Customer segmentation is not just a powerful strategy, but a practical tool for businesses to tailor their marketing efforts and enhance their understanding of their audience. Last week CPR introduced the concept of customer segmentation derived from the Market analysis. Subsequent to offering the benefits of customer segmentation, we offered a few customer segmentation models, today we offer the final 3 customer segmentation models, each of which provides actionable insights:
Needs-based segmentation: This approach divides your audience based on their current emotional, physical, and financial needs. For instance, if you sell furniture, you’d target college students and professionals working from home with a low-cost desk, while stay-at-home parents might be interested in a children’s coloring desk.
Psychographic segmentation: Here, you divide your audience based on how they think about values or products. Consider an athletic gear company: marathon runners, basketball players, and status-conscious individuals have distinct shoe preferences. This model offers flexibility, allowing you to adapt it to various industries.
Technographic segmentation: This model categorizes users based on their technology segmentation. For example, a SaaS company could personalize emails differently for HubSpot users versus Salesforce users. Compared to the other two models, technographic segmentation is particularly useful for companies operating in the tech industry, as it allows for personalized marketing based on the specific technology preferences of different user segments.
Customer segmentation is a crucial strategy for entrepreneurs. Remember, collecting data is crucial for effective segmentation. Choose the model that aligns best with your business goals!
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