How do you segment your market?

1 Geographic segmentation

Geographic segmentation is based on the location of your prospects, such as their country, region, city, zip code, climate, or population density. This type of segmentation can help you adapt your sales approach to the local culture, language, laws, regulations, and preferences of each area. For example, if you sell solar panels, you might target prospects in sunny and warm regions more than those in cold and cloudy ones. Geographic segmentation can also help you allocate your sales resources more efficiently, and avoid overlapping or competing with other sales reps in your territory.

2 Demographic segmentation

Demographic segmentation is based on the personal attributes of your prospects, such as their age, gender, income, education, occupation, family size, marital status, or ethnicity. This type of segmentation can help you understand the needs, wants, and challenges of different groups of customers, and offer them solutions that match their budget, lifestyle, and goals. For example, if you sell life insurance, you might target prospects who are married, have children, and earn a high income more than those who are single, childless, and earn a low income. Demographic segmentation can also help you create more personalized and relevant sales pitches, and build rapport and trust with your prospects.

3 Psychographic segmentation

Psychographic segmentation is based on the psychological traits of your prospects, such as their personality, values, attitudes, interests, hobbies, or lifestyle. This type of segmentation can help you appeal to the emotions, motivations, and aspirations of your customers, and show them how your products or services can enhance their quality of life. For example, if you sell fitness equipment, you might target prospects who are health-conscious, active, and adventurous more than those who are sedentary, lazy, and risk-averse. Psychographic segmentation can also help you differentiate your brand from your competitors, and create a loyal and engaged customer base.

4 Behavioral segmentation

Behavioral segmentation is based on the actions and behaviors of your prospects, such as their purchase history, usage frequency, loyalty status, satisfaction level, or response to marketing campaigns. This type of segmentation can help you identify the most valuable and loyal customers, and reward them with special offers, discounts, or referrals. It can also help you identify the most dissatisfied and inactive customers, and try to win them back with incentives, feedback, or support. For example, if you sell software subscriptions, you might target prospects who have used your free trial, visited your website, or opened your emails more than those who have not. Behavioral segmentation can also help you optimize your sales funnel, and increase your conversion and retention rates.

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?