As well as helping your business reach new customers, targeting your approach to existing customers through market segmentation can reinforce and solidify the loyalty of your current customer base. E-commerce sites can benefit from customer segmentation greatly! There’s a lot of confusion around the market segmentation and customer segmentation because they’re so closely related. Using a geographic segmentation allows companies to cater to people living in a specific location. There are many different ways to segment your potential customers but here we’ll examine the 4 main types of market segmentation. Conducting a best current customer segmentation exercise — which is distinct from other types of segmentation analysis — is the best way to meet that imperative. Behavioral Segmentation: A Customer’s Choices. Market segmentation vs customer segmentation. This is incredibly important as customer needs are likely to vary depending on location, especially if you compare rural and urban areas. Segments are created based on observable or reported customer data pertaining to the individual consumer such as age, gender, and race. Some examples can include behavioral and psychographic segmentation, demographic and psychographic, or any other combination you feel fits best for your business. The basis of such segmentation is the lifestyle of the individuals. Demographic Segmentation. You should be able to offer different types of products and promotions for such different segments. Needs-based customer segmentation groups your customers according to what they are looking for in a product. *Approx 10 minute read. 3 types of customer segmentation. Demographic is one of the most common segmentation types used in market research (alongside geographic). Geographic segmentation: This is the simplest form of market segmentation, where customers are classified according to geographic borders. Demographic segmentation is one of the most standard types of market segmentation. Customer Segmentation: Types, Examples And Case Studies Customer segmentation is a marketing method that divides the customers in sub-groups, that share similar characteristics. 2. You don’t care at all about demographics and you just care about occasions such as going out for ice cream, taking a vacation, or as Coke famously did it, being thirsty. Demographic Segmentation ; Geographic Segmentation ; Psychographic Segmentation ; Behavioral Segmentation ; 1. It is also known as Market Segmentation.. Customer value current and future. What are the Types of Customer Segmentation? Thus, if we want to plan a good customer segmentation and targeting strategy, we need to focus on 4 types of market segmentation. Below, we showcase the most popular customer segmentation criteria and tell you exactly how these (and other metrics) can help you achieve your goals. What is Customer Segmentation: The word ‘segment’ denotes ‘division,’ i.e. Customer Segmentation can help a startup on a lot of fronts, namely: Competitiveness; Expansion Ability; Customer Retention; Timely Capitalization; Price Optimization; Generally, there are 4 types of Market Segmentation. Types of customer segments: B2C customer segmentation: Demographic segmentation breaks down the market into segments. From our experience, you need to do over 10 customer interviews to identify core jobs. to divide into parts or sections according to similar characteristics.So customer segmentation is dividing the customers effectively, based on their factors such as age, need, industry type or buying features.. There is an endless number of ways to segment your customer base. Of all the methods of segmentation, this one offers the marketer the most accurate way to target customer segments. Let’s throw some light on them: 1) Demographic segmentation. Visitor Grade (Logged-in or Guest user, Repeating Customer or First-Time user) Obviously, a longtime customer will behave differently than a first-time user. In many cases, a predictive model may be incorporated into the study so that you can group individuals within identified segments based on specific answers to survey questions . Geographic segmentation; Within each of these types of market segmentation, multiple sub-categories further classify audiences and customers. Types of Market Segmentation. Customer segmentation helps you understand what motivates them, and speak directly to those needs. 4 Main Types of Market Segmentation Apple segmentation, targeting and positioning. This model segments customers based on their needs. Who Is This Post For? We also give you a unique view of customer segmentation, along with ready-to-use tactics. The report illustrates the application of the major analytical strategic frameworks in business studies such as SWOT, PESTEL, Porter’s Five Forces, Value Chain analysis, Ansoff Matrix and McKinsey 7S Model on Apple. When reviewing options for targeting, we recommend these main methods. Segmentation helps in this. The individual’s attitude, interest, value help the marketers to classify them into small groups. Hybrid Segmentation. “You have to look at the data and see what segmentation model makes sense for customers, agents, and the business.” These market segmentation types further have several sub-categories under each type, according to which the target customer base is classified. Local business owners small to large. Knowing who your customers are and what they want helps you to tailor your offerings to their tastes, which in turn opens the doors to increased business and sales in the future. This is one of the simplest and most commonly used types of customer segmentation, that sorts a market by variables such as age, gender, marital status, family size, income, education, race, occupation, nationality, religion. It refers to statistical data about a group of people. Market segmentation is a process of dividing a heterogeneous market into relatively more homogenous segments based on certain parameters like geographic, demographic, psychographic, and behavioural. The best customer segmentation outlines customer requirements and gets as close as possible to their needs. Customer segmentation, types of buyers, has always been important, but now that personalization and customer experience are factors that determine a business’ success, effective segmentation is even more important. Customer Retention: Customers retain with a business which understands their needs and fulfils them as they require. Segmentation helps in this. Types of market segmentation With segmentation and targeting, you want to understand how your market will respond in a given situation, like purchasing your products. Behaviouralistic Segmentation Market Segmentation Types. Thus, product, marketing and engineering teams can center the strategy from go-to-market to product development and communication around each sub-group. Customer segmentation is not something you can do in a one-size-fits-all way. Therefore, with billions of people living today with us in the world, you must narrow the pool. Although some of them can work well on their own, you can combine different types of data and make even better campaigns. Apple Inc Report contains a full analysis of Apple segmentation, targeting and positioning and Apple marketing strategy in general. 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