How to connect with customers

Another week, another newsletter

Last week, we explored how to learn from your competitors. This week, we’re spotlighting your customers and how you can connect with them more effectively by grouping them into segments.

What is Customer Segmentation?

Customer segmentation means dividing your audience into smaller groups based on shared characteristics. Instead of trying to market to everyone, you focus on specific groups to create tailored messages that resonate.

When done right, segmentation helps you:

• Build stronger connections with your audience.
• Save money by targeting the right people.
• Increase conversions by delivering the right message to the right group.

How to Segment Your Customers

Here are some ways to divide your customers into meaningful groups:

Demographics

What it is: Demographic segmentation is the process of grouping customers based on basic characteristics like age, gender, income, education, location, and occupation.

Why it works: Demographics give you insight into broad categories of customers who are likely to share certain needs or interests. For example, people living in different regions might have different preferences or needs based on climate or local culture.

How to use it:

• If you sell products for children, you’ll focus on parents (or grandparents, or caregivers) as your target demographic.
• A premium product or service may be targeted at higher-income individuals.
• Geographic location is important for targeting local or regional customers.

Example:

• A clothing brand might create separate marketing campaigns for men, women, and children, each with its own unique messaging.

Behaviour

What it is: Behavioural segmentation is about grouping customers based on how they interact with your business—things like purchasing patterns, website interactions, and customer loyalty.

Why it works: This approach helps you understand how customers are engaging with your brand, allowing you to personalise your marketing based on their specific behaviour.

How to use it:

• Purchase history: If someone frequently buys from your store, you can target them with loyalty programs or exclusive offers.
• Website behaviour: If someone added an item to their cart but didn’t check out, you can send them a reminder or offer a discount to encourage them to complete the purchase.
• Engagement: If someone regularly opens your emails but never buys, you might want to target them with educational content that addresses any concerns or objections.

Example:

• An e-commerce site might offer free shipping to customers who have made multiple purchases or send a cart abandonment email to remind customers who left items behind.

Needs and Pain Points

What it is: Segmentation based on needs focuses on understanding what problems or desires your customers are trying to solve when they come to you. Pain points are specific issues your customers face that your product or service can address.

Why it works: Focusing on customer needs allows you to offer products or services that directly solve their problems, making your messaging more relevant and engaging.

How to use it:

• Identify pain points: Ask yourself what challenges your customers face that your product or service can resolve.
• Target solutions: Once you know their problems, create marketing campaigns that highlight how your business can help solve them.
• Customize offers: Tailor your offers to speak to specific needs, like offering a new mother discounts on baby products, or a beauty brand targeting people with sensitive skin.

Example:

• A skincare brand that understands their customers suffer from acne can target that specific segment with products and messaging designed to treat and soothe acne-prone skin.

Psychographics

What it is: Psychographic segmentation looks at the psychological factors influencing your customers’ purchasing decisions, such as their lifestyle, values, interests, and personality. It’s about understanding why customers do what they do, not just who they are or what they need.

Why it works: Psychographics allow you to connect with your customers on a deeper, emotional level. This is where you can create content that resonates with their beliefs, values, and personal goals.

How to use it:

• Lifestyle: What type of lifestyle does your customer lead? Are they busy professionals, fitness enthusiasts, or eco-conscious individuals?
• Values: What do your customers care about? Is sustainability important to them? Are they passionate about technology or innovation?
• Interests: What are your customers’ hobbies? Do they enjoy outdoor activities, cooking, fashion, or tech?

Example:

• A brand that sells sustainable products can target environmentally conscious consumers by highlighting their eco-friendly practices and sustainable materials. Similarly, a sports brand could focus on targeting fitness enthusiasts with ads featuring active lifestyles.

How to Use Segmentation in Marketing

Once you’ve grouped your customers, here’s how segmentation improves your marketing:

Email Campaigns:

Send personalised messages to each group.

Example: A florist could email wedding flower promotions to engaged couples and houseplant care tips to regular buyers.

Social Media Ads:

Create specific ads for different segments.

Example: A fitness studio could target parents with family-friendly classes and young professionals with after-work sessions.

Tailored Offers:

Provide discounts or packages that meet each group’s needs.

Example: A corporate event planner might offer budget packages for SMEs and premium services for larger companies.

Tools to Help with Segmentation

• CRM Systems: Tools like HubSpot or Zoho help organise customer data.
• Email Platforms: Mailchimp and ActiveCampaign allow segmented lists for targeted emails.
• Social Media Insights: Use analytics to understand audience demographics and behaviours.

Exercise for the Week

Now that you know the four main ways to segment your customers—Demographics, Behaviour, Needs/Pain Points, and Psychographics—think about your customer base and how these segments might apply to your business.

Action Steps:

1. List your customers: Take a look at your current customer base. What are the common traits or behaviours you can identify?
2. Apply these segments: Try dividing them into meaningful groups. For example, you could segment by age group, shopping frequency, or interest in certain products.
3. Tailor your messaging: Once you’ve segmented your customers, adjust your marketing to appeal directly to each group’s specific needs and preferences.

What’s Next?

Next week, we’ll dive deeper into why personalisation matters and how it can transform your marketing results.

Reply and share one way you’ve segmented your customers. I’d love to hear how you’re tailoring your marketing!

Here’s to making connections that count,

Billie Geena