Any company which is planning to build a successful business eventually faces the need to segment its customer base.
The process of segmentation is the division of the general customer base into separate categories according to the common characteristics or needs of clients.
Classification of customers into groups helps to save money on SMS marketing campaigns as your messages can be targeted on customers who are more likely to be interested in them. Segmentation can be done according to various criteria:
- Geographic segmentation by the location of customers. You can distinguish a group of people living in the same city, district, country or region.
- Demographic segmentation is the division of consumers by gender, age, status, nationality or religion.
- Socio-economic segmentation is the division of customers by their income, education or type of activity.
Many other types of segmentation are possible.
Correct segmentation should look like this:
- Clients of the same segment react to the product in the same way;
- You can give a clear description of the customers of the same segment;
- The segment has a large enough number of customers to justify the costs of advertising.
Segmentation is necessary to work effectively with the customer base and save money on marketing, because by dividing the base into groups by category you can apply a different approach when working with each group. This lets you target only people who have a high likelihood of being interested in your offers. If you’ve done your segmentation right, you can achieve the best return on advertising at minimal cost.