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.

Leave a Reply

Your email address will not be published. Required fields are marked *