Audience segmentation is the essential basis for your targeted marketing plans. Savvy marketers are very well aware of the importance of audience segmentation. Customers can be segmented on the basis of demographic, needs, interests, web behaviors, billing data and much more.
In my article I will discuss which advantage the audience segmentation yields for the effective marketing strategies.
Market segmentation is needed because in many cases buyers of a product are no homogenous group. Every customer has different individual needs, preferences and characteristics. So to cater these individual variables to make a group of common choices ease the work for a standard marketing strategy.
As I have already told you that segmentation is the basis for developing effective and targeted marketing plan. A segmented oriented marketing approach put forward a number of advantages for the marketers.
Meeting Customer’s Exact Needs
To satisfy a large number of customer’s need within a limited product range seems difficult. You have to prepare different plans, documents, forms, bundles and promotional activities.
For example, if you make a survey for the price of your product then make different pricing models for different customers. A free or trial plan can attract customers who want to invest after having the complete satisfaction about the product.
For light users and small business people there are moderate price plans. For heavy users and large enterprises there is an expensive price plan that includes higher service levels with more features and functions.
Check out the pricing plan of ERP GOLD
The underlying product is basically same just slightly adjusted to meet the needs of different segments of audience.
Sustainable Customer Relationships
The patterns of behavior and preferences of customers change over time. Serving different customer along a customer’s life cycle allow to guide the customers from time to time by presenting them special customized solution for their specific need.
Targeted Communication in Audience Segmentation
Audience Segmentation allows you to communicate in a specific way for the product features that are really going to attract the customer of that segment. These tailored communications highlight those criteria that are relevant for particular segment. They also save you from annoying and losing a customer who do not have common preferences e.g. price vs. reliability vs. prestige
Stimulate Innovation
Segmentation provides information about the particular needs of smaller units in the market. Identifying the advancing needs of such groups for new and improved products gives an idea to create something innovative. It helps you to come forward with a total new and demanding product in the market.
If product is exceeds the customer’s expectations then customer is willing to pay even the higher price for the product. Innovating organizations can have an increased profitability if they apply audience segmentation for their marketing strategies.