How can you use advanced market segmentation and targeting?

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Market segmentation and targeting are essential tools for any consultant who wants to help their clients reach and serve their customers better. But how can you go beyond the basic criteria of demographics, geography, and behavior, and use advanced techniques to segment and target your market more effectively? In this article, we will explore some of the ways you can use data, analytics, and psychographics to create more refined and relevant segments and target them with more personalized and persuasive messages.

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Alan Hale

Consulting and V.o.C. research in b2b markets leading to insight and actionable strategies and tactics. Providing…

1 Data-driven segmentation

One of the ways you can use advanced market segmentation and targeting is by using data-driven segmentation. This means using data from various sources, such as surveys, transactions, web analytics, social media, and customer relationship management (CRM) systems, to identify and group your customers based on their characteristics, needs, preferences, and behaviors. Data-driven segmentation can help you uncover hidden patterns and insights that can inform your marketing strategy and tactics. For example, you can use data to segment your customers based on their lifetime value, loyalty, churn risk, or satisfaction level, and then target them with different offers, incentives, or messages accordingly.

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Alan Hale

Consulting and V.o.C. research in b2b markets leading to insight and actionable strategies and tactics. Providing marketing research for b2b. This makes market research actionable and enables better business decisions
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First you need to identify target segment and ideal client profile. You do this by talking to good customers as well as customers who left. It can be industry, application, or behavior . Usually not just geography. Then identify issues and pain points. And the selection process during their journey. What media and social media do they use. Then craft a compelling value proposition, ie why should they buy from you. Then craft messaging that says here is how we address your pain points and here is how we solve them. Features linked to benefits. Also here is why we are a credible source. Design communication strategies around pillars of messaging.

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Anuj Kumar

AGM | Sr. Consultant | Cloud | Data Insights | AI/ML | Intelligent Automation | Digital Transformation | Aligning Business Goals with Technological Innovations
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Gathering data from different sources might seem straightforward, but the key is selecting the right attributes. It's not just about finding information, it's about finding the right kind of information. If you're not clear about what you're looking for, you could miss out on important insights that the data holds. Think of it as putting together a puzzle. You need to have a picture in mind to know where each piece fits. Similarly, having a clear goal in mind helps you identify the specific attributes that matter most. It's like finding the pieces that complete the bigger picture you are trying to understand.

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2 Analytical segmentation

Another way you can use advanced market segmentation and targeting is by using analytical segmentation. This means using statistical and mathematical methods, such as cluster analysis, factor analysis, or conjoint analysis, to segment your customers based on their similarities and differences. Analytical segmentation can help you create more objective and robust segments that can capture the complexity and diversity of your market. For example, you can use cluster analysis to segment your customers based on their responses to a set of questions or attributes, and then use factor analysis to identify the key dimensions that differentiate them. Or, you can use conjoint analysis to segment your customers based on their trade-offs and preferences for different features or benefits of your product or service.

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3 Psychographic segmentation

A third way you can use advanced market segmentation and targeting is by using psychographic segmentation. This means using psychological and behavioral factors, such as personality, values, attitudes, interests, and lifestyles, to segment your customers based on their motivations, aspirations, and emotions. Psychographic segmentation can help you create more nuanced and empathetic segments that can resonate with your customers on a deeper level. For example, you can use personality tests, such as the Myers-Briggs Type Indicator (MBTI) or the Big Five Personality Traits, to segment your customers based on their preferences for communication, decision-making, or learning styles. Or, you can use values-based frameworks, such as the VALS or the Rokeach Value Survey, to segment your customers based on their core beliefs and goals.

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4 Personalized targeting

The final way you can use advanced market segmentation and targeting is by using personalized targeting. This means using data and technology, such as artificial intelligence (AI), machine learning (ML), or natural language processing (NLP), to target your customers with customized and relevant messages that match their individual needs, preferences, and behaviors. Personalized targeting can help you increase your conversion rates, retention rates, and customer loyalty by delivering more value and satisfaction to your customers. For example, you can use AI and ML to analyze your customers' online behavior, such as their browsing history, search queries, or purchase history, and then use NLP to generate personalized and persuasive content, such as product recommendations, reviews, or testimonials, that appeal to their specific interests and pain points.

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Alessandra Menini

Head de Comunica??o estratégica e digital | FIA WIM Mentor | Founder & CEO da Femmaturity? | Consultora | Palestrante | Piloto de carros
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Creating a sense of belonging is an excellent way to keep personalized targeting working fine. You may aim for different and essential aspects, for example: Foster Inclusivity, Cultivate Connection, Provide Support Systems, Promote Collaboration and Cooperation, Recognize and Celebrate Contributions, Support Local Businesses and Initiatives etc.

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5 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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Ranjith Kumar Panjabikesan

Co-Founder and Partner at Levitate Consulting, Enterprise Architect | Leveraging IT and Trends to Transform Businesses
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Key Aspects to Consider. Customer Obsession - Focused and Consistent efforts to be taken towards understanding the client landscape. Immersing in prospects/clients business and industry is crucial. After Intel,getting sense of what the prospects/clients are into , It is extremely Critical to have periodic Candid Conversations with prospects/clients, gain in-depth insights on the current state of business, Business Goals-short term and long term, Road map, Business IT Alignment Challenges, What are keeping them up in the night Burning Issues which they are stuck and Most Critical Problems which impacts emotions they wish to solve etc. Data Obsession-Collect,Leverage Data on Almost everything to provide great experience to prospect/client.

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How can you use advanced market segmentation and targeting?

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1 Data-driven segmentation

2 Analytical segmentation

3 Psychographic segmentation

4 Personalized targeting

5 Here’s what else to consider

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How can you use advanced market segmentation and targeting?

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1 Data-driven segmentation

2 Analytical segmentation

3 Psychographic segmentation

4 Personalized targeting

5 Here’s what else to consider

Consulting

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