Tutorial 4 Segmenting your customers Customers are THE

Tutorial 4 – Segmenting your customers Customers are THE most important thing in your business. But how much do you know about them? The more we know about our customers – who they are, what they do, what do they think – the more we can identify with them and provide what they need. That may be the products they want to buy, how to get in touch with them or what to say when you do. By sorting our customers into groups or ‘segmenting’ them, we can build up specific strategies for each group which may affect the products or services we create, the marketing channels we choose, or the language we use to talk to them. EXERCISE – Look through your customer data to find similarities in their profiles and try to create some distinct groups. Try to understand who they are, what defines them and also what makes them different from other groups of customers. There is no limit as to the number of segments, but for now, try for three or four to get you going. On the next page are some suggestions on how you might be able to segment your database Good luck!

Tutorial 4 – Segmenting you customers For B 2 C, segmentation is focussed on your consumer or end user… 1. Geographic – Where do they live 2. Demographic – Who are they 3. Psychographics – Why do they buy 4. Behaviour – what are they buying for For B 2 B, examples of segments you can try… 1. Industry 2. Number of employees 3. Products previously purchased from the company 4. Location

Segment name Who are they? What do they buy? TS How do we talk to them?