Towards the Age of Personalized Marketing
Last week, we have discussed about various segmentation types. Digging a little bit deeper into the subject, today we focus our methodological article on how exactly to translate the segmentation findings, so that the client uses them to their full extent and value.
Being a key element in a marketing strategy, segmentation should be build up on robust, representative samples, and should offer sufficient and complex enough information for the client to be able to identify their “monetizing value”.
In order to make the segmentation easier to use for clients, researchers should go beyond statistics and provide marketing teams a mental image of the “typical” buyer, most often in the form of a profile.
As a further step into the actual understanding of the respective profiles, clients should be supported with workshops and exercises meant to help them tackle the specificity of each profile. Tasks such as naming each profile based on their description are commonly used.
On the other hand, market segmentation studies also involve researchers to a great extent, since they need to go beyond reports and use creative approaches to make segmentations more actionable and accessible to their clients. Clear explanations of behaviors, preferences, needs and willingness to pay offer to brands important hints about the potential sales volume the respective segments might have.
After a common exercise of understanding the targets, the team can think of different products and services through which they can target the identified groups of customers. Before doing so though, it is important to assess the attractiveness and “share of wallet” of each segment, in order to adjust the marketing strategy accordingly.
Last but not least, by tailoring the marketing mix, brands are able to meet customers’ needs more precisely, and further on, to increase loyalty among their customers.
The hyper-connected world we live in raises more clustered customers’ needs and opens new doors for personalization.
Stay connected to Questia Group and find out more on our upcoming segmentation on youngsters.