top of page

CPR Level Up series: Customer Segmentation Part 1-Benefits

Consultant Proficiency Resources provided essential information for the busy leader ready to level up through business expansion strategy. Today, CPR provides a case for understanding Customer segmentation, which is not to be confused with Market segmentation. Customer segmentation is one of the best ways to reach different sections of your customers at the right time and with the correct information. In contrast, Market segmentation is the process of dividing a broad consumer or business market, usually consisting of existing and potential customers, into sub-groups of consumers (known as segments) based on shared characteristics. In the next post, CPR will put a spotlight on customer segmentation, which is the more underutilized.

Let's first define a customer segment. A customer segment is a group of consumers who share similar characteristics and needs. This is best exemplified on a personal level. Typically, we all have different cadres of relationships with different degrees of friendship. Based on your current information, you may share with your cadre from work, school, religious or political affiliation, neighborhood watch, etc. Similarly, one can set different communications to different customers by segment.

According to Forbes (2023), customer segmentation is a category of market analysis that "involves grouping existing and potential customers based on shared characteristics. When you segment customers into different classes, you will better understand their needs, preferences, and buying patterns." Customer segmentation is more than placing people in a box; it is a means of communication to understand different needs. Once you understand the need, you can commence divergent thinking while applying Creativity for a competitive advantage.

Customer segmentation is a powerful tool that can deepen your understanding of your customers, enhance your marketing and sales strategies, and optimize your marketing techniques. Today, CPR is excited to share three benefits of Customer Segmentation.

1. Gain a competitive marketing edge.

“If you deliver a personalized customer experience via email or CRM, you’ll always have an edge over competitors that use a one-size-fits-all approach.

2. Target customers better with paid campaigns.

Segmentation empowers you to engage the right customers with relevant ads, which can significantly boost your click-through rates, conversions, and sales. This also means you can focus more on customers that provide a high return while reducing your ad spend for less profitable customer segments.

3. Improve your email nurture campaigns.

What appeals to Gen Z might be unappealing to millennials. The same applies to entry-level workers versus directors in the same field. These are all different segments of people with unique ways of thinking and know-how.

Practicing the art of knowing your customer saves time and money, allows customization, allows branding, and allows you to set your valued customers' needs as the primary focus.

1 Comment

Although, I thought that I knew about customer segmentation, reading this information has really been beneficial. I am here just for that reason because I realize that I need a mentor and consultant to assist me in being all that I can be. My greatest take away from part 1 has been the reiteration of what it takes to have an edge over my competitors. Now, at this juncture it is incumbent upon me to establish what that looks like in the tangible realm of my operations.

Post: Blog2_Post
bottom of page