Customer segmentation refers to the practice of dividing a customer base into groups of individuals that are similar in specific ways relevant to marketing. These groups include age, gender, interests, location, buying patterns and more. When used appropriately, customer segmentation can provide a number of benefits to your business:
Customer segmentation increases competitiveness:
You can always stay a step ahead of competitors in specific sections of the market using customer segmentation. It enables you to identify new products that may impress the existing or potential customers. It further helps improve products to meet customer expectations.
Improves the product/ service quality:
When you segment your customers according to categories such as age, gender, demographics, buying patterns etc. you gather a lot of valuable data. This data helps identify the areas of improvement. It also lets you know what’s not working for you so that you do not waste your efforts and resources on it anymore.
Helps acquire better quality leads:
Customer segmentation helps find the customers who are actually qualified to buy your products or services. This will also help save your time and efforts by eliminating the unqualified leads.
Efficient use of marketing budget:
Through customer segmentation, you can actually make sure that all your marketing collateral and advertising gets seen by real prospects instead of the ones who are little or not at all interested.
Helps nurture your customers:
You can segment your customers by the potential order value they can reach. This helps make sure that they reach the checkout. Thus, customer segmentation can actually help you to eliminate cart abandonment. It can further help nurture your customers so as to move them down the sales funnel.
Enables you to upsell and cross-sell:
The information gathered through customer segmentation can be used either to get your customers interested in one of your products (cross-selling) or to get them thinking about other, complementing items (upselling), hence, boosting your profits.
Have you considered leveraging this amazing and powerful practice to grow your business yet?