One of the reasons it’s so important for business owners to have good data capture and review processes in place is that doing so allows for audience segmentation, and audience segmentation can help you grow your business.
What is Audience Segmentation?
Your customers are a diverse group of people. Delving into the details of your data will help you better understand who they are and why they choose to do business with you. Audience segmentation is the practice of identifying significantly-sized groups of your customers, based on their interests, purchasing behaviors, or other unifying characteristics.
For example, a florist may examine their data to find they have one group of customers seeking wedding flowers, another group that chooses them for hospital delivery, and a third for corporate flowers & gift baskets. These groups don’t overlap, and their shopping and purchasing behaviors are different. It makes sense to market to each group individually, and audience segmentation allows you to do so.
3 Ways Audience Segmentation Will Help Your Business
Identify your customers accurately
The process of audience segmentation can be eye-opening for the business owner. Many of us function with an idea of our typical customer in mind, but the reality is that you may be doing business with lots of people who don’t fit that profile. Your customers may be younger than you thought, or more affluent – factors that could influence everything from what products & services you provide to incentive offers and messaging channels.
Achieve clarity about what customers value about your business
You can segment your audience by behavior. Perhaps a significant portion of your customer base chooses you because you offer fast shipping, while others are driven by price. Your digital data reveals how much time shoppers spend doing things like reviewing shipping information and comparing similar products. Understanding what motivates your customers to choose you can help you focus your efforts on providing more of what they value most – a smart route to sustainable business growth.
Allow for efficient marketing
Knowing who your customers are and what they value makes communicating effectively with them easier. Audience segmentation can help you choose the most effective marketing channels, fine tune your messaging to reach a specific audience, and strengthen your relationship with your customers who feel you’re speaking directly to them.