Imagine you know everything about your target customer: Who they are, what interests them, what motivates them to buy your product, which needs your offering satisfies, and the moment they’re most likely to purchase your product or service. With this much information on your customers, you know exactly how to engage with your audience and attract them to your brand.
Psychographic
Breakdown of customer groups based on internal psychological characteristics that may influence their buying behavior
Why is customer segmentation important?
The better you understand your customers, the easier it is to sell to them
- Create stronger marketing and advertising messages
- Attract high-quality leads
- Pick the best channels
- Increase brand awareness and brand loyalty
- Develop better products
Make Customer Segmentation Easy with GroupSolver
AI technology and expert team can help you eliminate the nuances of customer segmentation and reveal meaningful customer segments with ease.
- See your customers’ stories come to life with our real-time visual insights and interactive platform.
Geographic Geographic segmentation refers to the segmentation of customers based on the region that they live and work in, and the characteristics of that location.
Like demographics, geographic segmentation is relatively easy to implement and useful for companies that have customers around the world or a specialized product that appeals to certain climates or cultures.
Firmographic
Similar to demographic segmentation, but has to do with characteristics that describe a company or organization
What is Customer segmentation?
The process of dividing your target market (potential customers) into groups based on shared characteristics
4 Steps to Customer Segmentation using Survey Research
Identify customer segments using survey research
Demographic
This includes variables such as: Age, Gender, Income, Occupation, Education, Ethnicity
Using multiple types of segmentation to understand your audience
Reviewing the different segmentation categories can help you brainstorm what kind of questions you want to ask your audience, and how you will define or describe your segments
- Even though you pick only one segmentation characteristic to define your segments, you can use other segmentation variables to describe them in more detail
Start with Preliminary (Exploratory) Research
Surveys allow you to quickly collect deep qualitative and quantitative data on your target audience.
- The first step is to design and field an exploratory survey to get initial insights into your customers’ needs, preferences and interests to identify what characteristics or qualities might be important differentiators for your customer groups.
Behavioral
This is the grouping of customers based on their behavior patterns through their interactions with the company.
- Segment based on past purchase behavior (timing, usage, frequency)
- Identify which actions are most likely to lead to a purchase based on previous patterns
Conduct Your Main Segmentation Survey
Test hypotheses and themes revealed in the exploratory study to solidify which characteristics are significant differentiators for your target segments.
- What words would you use to describe yourself as an individual?
- Personal achievement and accomplishing goals
- Protecting human beings and the environment
- Presenting myself well, looking good
- Having fun, seeking new experiences
Step 4: Analyze and Identify Customer Segments
Use the data to identify what’s most important
- Look for the variables that are the biggest differentiators
- Make sure that your segments don’t overlap
- Aim for a manageable number of segments
- Validate results with pricing studies
Step 1: Learn How to Define and Describe Customer Segments
There are four types of customer segmentation research: demographic, psychographic, geographic, and behavioral
