Why market segmentation is important for your company

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Why market segmentation is important for your company

Modern customers are overwhelmed with choices and have a tough time deciding on the best option for them. Too many options can make decision-making difficult and lead to fewer sales. Companies, without correct segmentation, cannot adequately serve their market and corporate management is suddenly swamped with support problems. If you want a better insight into your customer base, our iCustomer Market Segmentation can help you with it.

Ankita Singla, Wazzeer – Smart Platform for Legal, Accounting and Compliance Services, suggests:

Market segmentation enables to identify market opportunities. The marketer can study the needs of each segment in the light of current offerings by the competitors. From such study, the marketer can find out the current satisfaction of customers. Segments with a low level of satisfaction from present offering may represent excellent market opportunities.

Instead of one marketing programme aimed to draw in all potential buyers, sellers can create separate marketing programmes designed to satisfy the needs of different customers. Proper advertising and sales promotional appeals can be made depending on the target audience.

As she states in the following text – With market segmentation, you can use your resources more efficiently.

By tailoring marketing programme to individual market segments, management can do a better marketing job and make more efficient use of marketing resources.

Ashley Minogue, Director of Growth at OpenView Venture Partners, points on key benefits of market segmentation

  1. Focusing your marketing: Without taking the time to conduct a market segmentation exercise, you run the risk of messaging so broad that you’re actually speaking to no one. Market segmentation will align your marketing team on who they want to target and give them a deeper understanding of their specific needs and challenges.
  2. Increasing the efficiency of your sales team: Market segmentation takes the guessing work out of your sales team’s prospecting efforts. By directing your sales team focus on higher priority segments, they will have a greater probability of closing deals, driving up average selling price (ASP) and increasing their overall pipeline contribution.
  3. Higher lifetime customer value: Selling into the wrong customer segment comes at a cost. These clients may have a higher churn rate or lower up-sell potential after the initial purchase has been made. Staying away from these types of customers and focusing on your highest potential customers will promote the stability of your customer base.

If your company has a large number of customers, you can save valuable time and create specific, measurable customer segments with our iCustomer Market Segmentation software.

What are the benefits of market segmentation?

As Ankita Singla notices:

Proper marketing segmentation can facilitate customer satisfaction.

Andrei Zinkevich, B2B marketing consultant | Entrepreneur |Founder of Getleado, says:

When we focus on a specific market segment, we can create more precise offer because we know the needs and the struggles of companies from this segment.

…This always leads to higher conversions, ROI, and revenue.

Connor Barrett, Marketing Executive at Wired Plus, points out:

The more specific your list segments are, the more likely you are to satisfy the needs of the people you send content to. This is especially useful when you have a large and diverse group of customers.

Make your marketing more effective with the help of the various features of our iCustomer Market Segmentation – tracking results, data integration, scheduled processing, all segmentation bases in one place. In the times where everything is procurable, it is crucial to listen to your customers and provide them with what they want.

Source: https://www.quora.com/What-is-the-significance-of-market-segmentation

By |2019-03-21T10:37:04+01:00January 15th, 2019|News, Products|0 Comments

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