For anyone who runs their own business, there is always a combination of emotions that makes launching both the exhilarating moment of your life, as well as the most nauseating thing you've ever experienced. As time goes on, you find that while you are enjoying some success because of the curiosity factor, you are not finding the success you wish you could get, and this is where customer segmentation can make the biggest difference in the world.
Customer segmentation, in and of itself, is really nothing more than splitting your customer base into specific groups and marketing directly to said groups. Seems simple, right? Well, if you do not know how to make this happen, you're probably missing out on the success you feel you should have.
There is one more wrench to throw into things and that is how you've managed your marketing budget. Marketing costs money and time, two of the most valuable resources you have. It also takes dedication to making it all work, which means you're probably taking time away from other important areas in running your business. If you're only "sort of" working on your marketing and "kind of" investing in some customer outreach, you're in some trouble.
So, how exactly does customer segmentation save you money in terms of your marketing budget? Here are a few ways:
It's All About Identifying Specifics & Marketing to Them – Marketing is often done by the same person that owns & runs their business. While this looks like a way to save money, you're probably not a marketing expert. Customer segmentation & the agencies that do it well can identify exactly where you should be investing your marketing money so that you do not waste resources. The savings can then be reinvested into the company.
Targeted Advertising with Social Media and Email – No matter if your customer base is tech-savvy or basically basic in their computer usage, a well-implemented customer segmentation campaign can target your customer groups where they spend the most time. This means that you're not spending money in places where your message will not be seen.
Brand Loyalty Through "The Little Things" – One of the ways many companies make their mark is by doing something unique for their customers, such as adding some candy to an order. They do not advertise it, but it does put a smile on their customer's face. Moreover, this little thing, as well as the product or service, are spread by word of mouth. Customer segmentation allows for identifying specific things about your customer that, in turn, allow you to figure out what little thing might appeal to them.
Some might consider customer segmentation as a "magic bullet" for your marketing, but what it really does is take a very direct approach of reaching your customer base and making your product or service consistently sell. Moreover, it helps to create the foundation for a static marketing strategy that will adapt to market changes over time. This means that even if there are ebbs and flows, you have a greater chance of being able to navigate changing times.