For veterans of the marketing world, the idea of customer segmentation is not new. However, even the most grizzled marketing pro will tell you that the advent of customer segmentation changed the marketing game forever. When most resources were once spent trying to find a customer base with no clear definition, breaking things down into segments allowed marketers the ability to focus their attention on specific groups of prospective customers. |
However, it must be said that while customer segmentation has made its mark on the marketing world, the dawn of the digital age of marketing is upon us. This spelled the doom for many of the more antiquated avenues of reaching potential customers, though some would argue that these avenues were once the cornerstones of major successful marketing campaigns for years. Still, digital waits for no one, and with the shift, customer segmentation showed its prowess by still finding a footing in the new digital age.
Given the impact that customer segmentation had on traditional marketing and how it has managed to still be a major force in the digital era, the question has to be asked — just how has customer segmentation changed marketing?
Here are just a few ways:
Proposed A Breakdown of the Potential Market — Instead of trying to appeal to the masses, the ability to create potential markets based on a number of qualities meant that target of a business’s marketing had a better chance of reaching the right people. Whether you went with a demographic, geographic, or even behavioral breakdown, you were seeing your prospective customer in a new, more personalized light.
Adaptation to the Digital Age — Customer segmentation made the shift to the digital age by being an effective marketing tool. While the need for breaking down a customer base in certain ways was still imperative, marketers needed to see the segmentation in a newer, more focused way. In some ways, the new focus may feel a bit more cutthroat, but given how quickly digital messages can reach potential customer, the stakes are certainly high.
Made Unique Nature of Customers the Focus — Customers were no longer just a nameless, faceless blob in a group of other blobs. Customer profiles began to emerge, input about their buying habits proved vital, and businesses now had a person they were trying to reach with their product/service. Everyone wants to feel important, and when it comes to the way we purchase things, we want to feel as though we’re more than just a transaction. Customer segmentation paved the way for this and continues to do so today.
Customer segmentation has made a name for itself for years in the marketing world and with good reason. By allowing businesses to focus on particular groups of potential customers to help drive sales/transactions and not waste resources elsewhere, customer segmentation streamlined the way a business could target a customer in more meaningful ways. Even if the industry terminology may change over time & its use may vary between agencies, customer segmentation will be a prominent player in the marketing world for the foreseeable future.
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