12 Apr Building Your Base
Building Up Your Base: Segmenting Customers
Hi all, Will here again. We’re back on track with our series on the digital marketplace and how to make an impact, marketing what matters. We’ll kick back in with looking at how to build your customer base by segmenting and targeting customers.
Playing along with our theme, it doesn’t matter how good what you’re offering is if you can’t reach people. Your company needs to be able to reach its customers, and the first question that should come to mind is “Who are our customers?” After all, how can you really amp up your sales without understanding who your customers are? That’s where segmenting comes in! Segmenting involves finding similarities and differences between customers, grouping them into different types of customers.
Now what exactly are we looking for when we are segmenting customers? Patterns, and similarities between them. This could be payment methods, geographic locations (if online), types of products purchased. Segmentation varies from industry to industry, with similarities between individual customers being the underlying link.
Naturally, word of mouth is the easiest method of advertisement for your company. Happy customers will usually tell other potential customers that would enjoy your products or services about your business. For your company, like attracts like. Word of mouth is integral for small business growth, as it helps serve as the reference point for segmenting your customers. Good reviews, recommendations, and buzz generated by people using your services will attract the attention of people that are similarly interested in your service.
Your word of mouth customers is fine when getting started but expanding will help you meet other people’s needs as well. Once you’ve established a good understanding of what kind of customers buy your products or use your services, you can shake up the way you go about advertising. Are most of your customers in their late teens to early-mid-twenties? Consider moving your promotions to Facebook and Twitter. Are your customers professionals or other companies? Consider LinkedIn and other sites that help agents and clients meet. An older customer base would require changing up your promotions like through coupons or possibly through newspaper ads. Targeting these consumers with strategically placed promotions is key for driving your higher and higher.
There is a method to your customers’ madness. If you understand your customers, you will find the best ways to reach and promote to them. After all, not everybody reads the newspaper (even if they probably should), watches TV, or uses social media. Different crowds want a different show, so to speak. Finding this best method will expand your business well beyond its current customers.
It takes a bit of work, and a little bit of playing by ear, but I’m sure that now you will be able to expand by better understanding the customers that use your products and services, how to reach them, and how to serve them.