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Segmentation picks up where demographics leaves off in regards to helping you to understand your customer base, and which individuals or groups to target when selling your service or product. According to netmba.com, “A good market segmentation will result in segment members that are internally homogenous and externally heterogeneous; that is, as similar as possible within the segment, and as different as possible between segments.”
Segmentation uses big data, mined online through media such as blogs, forums, social media networks, and websites. People leave a data trail when they use the internet to interact with people or businesses. This data offers a vast amount of valuable information for identifying potential customers.
Segmentation is more specific than demographics. Where demographics relies on surveys and customer responses, segmentation relies on people’s actions to understand their interests and needs. The huge amount of available data that is now accessible gives the possibility to delve deeper into specifics about who your customers are as individuals, and therefore use targeted advertising more efficiently. In this way, it is easier to identify your potential leads and market segments.
Today’s extensive data provides information enabling the further segmentation of customers into such areas as self-understanding and identity, value systems, politics, attitudes, habits, and expressed opinions, as well as the existing ability and desire to make a purchase. B2B segmentation may lead to an assessment of the value of customers in regards to factors such as income and loyalty.
Segmentation uses demographic information such as location and income then expands upon that, gathering and incorporating information gleaned from big data. Today’s marketing incorporates online marketing strategies by using data mined online. The information available online is much more extensive than that used in traditional demographics. Marketers now have access to much more specialized data as a result.
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