Gordon Tang is a specialist in many lines of business and one are is customer segmentation.

Customer segmentation is working out all the different categories of people who are your customers or potential customers. It is easy to think that you only have one group or type of people who will buy your products this is very rarely true. By establishing all of the different types of customers you have you can do a much better in-depth analysis of them, which can only help promote further your business’s success.

You will grow to better understand your customer base and work out what are their influences and triggers. This means that whenever you try to reach them through content on your website of social media tools, you will be saying things they want to hear and consequently they will feel much more engaged. This will mean that they become more affectionate towards your company which is pleasing them. So, the smaller groups, that we club our customers or potential customers into, should be based upon their attributes. You need to establish what sort of marketing approach they prefer such as telephone or advertising or whether it is blogs or Facebook. In this way you can appeal to all of your market in the best way for them, a way that they will relate to.

So, what attributes do we use? You may ask. Well we can base it on their:

  • Spending patterns
  • Sex
  • Age
  • Socio-economic group
  • Where they reside

These noted differences will affect their spending patterns and purchases.

Once you know what and when they are buying you are able to cross sell or up sell. By targeting customers in groups determined by their spending then you can encourage all in that group to up their spending a little bit, this will have a big impact on the company as a whole. This might seem as it is a mercenary sales tool, but it isn’t, well not just that, the clients that you are reaching will be happy that you are reaching them and offering advice. They will consider it good customer service that you are talking to them how they like to be talked to and with relevant content that they enjoy. They will feel wanted and needed.

New clients can be targeted also but in a different way. You should try to determine what people you are aiming for. If there are wide and varied differences in your potential clients, then you know that you need to attract and reach out to them in different ways. They will respond differently. For example if one group is

  • Females
  • Housewives
  • Disposable income
  • Lots of time available
  • Like to be out and about

And another group is

  • Male
  • Teenagers
  • Love to stay in and play games

You will be completely aware that you will need to reach out to them in different ways. I know these are very extreme, but they help illustrate the idea that we are trying to convey.

Over time you will be able to recognize where a new client fits into your client base very quickly and thus you will instinctively know how to reach to them and how to sell to them.