How To Identify And Select The Right Customers

Today we will focus on identifying your business’s audience and deciding which one serves your vision best.

The variables of segmentation

• Geographic
  The country, city, or region you intend to sell gives a clue about the people you will meet there. The density of the particular area, such as whether it is urban, suburban, rural, etc., also reveals some extra information about the potential customers. In a more raw estimation, you can even consider the climatic zone. The climatic zone will not only tell you what the habits of these people are – such as what type of clothes they are wearing- but also what kind of people they are, meaning if they are open and communicative, etc.
• Demographic
  This is one of the most crucial aspects. Knowing the age group as well as the sex of the client is half the way to understanding who they are. The age, in particular, gives a clue about the generation. You can see if they are Millennials or Baby-boomers for example. Other details, however, also have to be considered. Nationality and race are important to identify the audience. Especially in multicultural countries like the United States, where people from all over the world live together, demographic data are essential. Nationality may also mean different religions, beliefs, and diets. In addition, you can think about what stage the clients are in their lives -single or married, etc.- and how big their family is. If they buy your product, will another family member buy it too? Finally, their place in society. Income, education, and occupation will tell you what they are looking for and how much they are willing to spend.
• Psychographic
  Social class, lifestyle, and personality are the main pillars of psychographic analysis of the segments in a market. The personality is often related to the birthplace of the person but still refers to their individual habits. The lifestyle could be considered as the orientation of a person’s life. Leaders have different needs than followers or travelers, for example. Social class will determine not only the budget of the client but also the way they think they should act as a consuming individual.
• Behavioral
  Now let’s focus on where the clients stand regarding the category of products you are about to sell. Are they aware of the product you sell, and what is their exact readiness stage? How do they feel about it? Are they open to buying it or at least trying it? This is their attitude towards the product. Do those who already use similar products seem loyal to the particular product? Are they engaged with the brand they already use? Will they be curious to discover the new alternatives you will have to offer? People who already consume the goods you intend to sell can also be divided into heavy, medium, and light users. This practically tells us how much we expect to earn from their purchases if they turn to our product. Apart from the user rate, we have the user status, which informs us if they have tried a similar product, if they are still using it, and if, for some reason, they stopped using the particular product. The occasion is also a vital parameter. When will people use our product? It is, for instance, much preferable to choose a segment where people will use the product regularly than focus on an industry where customers will only buy the product for a special occasion. The last criterion is related to the benefits sought. This part needs further consideration because consumers will focus on specific characteristics to buy a particular item. They may look for quality, service, luxury, convenience, reasonable prices, and so on.

Where will you turn to?
Having a raw estimation of the market out there will give you a hint of your choices. To determine which group can fit your company, you need to focus on some aspects.
First of all, the segment has to be accessible. Focus on this category of customers you can easily access. The second part is that it has to be large enough so that you can accomplish many sails and finally have considerable profit. Keep your target group large and yet manageable. Segments should also be differentiable so that you can distinguish and serve them appropriately. Last but not least, remember that it has to offer the opportunity for you to serve them. In other words, they should be actionable so that you can develop a promising marketing strategy.

Have you read?
Interoperability: The Key to Getting and Staying on the Leading Edge of Your Industry by Rhett Power.
The importance of Digital Transformation Framework for Organizations by Vangelis Kotselas.
Can a fallacy manipulate our data-driven world by Riccardo Pandini.
5 ways to deal with difficult people at work by Darren Fleming.
The Impact of the Metaverse on Finance Industry.