The Bravo Network identifies their besties as Metro Competitors, Newborn Grown-Ups, Will and Graces, PTA Trendsetters and Better Me’s.
Do you know who your best friends are (from a business perspective)? Who are the pockets of customers who are most influential and valuable to you, and how should you engage them?
Bain & Co. defines customer segmentation as “the subdivision of a market into discrete customer groups that share similar characteristics.” Pretty straightforward, right?
Segmenting your customer and prospect base by logical, actionable criteria can turn marketing mayhem into a meaningful marketing. Rather than diluting yourself with a generic message and engagement approach, you can focus and magnify your impact.
This year was a big year for customer segmentation projects here at Mythology. We helped non-profits such as the National Boy Scouts of America identify priority segments for launching the Summit Bechtel Reserve and International Justice Mission prioritize key pockets of avid advocates to grow in their fight against human trafficking.
Corporations weren’t far behind. A major insurance firm needed to improve their emotional connection with their customers, so we helped map the right audience triggers. A gaming company needed to transition from good old coin-operated bar games to the fast-growing iPad consumer market, so we helped develop influencer audiences to target.
Unfortunately, there are many ways to segment and it can get pretty confusing. You could potentially target a group of similar customers by any number of criteria:
- Demographic – Stuff you can easily find out about people such as age or income.
- Geographic – It’s pretty easy to figure out who’s in your market region, if you’re limited to that.
- Psychographic – Lifestyle preferences and core beliefs can be reliable predictors of response.
- Behavioral – Identifying who and when the best targets are open to your value proposition based on recent or consistent things they do, such as visiting a web site or moving from one community to another.
So which do you pick, or which combinations do you concoct? The simplistic but true answer is, whichever helps you engage most effectively and generate the most return on investment (ROI).
In a world where people can gather around random topics instantly via social media, this can require some trial and error. But often you can eliminate more of the error by utilizing test campaigns, simple surveys or social media interaction to capture a relatively good idea of what will generate response and conversion.
We like to look at targeting in terms of emotional archetypes. What role do you play in filling an emotional need for your customers? The answer to that can go a long way in helping you target more people with that need.
At Mythology, we discovered that our best segmentation wasn’t necessarily by industry, or region, or even size of company. We found that the best predictor of whether a client was a “fit” or not was how ambitious they were and how much they recognized building an effective marketing system was key to their growth. Those types of clients value what Mythology brings to the table with our comprehensive approach to growing marketing ROI.
Everyone can’t be your best friend. But those special friendship connections can often last a lifetime.