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Customer segmentation, targeting and positioning is by far one of the oldest yet dependable strategy any organization can employ for their business. The strategic process is relatively simple as long as all the information is available.
So how does this work?
Step 1: Create a defined criteria for segmentation. The criteria can be the basic demographics of your customers such us: Gender, Age Range, Profession, etc. Add some transactional information to further provide deeper insights such as: Frequency of Purchase, Time of Purchase, Types of Purchase, Average sale per purchase, etc.
Step 2: Segment your market based on the defined criteria. Segmenting can be a mixed and match of anything. This will really depend much on the creativity of your team and will require deeper and deeper analysis. You need to set a certain threshold on how the deep the initial analysis should be or else you will never stop analyzing your data.
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Step 3: Customized your positioning for each target segment, primarily based on their personality, behavior and lastly, based on your intent for each target segment (eg. Do you want to increase their visits, do you want to increase the average sale per purchase per customer, etc.)
Step 4: The most important step, Implement a campaign, a strategy that employs all the information you were able to output from steps 1-3.
Well, there you have it. As we have said, the process is relatively simple, but the actual work is tough. Great information can be extracted from even the simplest data set, just be creative and collaborative tive.