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Segmentation

No company’s customers’ needs are all the same. Why is it, then, that all too often companies have a “one size fits all” philosophy, leaving many customers feeling unfulfilled?

Here at Deep See, we believe the best segmentation is one that gets as close as possible to meeting customers’ needs – after all, this is more likely to resonate with customers and is much more difficult for a competitor to copy. Thus, segmentation lies at the heart of all successful marketing campaigns; in other words, finding groups of people with common needs so that they can be targeted with the most appropriate product, service or marketing message that resonates with their specific needs. In most consumer markets, needs correspond to value. In other words, if consumers really need something, they will value it and pay for it.

Deep See can help your company not only identify different segments in your consumer markets but also create different customer value propositions  so that you can more closely meet their needs. The major benefits of segmentation are fourfold:

  • Deliver improved profitability through value-added pricing
  • Gain market share by targeted marketing
  • Differentiate your offering to the competition
  • Improve customer retention through providing a variety of offerings in line with a customer’s stage in their life-cycle (after all, needs change over time)

The Deep See team works on the renowned ‘5D’ five-phase segmentation model which is briefly outlined below:

Phase 1: Are your segments Distinctive?

If you can’t easily describe or explain the differentiating characteristics of your different segments then they don’t actually exist!

Phase 2: Are your segments Detectable?

Can you easily place an existing or potential customer into one of your defined segments? If you can’t, the segment shouldn’t exist!

Phase 3: Is your segmentation Durable?

Your different segments need to have longevity otherwise your different strategies for targeting your consumers aren’t going to last or have any effect in the long run.

Phase 4: Is your segmentation Desirable?

One of the main reasons for carrying out segmentation is to meet consumer needs but also make increased profits. You cannot please all the people all of the time so you will need to pick and choose your battlegrounds carefully. It may not be advisable to target all segments in the market; rather just those that you are most competitively aligned to succeed in.

Phase 5: Is your segmentation Doable?

And finally, remember that each one of your segments needs a separate CVP, separate product/service, separate marketing plan and therefore separate marketing budget. If you have too many segments then it could get too costly!

It is not hard to grasp the many benefits of segmenting a customer base; the main difficulty is the implementation. If you are looking to make a difference in your marketplace, contact the Deep See team and we will talk to you about how we can help enhance your consumer segmentation strategy.

Contact us now to find out more and let us help you grow your business.

Looking Further. Seeing More.