The 2020 Ultimate Guide to Customer Segmentation: Organize Your Customers to Grow Better

2020 Ultimate Guide to Customer Segmentation: Organize Your Customers to Grow Better

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2020 Ultimate Guide to Customer Segmentation: Organize Your Customers to Grow Better

 

In this Ultimate Guide, you will learn why customer segmentation is important to you as it can help you increase your conversion rate and have a greater impact on your current and potential customers.

Sphere of Influence

Think about your sphere of influence, include those that influence you.  These people almost certainly fall into different groups – family, colleagues, supervisors, teachers, business contacts.

You don’t communicate with them all the same way, do you?  Think about how you talk to your friends, is that the same way you talk to your family or a teacher? You probably use different ways of communicating with them and also have different expectations of those contacts and methods they will use to contact you.

There are differences in your customers as well.  Their needs and methods of communication are going to vary. Look at your sales funnel, and you can see there are various groups of people in the funnel.  There are buyers, sellers, couples, singles, millennials, baby boomers, and, probably, other groups.  These groups have varying needs, wants, expectations, pain points, and other traits that differ from group to group. Different groups will have different expectations of you in the way you communicate with them, in terms of what support they expect, and more.

Understanding their unique needs and preferred styles of communication is key to establishing and successfully nurturing business relationships with different customer groups.  As a result, you can be more effective and efficient and are well on the way to exceeding their expectations.

The What of Customer Segmentation

The process of dividing your customers into groups based on factors like demographics, industry, income, and traits such as interests, and common concerns is what is meant by customer segmentation.

Also known as Market Segmentation, it is a simple tool for organizing and managing the relationships your company has with customers. Doing so makes it simpler to customize and personalize your efforts and services to the needs of individual groups. And it will significantly advance loyalty and conversions.

The Why of Customer Segmentation

Customer segmentation is essential for several reasons.  Among them are:

Your level of understanding of their needs will grow so that your content can be tailored more specifically to them

You will be able to target campaigns (marketing, e-mail, etc.) to them that will connect with them and lead to more conversions

Understanding the challenges, individual groups will experience can be used to improve the service you give to customers and enable you to be prepared in advance to help them

Customized content and interactions will lead to higher customer loyalty

You can identify your most valuable customers and the reasons for that

Be more effective in your communications by using preferred channels and platforms

Being where specific segments are

New opportunities will emerge to support customers and offer support and products more efficiently

As you can tell, customer segmentation is worth the investment of your time.  So, let’s look at the more common types and models or segmentation.  While not a comprehensive list, it is enough to get you started.

Customer Segmentation Model

SEGMENTATION MODEL HOW TO SEGMENT CUSTOMERS
Demographic Segmentation Marital Status, income, education, age, and gender
Geographic Segmentation Neighborhood, town, city, state, and country
Psychographic Segmentation Interests, values, personality, and attitude
Technographic Segmentation Desktop-use, Mobile-use, software, and apps
Behavioral Segmentation Habits, tendencies, frequent actions, and feature or product use
Needs-Based Segmentation Needs of specific customer group – must-haves
Value-Based Segmentation Impact of specific customer groups on the business

Strategy for Customer Segmentation

  • Set your goals for customer segmentation

 

  • Select groups of your choice and segment customers

 

  • Target specific segments and reach them

 

  • Analyze and adjust segments as needed

Working your Strategy

1.     Set your goals for customer segmentation

Why are you creating a strategy for customer segmentation?

Look at The Why of Customer Segmentation above.  What do you hope to achieve from this process?  The answer is going to be unique to your business.  No one answer fits all business models.  Set S.M.A.R.T. goals as described in ZipperAgent’s ebook Hyper-Drive Your Success.

 

ZipperAgent hyper-Drive Your Success

1.     Pick your groups and segment your customers

The goals you choose should help you decide how to segment your customers.  Look back over the customer segmentation models to help determine how you will do this.  For example, if one of your goals is to have 15 more listings by the end of the year in a particular neighborhood, it would make sense to have a segment for that neighborhood and probably for baby boomers that are more likely to be sellers.  There is no one correct way to segment your customers and potential customers.  There is your way based on your goals and your specific business.

2.     Target specific segments and reach them

When you have segmented your potential customers and customers, you need to set a plan on how you will reach them.  What blogs will you be writing, what social media channels will you utilize, what posts will you put on each channel of social media, will you be doing geo farming, the list can go on and on.

  • Your marketing should be tailor-made and customized to reach your customers and potential customer where they are in the sales funnel. It should attract those at the top of your funnel, teach those in the middle of your sales funnel, and meet the needs of those nearer the bottom of your funnel.
  • Prior sales can be analyzed to determine what to include in your marketing material. For example, if customers that have purchased homes in a neighborhood have done so because of the school system, you would probably want to emphasize the school system when marketing for that area.
  • Knowing the challenges faced by prior customers in a specific segment can enable you to prepare materials and resources for them based on those challenges.

3.     Review your customer segments and make adjustments as needed.

Reviewing your segmentation work will give you a clearer understanding of how you have organized your customers.  Use this information to make changes and updates if necessary.

Look at new or different ways to segment your customers that make the most sense for you and your business.

If you rebrand, change your services, or revise your customer personas review your customer segmentation and adjust as needed.

Customer Segmentation Software

ZipperAgent software allows any real estate agent, team, or broker to segment their customers and prospects quickly.  Segmentation, with the use of tags, will enable contacts to be segmented into one or more groups.  Marketing with ZipperAgent’s campaign builder can be personalized and targeted to various segments. 

Summary

Customer segmentation will help you boost conversions and sales.  Segmenting customers and prospects will improve the efficiency of your marketing by addressing the specific needs of your customers.

 

Use ZipperAgent for Customer Segmentation.  Interested in starting for free? 

Start For Free

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