Importance of Market Segmentation

Importance of Market Segmentation

segmentation, strategy
Market segmentation is practised by most businesses in one form or another, as a way of streamlining their marketing strategy by dividing broad-based target markets into specific groups of consumers, and devising marketing methods that will appeal to each group. Some marketing practitioners also use behavioural segmentation to define their audience. Identifying viable segments Clearly defined market segmentation criteria not only ensure that customers are more likely to identify – and purchase – the product that is right for them; it also minimises wastage of resources, reducing the time spent marketing the wrong products to the wrong customers. It is important, however, to focus resources on market segments whose size, growth and profitability is good, both immediately and in the long run. The following 5 market segmentation criteria should be…
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Mobile marketing an effective tool for customer engagement

Articles, strategy
Engaging with existing customer base can be costly, particularly in today’s world when advertising costs are continuing to increase and positive results from an advertising campaign are harder to achieve. In such challenging times, marketers should search for new ways in which they can assign specific segmented targets for campaigns, increase customer touch points, and analyse the information collected after every campaign in order to maximize ROI. If you are focusing on customer engagement, then, mobile marketing provides the ability to achieve all of these goals. I have outlined some key benefits of using mobile marketing as a customer engagement tool: Easy and Instant - The message is delivered within seconds; this will result in positive touch-point. Most mobile marketing applications are very simple to operate. This means it’s very easy…
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Tailored Strategies for Customer Churn Management

Articles, customer retention, loyalty, marketing, strategy
Customer churn in the services industry is still a growing issue, primarily because many consumers have little or no allegiance to a particular service provider. So, how do we solve this? The answer is knowledge: know your customers and know your prospects. As retailers are the customer-facing end of the sales cycle, much of the responsibility for producing customer loyalty has to lie with them. I know many companies who collect vast amounts of data for ensuring risk management procedures. However, this information can be converted into a powerful tool to reduce churn by helping to answer three basic questions: How do I sign up profitable customers? How can I enhance loyalty with my most profitable customers? How do I handle my existing customer base? (more…)
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9 Cs of Client Retention

Articles, customer retention, strategy
The fastest way to grow your business is to reduce the number of clients who leave you. Thus, looking after existing clients should become your top priority. You would have to do more than just service your clients if you want to retain them for a long period of time – for which you would have to transform the business into a client driven organisation. There is a big difference between focusing on service and being client driven. Follow these 8 Cs for Client Retention to avoid the 9 C – Cancellation: (more…)
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Moneymaking Customer Segmentation Tips

Articles, segmentation, strategy
Moneymaking customer segmentation requires treating different segments differently. If different segments are treated the same, what is the point of having different segment Knowing why and how to treat each customer segment requires understanding of the potential in marketing data. The most precious data for marketers is hidden in their own databases. The dilemma is that marketers may not know how to look at their own data to release the potential that will help them communicate more effectively with their customers and prospects. Finding the right segmentation is half the challenge. The other half is knowing how to use them to improve profitability. Here are 11 of the most valuable tips to improve customer segmentation to increase profitability. All of them won't apply to any one company; but some of them…
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Keeping the pace with customer expectation

customer retention, loyalty, marketing, strategy
The significance of data is that you can see behaviour change daily. If a trend emerges from analysis of your data, it is appropriate to review marketing strategy and assess the success or relevance of the plan under way. The data and the insight they provide become an extremely precious indicator of customer satisfaction. Data linked to loyalty programs becomes a rich source of market research. It is not what people say they do but what they actually do. Naturally, market research still has a valuable role, it is still required to determine why customers have changed but its use has become even more focused. By analysing your loyalty program data, you can recognize which of your customers visit frequently (and spend a lot) which ones visit infrequently (but still…
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6 tips you need to know before choosing a marketing consultant

Articles, marketing, niche, strategy
Before turning your hard-earned business/brand over to a marketing consultant, you’ll need to schedule a sit-down and inquire some questions—from fundamental to painstaking. It probably goes without saying, but a face-to-face meeting which has a prospective consultant, advisor or marketing manager is a must. Relying only on recommendations from your most trusted friends and family members won’t suffice; it is ultimately up to you to make certain your business/brand are safe and being put to perform to fulfil your specific goals. So what do you need to know? Here’s a list of questions to allow you to prepare for the initial meeting: (more…)
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15 Marketing Tips for Finding New Customers

Articles, customer acquisitions, marketing, strategy
All companies fear instability and the possibility of a severe market downturn. However it is during these periods when the best companies show something better than simple survival skills. Downturn separates out the bad and mediocre, as a result leaving fewer companies standing in good stead to carve up the market when things get good again. So let's talk about a new and different way to seek new and different customers. These fifteen tips are really quite simple yet are so often missed. Pass the tips on. Better yet, put them in practice and be ready to handle the endless stream of new customers. Tip 1 Develop partnerships for your business. First, tally up all your marketing assets of what you can offer to a potential partner in terms of…
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Customer retention is not easy but it is rewarding

Articles, customer retention, loyalty, marketing, strategy
Customer retention programmes have historically had insufficient priority in most sectors, but then the forces affecting customer churn, and therefore the need for retention focus, have never been so great. The idea is not new. What is new is the approach. What is now being witnessed is a market increasingly commoditised and far more susceptible to competition - from other players and from new media. Customer knowledge and confidence have had a significant impact: it has become so much easier to compare and to swap products. Changing sales structures and wearing away of face-to-face interaction have helped to dilute or eradicate conventional 'loyalty'. What direction does this give the services marketer? It leads the way to a re-examination of profit drivers and a critical evaluation of current programmes. The business…
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10 Simple Tips for Avoiding Marketing Mistakes in the Future

Articles, customer acquisitions, marketing, strategy, word of mouth
In early 2010 Patrick (of course I have changed his name) a friend who manages few companies was frustrated with some of the marketing outcomes. I promised to help Patrick clear his frustration but only if he poured me a nice glass of red. We discussed as how time and again novice marketers, even marketing veterans, make costly mistakes that result in poor performance of their marketing campaign. You don’t need me to tell you this, but common marketing mistakes can be avoided with adequate planning, attention to detail, and ongoing measurement and evaluation. Personally I feel that marketing is critical to the success of every business. Unfortunately, many businesses discount the effect it can have, and they forego their marketing efforts for other activities. Or they make one or…
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