We all like to think we know our customers—but how well do we know them actually? In today’s competitive marketplace, knowing our customers is no longer enough. It’s all about building strong customer relationships that drive brand loyalty.
By segmenting customer databases, companies can build relationships and loyalty in their customers by better addressing their specific wants and needs. Once a business has identified its target market—those most likely to purchase from them—it can further divide its customers by using the following segmentation strategies.
Geographic Segmentation: Where?
There are several ways to use geographic location data, making geographic segmentation a valuable method—especially for businesses where location plays a role in purchasing decisions. The division of the market according to different geographical units such as continents, countries, regions, neighborhoods, or even landscapes is helpful in determining the types of products that are useful or necessary in specific areas.
Demographic Segmentation: Who?
The most common form of segmentation, demographics divide consumers into groups based on population variables such as gender, age, income, social class, religion, occupation, or education. Understanding who customers are at the root level enables marketers to more closely identify and understand their specific needs, product and service usage rates, and wants or interests.
Psychographic Segmentation: Why?
Psychographic segmentation attempts to answer the ‘why’s’ surrounding consumer behavior by separating the market based on lifestyle variables that shape the purchasing decision process. Interests, attitudes, opinions, and values all contribute to a consumer’s view of a product or service. Using psychographics, marketers can present their products in a way that makes them attractive to a particular group, in accordance with their lifestyle.
Behavioral Segmentation: How?
Behavioral segmentation divides the market based on consumer uses, responses, knowledge and attitudes toward products and services. Through customer data reports, surveys, and marketing trends, marketers can identify different patterns of use, price, price sensitivity, brand loyalty, and benefits sought among their customer base.
No matter how you choose to segment your list, trust Redi-Data to help you generate the leads you need. With hundreds of selection criteria to choose from, including variables such as property information, buying habits, lifestyle interests and more, you can segment your best prospects to maximize response rates, increase sales, and lower the cost of your important communication.
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