What are the advantages of customer segmentation?
Effective customer segmentation will help you gain insight into the different groups of people interested in your company's products or services. This will help you understand customer needs and create more added value for them. This translates into higher revenues and profits for the company, better customer service processes, a strong brand image and customer loyalty. In addition, customer segmentation helps you determine the right direction for your company and identify trends associated with changes in the profile of your company's typical customer.
Customer segmentation step by step
To effectively segment a customer group, you need to go through a couple of key stages.
Know your customer
To start segmenting your customers, you need to consider who your customer is . If you make strollers, your target audience is parents of babies. If you make protein supplements, you need to be aware that the product you sell will be targeted primarily at people interested in gaining muscle mass. On the contrary, if you make charging stations for electric cars, you need to be aware that your main customers will be, well… electric car owners. The above reasoning may seem trivial, but it is a very important first step, without which segmentation is impossible.