Segmentation is often viewed as the Holy Grail of marketing. People chase after it, hoping that it will solve all their woes. Very few find it, and even fewer make good use of it.
The reason? Perhaps, much like the Holy Grail, the value of segmentation lies more in the context than in itself. There are two ways in which I believe the context of segmentation is (usually) completely overlooked:
1. Segmentation is only the beginning of a process.
Targeting and Positioning are often ignored. If one segment is most profitable to your company, the first two questions to ask are “why?” and “how?”. Why was that segment chosen over others, and how can your business make sure it stays the best option for that segment?
2. Micro-segmentation is merely good enough.
While the majority of businesses are focusing on how many people are in the segments that they target, profitable segments are becoming smaller and smaller. With today’s competitive and informed market, only the very best is good enough. Mass marketing is dying fast, and a quantity-only focus is not sustainable. As far as your consumer is concerned, they are a one person segment. That consumer is the only one with those exact needs. Why would the consumer compromise when there is so much choice?
Luckily with online marketing and social media, micro-segmentation is a reality.
More From AnnaGervai
- 5 easy ways to build your email marketing database
- 6 strategies for using Twitter for your business (chart)
- Building Trust With eCommerce | MarketingGum.com
AnnaGervai Recommends
- Why You Should Have Both a Facebook Fan Page and a Group (TopOneSEO)
- Deciding What Not To Do (Piplzchoice)
