In order to be successful, all businesses should know how to segment their customers so that they can provide better products and services. To segment your customers, you must identify specific needs and characteristics that enable you to attribute customers to discrete groups. Once you have identified customer segments, you can tailor your business strategy to match the needs of your customers, enabling you to build better customer relationships and grow your business.
Customer segmentation is also referred to as market segmentation. We prefer to use the term customer segments as it helps keep the focus on our customers.
To segment, your customers means that you have identified specific needs and/or characteristics of customers that enable you to put them into a discrete customer group.
This enables you to focus your resources on their needs and includes:
This resource has been developed for any business that has customers.
It is worth remembering that every business exists for customers and that customers do not exist for your business.
At the completion of this resource, you will have a clearer understanding of the
• Importance of understanding your customer segments
• Benefits of segmenting your market and customers
• Process of segmentation
• Process for developing a picture of your typical customer
• Common customer and business segments
• Benefits of identifying a niche markets
This resource is an introduction to the process of customer segmentation and aims to help build awareness of the key terms and concepts involved and provide some simple strategies for use within a small business.
Our aim with this resource is to introduce the importance of engaging with your customers regularly to ensure you can develop an understanding of who they are and why they are your customers.
Once you have this understanding you can ensure that your business strategy is aligned to the needs of your customers.