The Importance of Customer Segmentation in Consumer Research
What is Customer Segmentation?
Customer segmentation is a market research process in which customers are put into categories or “segments” based on their behaviours, demographics, characteristics or preferences. Customer segmentation gives you a more detailed picture of your target audience, allowing you to target customers who are more likely to be interested in your offering.
(This customer persona profile is for illustration purposes only)
Uncovering Patterns and Trends Leads to a Deeper Understanding of Your Target Audience
Identifying customer segments and personas is crucial to understanding your target market. Once you uncover patterns and trends, you begin to create a more detailed picture of who is really buying your product, and what might they really want. A deeper study of customer segmentation can uncover more details such as hobbies, location type, and personality attributes of your target audience.
At Split Second Research, we take customer segmentation a step further by using implicit methods to reveal subconscious drivers. Our detailed customer personas go beyond basic demographic information and delve into the motivations, preferences, and behaviours of your customers. We do this by using scientifically proven implicit, market research techniques combined with traditional, explicit surveys.
For example, a men’s fragrance brand may reveal that one of their customer personas explicitly wants to feel adventurous and energetic, but implicitly wants to feel romantic and powerful.
By understanding this powerful combination of your customers’ needs and desires, you can tailor your products and services accordingly, to meet both their implicit and explicit requirements.
The Importance of Customer Segmentation in Digital and Multi-Channel Marketing
There is significant evidence to suggest that segmenting customers is crucial in digital and multi-channel marketing. Here are some studies and sources that support this claim:
- A study by Deloitte found that companies that use customer personas in their marketing strategies are 60% more profitable than those that don’t. This suggests that understanding the characteristics, preferences, and behaviours of different customer segments can help businesses tailor their marketing messages and offers to better resonate with their target audience.
- According to a report by Salesforce, 52% of consumers are likely to switch brands if a company doesn’t personalise their communications with them. This highlights the importance of tailoring marketing messages to the individual needs and preferences of customers.
- A study by Accenture found that personalisation can drive a 5-15% increase in revenue for businesses across multiple industries. This suggests that segmenting customers and creating targeted marketing campaigns can have a significant impact.
- According to a study by Experian, personalised emails have a 29% higher open rate and a 41% higher click-through rate than non-personalised emails. This highlights the importance of segmenting customers and tailoring marketing messages to their specific needs and preferences.
Overall, these studies suggest that segmenting customers is crucial in digital and multi-channel marketing. By understanding the unique characteristics, preferences, and behaviours of different customer segments, businesses can create targeted marketing campaigns. As a result, a more targeted approach would be more effective in acquiring and retaining customers, driving revenue, and building brand loyalty.
Understanding the True Needs and Desires of Your Target Audience
At Split Second Research, our expertise lies in providing you with comprehensive insights into your customer base. Through our extensive research and analysis, we can help you identify the different groups of customers that your business serves. We delve deep into the data to uncover patterns and trends that may not be immediately apparent, allowing you to refine your marketing strategy and better target your customers.
At Split Second Research, we take customer segmentation a step further by creating detailed customer personas. Our personas go beyond basic demographic information and delve into the motivations, preferences, and behaviours of your customers. By understanding your customers’ needs and desires, you can tailor your products and services to meet their specific demands.
Our data experts use a combination of quantitative and qualitative research methods to gather insights into your customers. We conduct surveys, focus groups, and interviews, among other techniques, to get a comprehensive understanding of your customers’ behaviour and preferences.
(This customer persona profile is for illustration purposes only)
Personalise Your Marketing Strategy
With our help, you can gain a competitive edge by creating personalised experiences for your customers. By knowing your customers intimately, you can tailor your marketing messages, product offerings, and customer service to create a more engaging and satisfying experience. Contact us today to learn how we can help you identify your customer segments and personas to help grow your business.
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