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Market Segmentation Services
Market Segmentation FAQ
What is market segmentation research?
Why is market segmentation research important?
What methods are used to find the segments of customers?
A simple way of starting with segmentation research is to look at your existing customer or client base. If you have a database of their information, you can begin by sorting the data by different criteria. The sorting can include the date of birth, residence, zip code, or what type of service or product they are using or buying.
By doing this, you may see trends begin to develop. Then you can develop a strategy to target the segment of your choice with a tailored message presented on a medium that they are most likely to use.
If you don’t collect much information about your customers or clients, you can also develop a survey for them to complete to get the type of information.
What is an example of market segmentation in action?
Let’s say you own a lawn care business. Many of your customers are affluent homeowners above the age of 50. You get most of your business by word of mouth. Still, you do some marketing by way of yard signs, Google Search Advertising, and door hangers of the neighbors of your existing customers.
When you look through your data, you have noticed that the door hangers have brought in some younger affluent customers in the 25-35 age range. You then research some information that shows that the age range is beginning to buy homes in your area.
Instead of hoping you get these people because they live beside someone who uses your service, you can create a campaign to target them directly. You can begin to build a base of younger customers through paid advertising and then watch the referrals come in as they tell their friends.
This example uses age as a segment, but it’s important to remember that pretty much any kind of “label” can be used as a segment.