Know your Customer, Know your Business
In order to successfully target your customers with the most relevant offers, we suggest breaking your client base into separate groups who share similar characteristics, such as age, gender, lifestyle, and so on. What this does is not only help in creating marketing targets, but also helping to understand who your clients are and what drives them to you.
When creating these segments, be sure to consider a variety of characteristics, such as:
Behavioural: Who uses your business? How often? What do they do for a living?
Demographics: factual characteristics, such as age, gender, occupation, and income. For example, are the majority of your customers female or male? Where do they live? Are they single or married?
Psychographics (Psychological graphics): values, attitudes, lifestyles. Psychographic information answers questions such as what motivates your customers to buy your products and services? What are their key values? What are their hobbies and habits?
Value-Based: How much are they spending? How much are you spending on keeping or appeasing them? Who are your core monetary suppliers and what do they have in common?
Based on any combination of these characteristics, you can develop key customer segments. Use these to create offers and messages designed to generate the most profit from each unique customer group. This can lead to enhanced loyalty, increase customer value, or provide products and services to a particular geographic area.
How well do you know your customer base? Try and create at least three distinct groups using different characteristics and think of at least one offer that would appeal to that particular group over the others.