How do you use segmentation to identify and target new and potential customers?

To attract new customers, even before creating your campaign you need to understand at which stage of the funnel you want to reach it. You should also understand the differences in sector and product.

When a brand is deciding their offering ( product or service ) they cannot complete it without knowing their audience. Whatever your marketing goal may be , for a proper consumer behaviour analysis, segmentation on all four levels ( demographic psychographic, behavioral and geographical ) is necessary. This is irrespective of the marketing goal. Without segmentation, consumer study is incomplete and with an incomplete analysis of your audience your B2C marketing strategy will be half baked. To create a proper strategy and marketing funnel, even if your goal needs partial segmentation, I feel, a complete four level segmentation will always save time and minimise marketing failures.

Before diving into segmentation, clearly outline your goals. What do you hope to achieve with customer segmentation? Common goals include: Increasing sales and revenue Improving customer retention Enhancing marketing efficiency Identifying new market opportunities Having clear goals will guide your segmentation process and ensure your efforts are aligned with your business objectives.

As a product owner, one of the metrics that I use when gaining insight on my audience is the Net Promoter Score. The Net Promoter Score (NPS) is a metric used to measure customer loyalty and satisfaction. It helps gauge how likely customers are to recommend a company, product, or service to others. NPS is based on a simple question: "On a scale of 0-10, how likely are you to recommend us to a friend or colleague?" Based on their responses, customers are categorized into three groups: promoters, passers & distractors. To calculate the score you subtract the percentage of distractors from the percentage of promoters. There are more metrics out there, but personally I prefer precision over accuracy and this is a great resource

A good segmentation is ? Actionable ? Value based ? Statistically significant i.e. the different segments have statistical differences Hence, you shouldn't limit yourself to qualitative data, but try to understand the value behind each of your segments based on market resarch to make it actionable and value based. Very often segmentations are limited to qualitative aspects which strongly reduces their effectiveness and actionability.

Once you have done your initial research you should be able to develop hypothesis about who are your most valuable customer segments. For example ? What are their 4P preferences ? What are their category entry points ? What are their drivers barriers and triggers Those hypothesis are validated and quantified in a consumer survey which allows you to understand the size and value of each of your segments.

Segmentation helps you to first build a big picture strategy and then create sub strategies, based on your media channel, shorter goals, immediate budget allocation etc.

After segmenting the customers you want to reach, it's time to create campaigns for each segment. It is important to be complete, with information such as price, image and description of the product.

By segmenting your audience based on demographics, interests, behavior, or needs, you uncover distinct customer profiles. Imagine segmenting potential customers who haven't purchased yet but browse a specific product category. This allows you to develop targeted campaigns reaching these high-potential individuals. You can craft messaging and offers tailored to their interests, ultimately converting them into loyal customers. Segmentation empowers you to move beyond a one-size-fits-all approach and develop laser-focused strategies to attract new customers.

Segmentations are a great tool ? to identify and address new target groups ? understand the value of different segments ? prioritize accordingly in product development ? understand 4P preferences of different segments ? get clarity on segment specific category entry points. A good segmentation is ? Actionable ? Value based ? Statistically significant i.e. the different segments have statistical differences Very often segmentations are limited to qualitative aspects which strongly reduces their effectiveness and actionability.