7 Benefits of Customer Segmentation

Is your marketing program headed for a rough landing? Do your web marketing promotions and campaigns sag under the weight of unfulfilled expectations? Will you get to your destination?

Before you lower your expectations, why not take an alternate view of your target market and customer.

Learn More About Customer Personas

Personas are representations of groups of customers based on income, household composition, education etc.  Personas help to simplify the picture of your customer, and that gives you a clearer view of what they need and prefer. There’s obviously some cost in using a data service however, consider how much time waste and angst you’ll eliminate by understanding your ideal customers.  Personas help you focus on things that matter.

Precor, a fitness manufacturer reported a 74% lift in leads after resegmenting their database. They used the new data to optimize their inbound marketing program which previously had produced very little for them.

In the US, Neilsen Research’s division known as Claritas has developed a persona segmentation system. Originally developed using US Census data, it has evolved and a good number of private market data providers use Claritas’ framework to improve their data products.

Targeting the Right Customer

Most marketing efforts often fail not so much because the promotion was wrong or not well presented. They simply didn’t hit the target with features, benefits or promotion that appealed to the right target audience.

7 Top Benefits of Persona Segmentation

  1. Understanding of customer’s geo location – This can be where they currently live and even where they shop
  2. Understanding of customer needs/interests – based on their income, household composition, and psychographics
  3. Understanding of customer buying habits – when they buy and what they buy
  4. Acquiring better quality leads and improved sales – finding the customers who are actually are qualified to buy your products or services and getting them to buy more.
  5. More efficient use of marketing budget – all marketing collateral and advertising gets seen by real prospects instead of disinterested or absent audiences.
  6. Better analytics from improved feedback – everything from comments to sales data help you drive more sales revenue.
  7. Improved products/services – knowing better what needs to be improved and what isn’t working for you.

Segement Details - Fast Track Families

Figure 1 Fast Track Families is one of 66 clusters that Claritas identifies. This is one of the best groups for lawyers, dentists, landscapers, realty agents, financial experts to approach. They have a good income level and plenty of need.  Screenshot courtesy of Claritas.

Bulls eye Targeting Means Efficiency

Filtering consumers based on their geolocation, spending habits, lifestyle and more can help you market more effectively and potentially raise your profits nicely.

Benefits of Customer Segmentation

We introduced Nielsen’s new market segmentation information service (which they’ve branded MyBestSegments) in a post on targeting wealthy consumers.

Nielsen/Claritas Segmentation

Nielsen Segmentation services come via a 3-Part system as a framework for marketer’s decision making: P$YCLE and Nielsen Prizm, and Nielsen ConneXions.  Their Prizm segmentation system describes 66 unique types of consumers. These are crossed-referenced by factors such as age, education, income, household composition etc.

The screenshot below from their website shows personas in the upper mid to midscale income segments.  The Prizm system will tell you about personas in your geo region, and tell where desirable targets are located in the US.

You can learn more about each of their 66 clusters and drill down for more actionable insight. Visit the Prizm dashboard and try it out.

Targeting Households and Age groups with Segmentation tools

Creating Compelling Content for Your Target Audience

It’s not enough that your web content is valuable to readers. First, it must reach them via SEO, or social media outreach, engage their imagination, build interest and intent, and finally get them to commit to action.

Our content development team researches and creates high quality content ranging from how to articles to Tweets to videos to make the best branded impression on target audiences. We can do the same for you.

It’s unwise to avoid setting up your social media pages. The brand value and customer affinity benefits are real. However, users will be disappointed in what they may view as being sparse half-hearted effort. Learn more about social’s rising importance and how to use tools such as Twitter, Facebook, and Linkedin.

As a professional services firm or manufacturer, social pages let you develop a positive brand image, get your message out there, and gather great feedback from customers. Find out questions to ask about social media.


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