Customers nowadays like to feel special. The reason your business seems not to be moving in the direction you want may simply be that you are not serving them as well as you should. Serving your customers excellently is just a matter of paying attention to little details about them and taking them into consideration when you are going about your customer service and subsequent marketing efforts. In this article, we’ll give you 4 tips that you can easily implement, to categorize them, serve them better and grow your business as a result.
In any market you find yourself today, every advantage you can get can go a long way. It can help you keep the customers you have and it can help you get additional customers. The manner in which you go about rendering your service or delivering your product can be the difference between your customers continuously coming back to patronize your business or going with another similar brand. The options consumers have are vast in most industries now so every little gesture or effort a brand makes is taken into consideration.
Companies who know their customers well have the best chances of retaining them and subsequently getting more customers similar to them. This is where an appreciation for customer segmentation comes in. Segmentation allows you to group your customers and prospects into specific categories, with each category having similar characteristics and attributes to one another. There are a few ways that you can segment your customers but we will get to them later, firstly, let’s take a look at 4 tips and ways to improve your business and serve your customers better with customer segmentation: some of the benefits of customer segmentation.
To thrive in your market space your company has to be competitive. This means that an increased connection with customers is required. To connect with customers you need information and one of the proven ways of getting this information is segmentation. Getting to know details about every single one of your customers can be virtually impossible. But when they are put into different groups, getting this information becomes much easier. Once these details are collated you can use them in your marketing strategy. You can fine-tune your messaging and your channels to cater to each group specifically. Targeting this way rather than a general or broad system can yield better results and put your business ahead of competitors.
Optimal Pricing Strategy
Setting the correct prices for your products can be very tricky. You want to make a healthy profit of course but you also don’t want to turn certain customers away. This is why many businesses use upselling to meet their profit targets, upselling is when you recommend products with higher prices to customers. Recommending products with higher prices to customers effectively requires specific knowledge on the type of customers who would appreciate the extra value and could afford to go for it.
Improved Customer Focus and Retention
Today’s customer wants to feel special, that is how many businesses win over prospects. A prime example of when this strategy was first implemented was when businesses started sending birthday wishes to their customers. Offering services and products that are tailored to your customers’ lifestyle helps build a stronger relationship.
Segmenting Your Customers And Prospects
Once you begin to make efforts towards categorizing your customers or prospects, these are a few ways you can segment customers. You can segment using demographics. You can use demographics like Age, Gender and Location. This way you know the specific age group that is most interested in your products and where you should direct your effort toward.
Another method of segmentation is psychographic, which includes grouping customers into class, style and economic capacity. One other method is looking at behaviours such as buying frequency, size of purchase and preferred product option. This data provides a broad view of in-depth information and data that can give you a better sense of your customers’ preferences as well as patterns in product interaction. You could use it in your marketing efforts to drive sales. You could also you this variety of information to redefine customer relation tactics. In every way, your relationship becomes stronger as a result of implementing these segmentation tools.