Market Segmentation: Find Your Customers
Market segmentation means grouping potential buyers, who share characteristics like income, interests, or behaviors. By doing so, your business can pay less per customer.
How Does Market Segmentation Work?
Customer subsets, or segments, are targeted with specific strategies and tactics to turn prospects into buyers at acceptable costs.
Choosing your customers is a potential advantage for your business. You will be more assertive and make fewer mistakes.
Example:
A gym may target individuals who don’t drive and live in congested urban areas with complimentary shuttles.
How to Identify and Reach Your Target Customers
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Market segmentation is critical for your business because it will increase or decrease your profits.
To effectively identify and reach your target customers, your business should research customer behavior and the factors that drive that behavior. This can be done through different methods.
Discover new segments
By identifying and catering to underserved segments, your business can gain a competitive advantage and establish itself as the leader in its niche(s).
Conclusion
Choosing your customers is critical. By targeting specific consumer segments, your business can maximize revenue. Research and tailor your approach to your target audience, and you’ll be less likely to fail, assuming that you set SMART goals.
