Concentrate to succeed: 5 reasons to segment your clients?

Client Segmentation enables the concentration of your valuable and scarce resources to grow your business.

What is Client Segmentation? It is the subdivision of a market into discrete client groups that share similar characteristics.

Here are 5 reasons why successful companies adopt client segmentation:

1. Provides Focus: It provides a powerful means to identify client needs that you are either currently serving or plan to serve.
2. Resource Allocation: This becomes the principal basis for allocating resources for all client facing investments – product development, marketing and service delivery.
3. New Offers: Companies that identify and service segments can outperform the competition by developing uniquely appealing products and services.
4. Increase Profits: It enables a company to customise its offerings to segments that are the most profitable and serve them with a distinct competitive advantage.
5. Maximise Value: Prioritising helps companies develop marketing campaigns and pricing strategies to extract maximum value from these chosen segments.

Less is more

There are many segments to choose from, but only a few that your specific clients fit into.  For this reason, selecting segments must be done with precision to reap the rewards when executing your value proposition, to grow your business.