Welcome back, this article is part 2 of the customer segmentation. In part 1, we highlighted what is customer segmentation? the segmentation basis, and the importance of using a customer segmentation strategy for your business.
Let’s go ahead with the next advantage a business can achieve with the customer segmentation:
Business Transformation: Along with the growth in conversions and sales, there are two ways how your business transforms with growth.
Business transformation can happen with the expansion of the area or with the development of the products and services. Customer segmentation helps you with the knowledge of where most of the potential customers are coming for, and you can set up your business in that particular area.
Once your company is financially ready to expand, you can extend the list of products and services provided by your company to the consumers. Once you gained the trust of your customers with your previous product, which helped them in a certain way, you can come up with more products for your customers.
Retain Your Customers: As we’ve talked about everywhere this article, customer segmentation empowers a business to fine-tune its products and services as per the requirement of your customers, which in return intensifies the customers’ trust towards your brand.
Gaining customers trust helps your business because these customers are more likely to return to your business whenever they find themselves in the same situation.
Properly executed customer segmentation allows a business to stay in touch with the consumers even after the sale of products and services. A business might prefer providing the consumer with the benefits of the products and services they are using or if any updates are available, getting that in customers’ knowledge.
Service at the Right Time: Customer segmentation helps your business to understand when your particular customer needs the service, yes not the complete database of your customer we are talking about an individual consumer.
Every customer will require your service ones, but approaching everyone at the same time will not give you the result; instead, approaching the consumer when they need the service is crucial.
With a clear understanding of who your consumers are, you know when they will purchase your product or service, and you will be ready for it.
Price Optimization: When you are aware of your customer social status or financial status, your business will be at a great place to offer them with the price which is suitable for your customer and business.
With the price optimization, you take care of your customer value for money and also ensure an increase in your business revenue statement. The focus should completely be on to increase the revenue of the business, not the sales. Revenue growth opens the gate of competition for your business.
According to the report of the Forrester, an American market research company that provides advice on the real and potential impact of technology, 33% of businesses practicing customer segmentation state that they find it remarkably impactful.
The essential feature of the customer segmentation is to understand as much as possible about your consumers so that you can provide them with product and service that makes them feel special while engaging with your brand.