Understanding & Segmenting Your Customer - Part II (MI)

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Understanding & Segmen/ng Your Customer – Part II

GeCng the Right Customer For Your Marke<ng Message


Know Your Customer Types


The Resistant Customer Ø Mindset: Hates your company and holds deep resentment for your brand

Ø  Behavior: – Will spread nega<ve word of mouth wherever possible

– Took their experience with your brand personally and is looking for revenge

– Will defect to your compe<tor first chance they get

Ø  Loyalty: Zero Ø  Possibility of Defec/on: Extremely High (you can’t save this group)


The Indifferent Customer Ø Mindset: Sees your company/product/service as nothing more than a commodity

Ø  Behavior – Will always try to get lower prices to the point of near zero margin

– They will promise volume or future business, but see li"le unique value in your offering

– Always willing to walk away from the sale because they have other op<ons available

Ø  Loyalty: One Ø  Possibility for Defec/on: Very High


The Acceptant Customer Ø Mindset: Expects your customer to provide the maximum of what’s asked and nothing more

Ø  Behavior: – Doesn’t think of your brand un<l absolutely necessary

– Comes to you because you have become a habit or more convenient choice

– Maybe aware of other, be"er op<ons, but simply hasn’t made the effort to pursue them

Ø  Loyalty: Two Ø  Possibility for Defec/on: High

– Customer expecta<ons can outpace what you provide


The Preferen<al Customer Ø Mindset: Has grown to like your brand and tends to understand the unique value that you provide

Ø  Behavior: – Most of us make the mistake of making this customer type the top of our customer pyramid

– When given a choice, they will probably con<nue to use your brand

– Very aware of industry trends and can surprise by defec<ng if you have not given them benefits or raised the bar on service or innova<on

Ø  Loyalty: Three Ø  Possibility for Defec/on: Somewhat High


The Evangelist Ø Mindset: The pinnacle of the customer rela<onship and would buy anything you offer

Ø  Behavior: – They tell everyone they know about your company

– Men<ons how sa<sfied they are even in casual conversa<ons

– Your brand has become part of their life

– Finds personal meaning with your brand

– Worth their weight in gold because they do more to grow your business than any ad campaign

Ø  Loyalty: Four Ø  Possibility for Defec/on: None


The Customer Profile Who is my target customer?


When we talk about profiling customers, we start with the basics – or what is know as the old way….


Old Way Standard Demographics

Age, Race, Income,

Educa<on, Family Size, Employment


Now this way has given marketers a great deal of informa<on over the decades, it has not improved the marke<ng performance of our ac<vi<es and campaigns


Why?


The standard demographics are a very general way of looking at a customer – it gives us insights but not details which we need to drive our marke<ng


40+ Rs. 200,000+

Master’s Degree

Business Owner

Family of 2

Middle Eastern


This is the limita<on of the old way of marke<ng segmenta<on


New Way – Audience Segmenta/on GeCng to the root of your customer


When you use a audience segmenta<on method, you are be"er able to break down your customer into clear sets of detail that allow you to target them more effec<vely


Is audience segmenta<on just about behaviors?


When we work with this method, we start from a different point than the tradi<onal demographics


Where do you think we start in this method?


Life Roles are the different things that we are that make up our buying decisions.


When marketers start with life roles, we are be"er able to define our customer because different behaviors fall into the different roles we carry in life.


When you define someone’s life roles, you are be"er able to define

their – behaviors, habits, interests and

purchasing decisions


Understanding Market Segmenta/on Learning How to Break Down Your Customer’s Into Groups


Market segmenta/on is the process that companies use to divide large markets into small markets that can be reached more efficiently and effec<vely with products and services that match their unique needs


Market Segmenta<on


Market Segmenta<on

Geographic segmenta/on

Demographic segmenta/on

Psychographic segmenta/on

Behavioral segmenta/on

Divides the market into different geographical units such as na<ons, regions, states, coun<es, or ci<es

Divides the market into groups based on

variables such as age, gender, family

size, income, occupa<on and

educa<on

Divides buyers into groups based on their knowledge, aCtudes, uses, or

responses to a product

Divides buyers into different groups based on social class, lifestyle, or personality traits


How Do We Market To These Segments?


Marke<ng Segmenta<on

100% of visitors 100% of visitors

1 segment = all 16 segments = all

All New vs. Returning

4 Key Products

8 Major Markets

16 Visitor Personas


Market Targe<ng

Undifferen<ated Marke<ng

Differen<ated Marke<ng

Concentrated Marke<ng MicroMarke<ng

Mass Segmented Niche Local/Individual

Targets the whole market with one offer Mass marke<ng Focuses on common needs rather than what’s different

Targets several different market segments and designs separate offers for each to achieve higher sales and stronger posi<on

Targets a small share of a large market Limited company resources Knowledge of the market More effec<ve and efficient

Prac<ce of tailoring products and marke<ng programs to suit the tastes of specific individuals and loca<ons


Price

Volume

Direct Sales

Fill by ad networks

Results from Mass Marke<ng


Fill by ad networks

Price

Volume

Direct Sales

New Revenue Audience-‐based selling

Results from Market Segmenta<on


Price

Volume

Direct Sales

Fill by ad networks

New Revenue

Audience-‐based selling

Results from Audience Targe<ng

Understanding & Segmenting Your Customer - Part II (MI)

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Transcript of Understanding & Segmenting Your Customer - Part II (MI)