It is impossible to be successful in sales by targeting one advertising message to different recipients. The basic tool enabling efficient sales management in the company is the proper division of customers. Thanks to it, it is possible to prepare such sales strategies that will guarantee the company's success in every area. What exactly is customer segmentation? And how to do it?
What is customer split?
The idea behind the division of customers is to identify and distinguish homogeneous consumer groups. In other words, segmentation is a kind of allocation of potential customers to specific groups, characterized by a specific value, reaction to the product / service and purchasing preferences. The division is the basis for creating tailored business strategies focused on the needs and expectations of representatives of individual groups.
The division of customers is also a chance to find those recipients who generate the greatest profit for the company. Focusing marketing activities on this group, you can get even better results sales conversion.
Thanks to appropriate customer segmentation, brand recognition among individual target groups increases in a natural way. All thanks to communication strategies tailored to the characteristics of customers. The company can drive image-building activities tailored to specific recipients, thus ensuring a stable position on the market and creating a high competitive advantage.
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Customer division - criteria
Split customers is a long and demanding process. Typically, segment extraction is done gradually. Each new client is first of all qualified to the general group, which includes people with different interests, preferences and characteristics. Then, customers are divided into narrower categories, according to selected criteria. We can take into account the following factors:
- demographic - nationality, marital status, age, sex, education,
- economic - profession, income, source of income,
- geographical - place of residence, city size, geographical region, climate,
- social - social class, lifestyle, personality traits, values, interests and passions.
Marketing segmentation according to the above criteria, it is the basis for the preparation of a company's business strategy that ensures multi-faceted development. However, in order to maximize the potential of segmentation, it is worth considering one more important variant of the division - the classification of consumer behavior.
Consumer behavior research - an important element of customer segmentation
The division of customers by consumer behavior is an effective support in the company's marketing and sales activities. Detailed analysis allows you to know the complete purchasing preferences of customers, which greatly facilitates tailored marketing communication aimed at specific goals. In the study of consumer behavior, the following factors are taken into account: product expectations, frequency of purchases, brand loyalty, average basket value, as well as visited websites.
Consumer behavior research can be carried out in several different ways. One of the most popular methods is the RFM (recency, frequency, monetary) analysis, which determines the consumer's values, his reaction to the offer and the time when it is best to send a given offer.
RFM analysis is divided into three steps:
- R - time elapsed since the last purchase; division of customers into those who have made purchases in the last days, have not made purchases for some time and have not visited the store for a long time,
- F - frequency of purchases; division of clients into regular, regular and occasional,
- M - the amount of money spent by the customer in the store; division of customers into thrifty, average and premium customers.
It is worth using the results of the analysis in marketing activities. Customers who recently made purchases in the store should be reminded of the products they viewed. Keeping in mind the positive shopping experience associated with the brand, they are willing to return to the store and become its customers again.
The exclusive assortment should be directed to occasional customers who like to take advantage of unusual occasions. On the other hand, the target of weekly offers should be regular customers who shop systematically.
High RFM customers are those who shop frequently, are eager to take advantage of promotions and are willing to spend a lot of money on the products you offer. It is worth maintaining systematic communication with such consumers, because creating and nurturing positive, trust-based and loyal relationships is the key to maintaining high-level sales.
Distribution of customers during the crisis
2020 has shown us that not everything can be planned. Sometimes unforeseen situations turn the functioning of the company upside down. The revaluation also applies to the consumer market. New needs, expectations and behaviors emerge.
Appropriate distribution of customers in a crisis situation is crucial. The analysis of changes in consumer behavior should be the basis for updating the strategy and offer. Based on the data from the analysis, existing customer segments are refreshed or new, completely separate ones are created.
The division of customers, whether in times of crisis or in the ordinary course of business, is an important tool strategic enterprise management. Appropriate segmentation is the first stage of creation business strategy and a chance to be very successful in the market.