Market segmentation

Have you learned the best way to identify and serve customers in your target segments? Market segmentation  is one of the most important points facing SMB's today. If you fail to understand your different market segments, you'll fail to attract and convert traffic on your site. Why? Because you're not addressing different customer needs on your website. This is why SEGMENTATION is so vital to your on-line website.

So what is market segmentation and how can you implement an onsite strategy that meets the standards necessary for achieving consistent results?

Segmentation is making sure the right message -> gets to the right buyer -> at the right time. It’s also a great deal more economically efficient than mass marketing or even using 

By gaining an understanding of consumer behaviour you have the insights needed to increase conversions. Market Segmentation is the tool that helps you analyse different consumers that have different behaviours and cater to their specific needs.

Before we discuss the elements of a segmentation strategy, it's important to ask some basic questions, like:

Product: Do you have products that meet the specific needs of each, or any segment? Meeting the customer's needs relates to the product's performance, look and feel, ease of purchase, and ease of use. 

Place: Do or can you offer your product for sale where the customer wants to buy it? 

Promotion: Have you created messages designed to communicate your product's features and target those customers most likely to buy? 

Price: Are you in the right price band for your target customers? You don't have to be the least expensive, but you have to be considered competitive.

By targeting the segments which have the highest propensity to engage, you can develop a more effective marketing strategy that better serves consumer needs and ultimately boosts conversions.

Now the 5 elements of the most effective segments you need to bear in mind are:

  • Measurable – based on size, purchasing power, and segment profile
  • Substantial – of a critical mass that is profitable
  • Accessible – one that can easily be reached
  • Differential – is distinctive from others
  • Actionable – that enables effective programs/campaigns to be developed

To segment markets properly, you need to divide them into distinct groups with specific needs, characteristics, or behaviours. Each segment will require separate products or marketing mixes. Start by :

  • Giving each segment Name and description. Define how to address each segments primary needs and concerns.
  • Assign the products/services on your on your website to cater for each market segment. Make clear distinctions between each of them.  building a differentiated value proposition.
  • You can do this easily on Exai by using the drag and drop feature to arrange cubes items containing content, each according to individual segments. This helps your visitors to find what they are looking for.
  • Use and encourage visitors to make use of a contact us form. Take care to include relevant fields in the form. Exai provides you with ready to go contact forms that you just need to drag and drop in place.
There is alot more to cover on customer segmentation and we hope to be addressing the area of segmentation in more detail in the near future. In the meantime this should help you to get started with a basic understanding of the subject with action points to help you begin the segmentation process.