income, spending habits, etc., can help you get a clearer picture of your customers.
Get to Work!
Once you have a couple segments, it’s time to start using what you’ve learned about them. Create different campaigns within each segment. If you’re focused on location, for example, you might create a “walk-in” special for those who live near your brick and mortar store, while offering far-flung customers an “internet-only” special. If you’re focused on demographics such as age and gender, you’ll likely create one ad targeting 50-something men and another catering to 20-something women.
Segmentation works because you’re offering people an individualized experience. While you’re not likely to please all the people all the time, segmented marketing allows you to get as close as possible!
Not sure who to target and how? Mischa Communications can help your arrow fly true! Give us a call today and let’s get the conversation started!