It’s all too common for a company to think it understands its customers and their needs only to find out they are way off base when a new product launch totally flops. Understanding your customers and what drives them to make a purchase is paramount whether you are launching a new product or developing a marketing strategy.
Different customers have different needs, which makes the segmentation exercise such a critical step. The four bases of segmentation are geographic, demographic, psychographic and behavioral.
There are numerous ways to segment by geography. The level of detail required will indicate which type of geographic segmentation to proceed with.
- Regional: By continent, country, state, city or zip code(s)
- Population Size: number of people in a given area
- Population Density: rural, suburban or urban
Demographic segmentation has numerous criteria that can be used to segment your customer base including:
- Social class
If your product is focused on a consumers lifestyle than segmenting your customer base by its pyschographics makes the most sense. Pyschographic factors for analysis include:
The last segmentation base is behavioral. Behavioral segmentation uses customer behavior towards the product as its basis for segmentation including:
- Brand loyalty
- Desired features
- Purchase patterns
- Usage rates
Segmentation can be a burdensome and time-consuming process. In addition, incorrect or incomplete segmentation work can be the difference between success and failure. Please fill out the form at Contact Us and let’s discuss how Marketing 4 Hire can fulfill your segmentation needs.