Market Segmentation Strategy and Use Case Examples

One of the most important aspects of understanding your customers is segmentation. Not all of your customers fit a certain mold but they can be generalized in segments with certain shared attributes.?

There are many types of segmentation like demographic ( age, education, family size, race, etc.) geographic (country, city, region, climate, etc.), behavioral (decisions and patterns such as purchasing, consumption, lifestyle, etc.),? etc.?

Everyone should consider a market segmentation strategy, in times of rapid changes for example with COVID-19 businesses had to rethink how to sell to customers. Instead of physical stores, they turned to online selling.

When there is a sudden change, your customers will change and so will your market segmentation in order to satisfy your customers' needs.

When it’s time to change your market segmentation consider these three steps:

Understand what has changed - Understand what happened that made this change and then look at your market segmentation and whether you want to change your approach or not.

Start Planning - Once you have your market segmentation, start brainstorming on the issues that might arise and start planning how you would get out of a crisis.

Go from what to why - Why was there a need for change? Why is that risking my market?

Market Research Use Case Examples

Here are some examples of how market segmentation can help you with:

Market and opportunity assessments

If you want to launch a new product or to enter a certain market then market segmentation will come in handy, it will help to further understand the target audience’s needs and also score sales.

Customer Needs Research

Market segmentation can help you better understand your customer’s needs. When you have a segmented market you understand where you connect with your customers and when there is space for improvements?

Product Development

Market segmentation can help you understand that group’s specific needs so that you can now develop a product that would fit this target audience. This way you can save time and money developing products and services that your customers will want to purchase

Campaign Optimization

Knowing your customers will allow you to craft a more personalized campaign that deeply resonates with your target audience. This personal messaging will connect you to your audience and make the marketing campaign more effective.

Creating an effective market segmentation strategy doesn't have to be complex. Our recommendation is to opt for automation right from the start. Instead of relying on spreadsheets, consider using market segmentation software to assess and optimize your marketing approach. This technology is designed to adapt and expand as your business grows. If you'd like to explore market segmentation before committing to a fully integrated system, feel free to reach out to us for research guidance at [email protected].