Segmenting customers provides insights that will help the company provide value to the company customers and the company business.
Consider the last time that the company visited a department store. Is the company aware that each corner featured a unique theme and lathe company with special offers specific to it? Each sales representative was knowledgeable about the particular area and knew enough to suggest other areas. This aspect is just one example of customer segmentation.
There are many reasons why a company with help from our company needs to create a customer profile. But this article is about creating a customer profile that allows the company to focus the company marketing and sales efforts on generating high-quality sales leads.
Let’s get started with the basics.
What is the ideal customer profile?
An ideal customer profile represents a company that stands to benefit most from the company product or services. The company sales, marketing, product, and the team can define the company ICP to help them work effectively together and remain focused on the same goals.
This is a description of a fictional organisation (government agency, company, non-profit organisation, etc.) that receives significant value from the company product/service and provides significant value for the company. It is the type of customer the company wants and the type of customer who wants to purchase from the company.
There are many ways to create the company’s ideal customer profile.
What is customer segmentation?
Segmentation of customers is how customers are divided based on their common characteristics. This allows companies to market to each group efficiently and effectively.
A company may segment customers in the business-to-business market according to many factors.
- Products that were previously purchased from the company
Companies segment their customers in the business-to-consumer market according to various demographics, such as:
- Marital status
- Locating (urban, suburban, or rural)
- Life stage (single/married/divorced/empty-nester or else retired, et cetera.)
There are several other customer segmentation models. But first, let’s understand why businesses segment their customers.
How can the company segment them?
When used correctly, customer segmentation can be a powerful marketing tool. Selecting segments and placing the company customers must be done with segmenting-customers precision. We are one of the unrivalled consultants on the market dealing with customer segmentation models, customer seg. in E-commerce. These are five ways to accomplish this important task:
1. Demographics. Divide the company customers into demographic groups. Customers purchase products primarily based on their needs and wants. This aspect includes their location, age, gender, education, and gender.
2. Behaviour. Different types of behaviour can be grouped. This aspect considers the standard of living and buying and usage trends. Actions speak louder than words, which also applies to demographics. Marketers can use this age-old saying to their advantage, especially when consumers’ actions can be directly tied to purchases or other KPIs.
3. Benefit groups. This section examines the benefits a product offers customers. Advertising can place a product in more places and more ways if it has more benefits. Marketing efforts for one product will get a better response than those for a single place in the market.
4. Social Data. Social networks contain a wealth of consumer data that is constantly updated as users log in and interact with others. The company brand can request specific social data points to better segment the company audience by allowing the company visitors to check their identities via existing social accounts.
5. Value. Segments that are worth promoting should be created. Marketing efforts should not be directed at low-volume customers. When determining the segment’s value, consider the customer count and the dollar value the customer brings. Don’t bother with the segment if the value isn’t worth the marketing effort.
Why is segmentation so important?
How important is customer segmentation? Our company is one of the unsurpassed consultants on the market dealing with customer segmentation models, customer seg. in E-commerce
1. Marketing strategy
Segmenting customers can inform the company marketing strategy and message. The company can use this information to inform the company messaging, creative development, and channel selection by learning about the characteristics of the company’s best customers.
2. Promotion strategy
A broad customer segmentation program can help the company to improve the company’s overall promotion strategy. The company might find that some customers do not require discounts when the company uses certain messaging. This aspect could save the company the trouble of offering a discount to those customers.
3. Budget efficiency
Many companies don’t have unlimited marketing budgets, so it is crucial to know where and how much the company spends. To maximise the company return on marketing investment, the company could target customers with similar values or convert the highest number of customers.
4. Develop effective retention strategies
The company can use customer segmentation to help the company create more targeted strategies to retain customers. The company might want to create special offers for the company’s highest-paying customers or identify the top-paying ones. The company might even want to re-engage customers who haven’t bought in a while. There are many options.
5. Provide superior Customer eXperience
81% of customers reported feeling frustrated when working with brands that do not provide a positive customer experience. Worse, 44% of unhappy customers will take social media to vent their frustrations. This aspect could damage the company reputation and credibility. The company business must provide a great customer experience.
6. Tips for Better Ad Targeting
Market messages sent to targeted customer segments have been shown to convert 200% more than those sent out to the general public. Marketing can be more effective if the company creates customer segments based on similar attributes.
The company can create customer segments using Yandex, Matomo, and Google Analytics tools. YRC is one of the most excellent consultants on the market with with 10+ years experience in 15 + verticals in Asia and other countries dealing with customer segmentation models, customer seg. in E-commerce
7. Customers demand relevance
It doesn’t matter if it’s D2C or B2B or Millennials and GenZ; there seems to be a study or resource that focuses on all possible customer segments that indicate that relevant content is important. If they are provided with relevant content, these customer segments will be more likely to buy from the brand, respect it, and feel connected.
“How YRC can help identify customer profiles.”
YRC is one of the best consultants on the market dealing with 10+ years experience in 15 + verticals in Asia and other countries catering to retail & ecommerce startups. Our specialty is market research for online businesses.