Since market segmentation is a complex process and requires testing, it is normal that we can often make mistakes. These are some of the mistakes that we should try to avoid as much as possible:
Segment too much.
Segment without strategy.
Do not adapt new segments.
Focusing too much on demographic aspects.
Create too many segments.
Segment too much.
Specific segmentation if used properly can produce excellent results. The problem is that segmenting too much can make the segments so small that they cannot be properly exploited. Excessive segmentation presupposes results, while good segmentation starts with a large group.
segment without strategy
The segmentation of potential clients without a defined strategy behind it will not help you at all. A good segmentation will only be effective if there is a project behind that must be fulfilled. Without this, it is nothing but a waste of time.
Do not adapt new segments
The basic principles of segmentation do not change over time, but the segments themselves do gradually. This is something generational and we will have to evaluate it over time and generations. It is important to take all these changes into account in order to update the segmentation on a regular basis in order to always obtain maximum efficiency.
Focusing too much on demographics
One of the most common mistakes when targeting is focusing too much on demographics, especially at the expense of behavioral targeting. While demographics are an essential part of the segmentation process, they should never replace other segments. Certain behaviors like shopping patterns during specific times of the month can offer a lot of information about a customer and in some cases more than their own demographic.
Create too many segments
Segmentation is only effective if it is well planned. Creating too many segments can result in a large sea of confusing data that creates more problems than it solves. There is no magic number when it comes to creating customizations as it will depend on the needs of the specific campaigns, but a good general rule is not to exceed a maximum of 5.
How to use segmentation to personalize a website?
Web personalization is the future of Digital Marketing and audience segmentation is a main part of this process.
According to recent research from the Boston Consulting Group, those who used digital tools for personalization increased their equity revenue by 6-10%, which is considered 3 times faster than those who didn’t.
Segmentation can help hit the right person with the perfect message at the right time, making marketing campaigns like email campaigns much more effective. Segmentation is not synonymous with personalization, but it is an essential part of it.
Segmentation differs from personalization in that it deals with groups of users or people rather than individual individuals, but it can help predict actions and thus display messages that maximize user interaction.
What is an ideal client?
We define an ideal client as the person for whom our products or services solve their problems.
Our purpose and mission should be to help that person in need, so that they get what they want.
First you need to know this initial situation they are in, and once you can establish a relationship with them, perhaps you can offer help with the products or services you provide.
The “Ideal Client” is also known as target, BP (Buyer persona), ICP (ideal client profile), target audience or however you prefer to identify it.
The Buyer Persona, Persona Archetype or client prototype, refers to the representation of the profiles of our ideal buyers, beyond a simple definition of position or age.
It is a tool that helps us chart the north and better understand our customers and prospects, understanding their pain points and their context: What is relevant to them, where do they get information, who do they trust, what are their personal goals and professionals, what are their fears, etc.
Keep in mind that these people have already gone through a process of reflection on their need, they are aware and they know that there is some aspect of their life that they should improve. Something they are uncomfortable with at those times.
When you appear as a solution that attacks a specific aspiration that has been going around in his head for a long time, it clicks and everything clicks.
In this way we can put the customer at the center of all our commercial and marketing actions, always seeking to make their lives easier.
How can knowing your ideal customer impact my business?
These tools will undoubtedly help us determine which profiles generate the most value for our business, cross-referencing the information collected with your brand data.
We will also be able to improve our communication processes in the commercial relationship and create more attractive and effective campaigns, in which we generate greater value and differentiate ourselves from our competitors by knowing in depth what the true needs of our clients are and how we make their lives easier in the day to day
It is so important to know the market in its entirety, from production to the situation of customers who consume our products / services.
Once you have defined your objectives, we suggest you read our article on Strategies to attract and retain customers.
From faltronsoft we always encourage our clients to get to know their potential buyers or “Buyer persona” in detail, since this allows us as a digital agency to carry out better focused strategies and with positive results.
And in case you manage the Marketing strategies of your business yourself, you already have a guide to start working on defining your Market Segmentation and your ideal clients.
Until next time!