Customer segment: what is it, how to define it and what is it used for?
Posted: Thu Dec 05, 2024 9:47 am
tation is a set of actions through which common aspects of the customer base are selected and divided into different groups: each of them is a customer segment. There are four different types of customer segmentation, and all of them are presented as an efficient strategy to reach qualified leads, improve negotiation and increase sales.
To learn all about what a customer segment is, understand its applicability and discover its advantages, just continue reading, which this article will cover:
Segment marketing, also known as marketing segmentation, is a strategy based on the practice of dividing a company's target audience into similar groups. Through this zambia email address technique, specific subgroups can be created based on different characteristics, such as demographics, needs, priorities, demands, and other psychographic, geographic, or behavioral criteria.
What is a customer segment in Canvas?
It is a business model that provides a visual representation of the main aspects of each set of customers. Divided into blocks, it presents important references about the consumer base, such as the depth of their pain, the way each segment is open to adhering to the product offered, the budget allocated to each one and the Lifetime Value (LTV).
Demographic and geographic segmentation: what are its main aspects?
Demographic segmentation can be divided into B2C and B2B. The former is based on establishing each customer segment based on the classification of their individual attributes, considering aspects such as gender, age and educational level. Other examples of this type of customer segment are: income and number of people in their family, among others.
The second segmentation, the geographic one, on the other hand, presents the specificities of companies, such as the number of employees they have, the sector in which they operate and their location.
Geographic segmentation is considered the simplest type. As the name suggests, it defines consumers by area, which can be broader, such as country, or more specific, such as urban and rural areas.
Behavioral segmentation: what is it?
Customer segments are determined by their behavior, i.e. their actions, such as their purchasing habits, their consumption patterns, the number of interactions with the brand and their preferred communication channels . This type provides deeper insights into consumers and therefore reveals their awareness and loyalty to the company.
This segmentation requires a broader knowledge of customers and requires data analysis. To be more precise and thus direct strategies in line with the customer's purchasing journey and moment, it requires, in addition to a more in-depth study, technological solutions that show the consumer's history and present their purchasing parameters.
What is psychographic segmentation?
Psychographic segmentation is similar to behavioral segmentation, but it focuses more on the psychological characteristics of consumers. In general, we can say that psychographic segmentation is based on the thoughts and ideas of customers, while behavioral segmentation focuses its analysis on their actions.
Some examples of this type of customer segmentation are: lifestyle, social status, personal values, motivations, beliefs and personality.
It is carried out mainly on the basis of “how people think they are” and “what they want to be”. Therefore, it brings in more subjective concepts and requires a differentiated approach in relation to the type of language used and the treatment offered.
What are the benefits of customer segmentation?
As important as knowing what customer segmentation is, is knowing the main benefits that are obtained by determining each customer segment. These are:
Target the right campaigns at the right time
Customer segmentation allows you to gain in-depth knowledge of both the desires and objections of your customer base. It therefore optimises the quality of your campaigns, as the language, message, approach and timing are more assertive.
This assertiveness is directly reflected in the ROI of your investment in campaigns, as it avoids unnecessary expenses on wrong marketing actions.
Improve the loyalty process
With real data and facts about the most diverse aspects of the groups, it is possible to personalize messages, offer differentiated attention and, thus, improve the satisfaction of consumers of your product or service.
To learn all about what a customer segment is, understand its applicability and discover its advantages, just continue reading, which this article will cover:
Segment marketing, also known as marketing segmentation, is a strategy based on the practice of dividing a company's target audience into similar groups. Through this zambia email address technique, specific subgroups can be created based on different characteristics, such as demographics, needs, priorities, demands, and other psychographic, geographic, or behavioral criteria.
What is a customer segment in Canvas?
It is a business model that provides a visual representation of the main aspects of each set of customers. Divided into blocks, it presents important references about the consumer base, such as the depth of their pain, the way each segment is open to adhering to the product offered, the budget allocated to each one and the Lifetime Value (LTV).
Demographic and geographic segmentation: what are its main aspects?
Demographic segmentation can be divided into B2C and B2B. The former is based on establishing each customer segment based on the classification of their individual attributes, considering aspects such as gender, age and educational level. Other examples of this type of customer segment are: income and number of people in their family, among others.
The second segmentation, the geographic one, on the other hand, presents the specificities of companies, such as the number of employees they have, the sector in which they operate and their location.
Geographic segmentation is considered the simplest type. As the name suggests, it defines consumers by area, which can be broader, such as country, or more specific, such as urban and rural areas.
Behavioral segmentation: what is it?
Customer segments are determined by their behavior, i.e. their actions, such as their purchasing habits, their consumption patterns, the number of interactions with the brand and their preferred communication channels . This type provides deeper insights into consumers and therefore reveals their awareness and loyalty to the company.
This segmentation requires a broader knowledge of customers and requires data analysis. To be more precise and thus direct strategies in line with the customer's purchasing journey and moment, it requires, in addition to a more in-depth study, technological solutions that show the consumer's history and present their purchasing parameters.
What is psychographic segmentation?
Psychographic segmentation is similar to behavioral segmentation, but it focuses more on the psychological characteristics of consumers. In general, we can say that psychographic segmentation is based on the thoughts and ideas of customers, while behavioral segmentation focuses its analysis on their actions.
Some examples of this type of customer segmentation are: lifestyle, social status, personal values, motivations, beliefs and personality.
It is carried out mainly on the basis of “how people think they are” and “what they want to be”. Therefore, it brings in more subjective concepts and requires a differentiated approach in relation to the type of language used and the treatment offered.
What are the benefits of customer segmentation?
As important as knowing what customer segmentation is, is knowing the main benefits that are obtained by determining each customer segment. These are:
Target the right campaigns at the right time
Customer segmentation allows you to gain in-depth knowledge of both the desires and objections of your customer base. It therefore optimises the quality of your campaigns, as the language, message, approach and timing are more assertive.
This assertiveness is directly reflected in the ROI of your investment in campaigns, as it avoids unnecessary expenses on wrong marketing actions.
Improve the loyalty process
With real data and facts about the most diverse aspects of the groups, it is possible to personalize messages, offer differentiated attention and, thus, improve the satisfaction of consumers of your product or service.