This remains as a universal truth that consumers are God. So, the picture that prevails in the industry is that every marketer is busy in trying to figure out statistics about the consumers. But do these endeavors give sure shot answers to questions like – who are these consumers, what do they specifically want from a product or a service and what can be the most apt business strategy to attract them? Perhaps, the answer will be – No!
Basically, it is erroneous to consider that every customer who shows interest towards a particular product or service will have similar nature. This hints that the market comprises of distinct consumer groups which feature characteristic perspectives, tastes and motivations. So, it demands the implementation of consumer segmentation.
Implementations of Segmentation Research
Segregation research is the way of classifying consumers on the basis of certain common traits. Now this demands the need of a combination of methods. One of the common methods is the classic lifestyle theory that focuses on factors like consumer activities, ideas and interests. Whatever may be the method adopted in carrying out the task, its importance remains fairly the same.
- Interpreting Behavior
While sometimes you may find that the consumer retention is extremely low, at other times some customers show their loyalty by repeated buying. Interpreting the reason behind this disparity is crucial and often serves in improving internal strategies. Who knows, your products must have been satisfying till the time your competitors came up with a better deal that lead to your decreased customer retention! Segmentation research is helpful in tracking this.
- Understand Service Needs
You cannot draw a generalized idea on the levels and kinds of products and services every customers look forward to. While some prefer ‘hand holding’ relationships and end up calling up and meeting the providers often, others prefer to contact only when it becomes extremely necessary. Understanding this and making services tailor made is only possible when you have segmented out your consumers.
- Identifying and Accessing Potential Openings
It is thorough segmentation research that you can identify the lucrative markets, take the first step, plan out strategies that will help you to earn optimum profits from it, and eventually remain in a better position as compared to your competitors.
- Planning Tailor-made Marketing Strategies
Another thing that cannot be generalized is marketing strategy. Every market shows a different trend and type and depends upon different social, economic and cultural variables. So, absence of apt marketing strategy will lead to massive loss! Therefore, segmentation research comes in aid during such scenarios, and helps in plotting different consumer groups and planning marketing strategies that will actively influence each of them.
Tools of Segmentation Research
A full-fledged segmentation research will include more than one tool and strategy. It may comprise of techniques that help in defining the management issues of a business, involve conducting of focus groups to identify potential consumers and correlated purchase processes and implementation of online, offline, live and telephonic surveys.
However, the key elements in these tools is that the data must contain values, the inputs can be listed in a database and found in differentiated marketing channels and the inferences drawn from the differences in consumer attitudes and preferences are logical and prove productive while planning business communications, strategies and products.
Market Quotient has assisted various clients in drawing inferences about their customers and the clients in return have gained tremendously. You can also take the help of our specialist. Contact us today by writing to us at contact@marketquotient.com
