How to Understand Customer Needs

customerUnderstanding customers is very important and is the main reasons businesses such as survive despite being in a pull of competitors. To give a good customer care, a business must deliver what they promise. However, a great customer care is first achieved by understanding your customers to know their needs, wants and expectations. To understand a customer, you need to be very attentive to them and be in contact always. The potential rewards of understanding your customers include customer loyalty and recommendations that come out of a word of mouth.

Here are some few ways you can employ to understand your customers better.


Apply intelligent customer engagement

It is very valuable to offer an optimized customer experience to promote revenue and retention. If you get these right, it can be a great source of customer insight. It is very important to understand your customers in real time, as there are many tools that can help you achieve that. Tools such as drift and messenger are very important in creating these engagements. With these channels, you can collect customer insights and use the data to create better customer experiences.


Create robust buyer personas

Many marketers make a critical mistake of using generic demographics such as profession, age and location to create personas for their customers. You can make use of acquisition tab on Google Analytics to have a look on which social media channels and outlets are bringing results. Apply this information to your persona so that you can find out where your customers are and how to reach them.


Use customer analytics

You should generate data from customer analytics. There are many ways you can generate this data be it from clicking on a link through a web page or observing heat maps on a site. You can use behavior tracking tool to analyze how customers are interacting with your website. Tools such as Inspectlet and Google analytics can be very useful in analyzing customer behavior. Yu should use the behavior data you collect to make conclusions on the expectations of your customers.


Plan and Predict

It is very important to create a plan for future customer engagements. Having such a plan puts customer experience teams in the right state and frame of mind to respond to customers during challenging situations. Predictive models can be very important in understanding previous customer behaviors and predicting future patterns. Make use of historical data to create predictive models of what might probably happen in future.

Guide to Demographic Segmentation

segmentationSuppose you own Wellington Tow Truck and want to target customers and prospects around the Wellington area – how do you go about it? There are different ways to target a specific market for your products and services.  Segmentation, in general, is a method of dividing a population based on a certain set of variables. For this particular case, the best way to go about it is through demographic segmentation.

Demographic segmentation refers to a marketing strategy of dividing your market according to race, age, family size, gender, religion, income, ethnicity, and education. The main aim of demographic segmentation is to help marketers understand their market better


Demographic Segmentation Explained

The word demographic is derived from the word demography which refers to the study of population. This form of segmentation helps a business divide its market into several segments which each group having a common variable. A marketer then aims at targeting each group in a bid to enhance performance. With demographic segmentation, an emphasis is placed on understanding the prospective market and taking all the necessary steps to ensure that all the needs of the specific group are catered for.


Why demographic segmentation

marketingDemographic segmentation forms one of the most popular methods of segmentation today. This is because of the specific benefits associated with it. With this form of segmentation, a firm can easily categorize all the needs and wants of the customers on the bases of demographics such as age, gender among others.  Another advantage is that the variables used are easier to obtain and measure. This is in comparison to other methods of segmentation.

However, demographic segmentation comes with some drawbacks. It is not the most prominent method of segmentation and is also not very targeted. Critics cite the method as being one-dimensional. There is the assumption that all prospects belong to a particular group that has the same needs – this is not obviously true.

All in all, demographic segmentation helps a firm in better understanding its customers and satisfying their needs. In our today’s market, segmentation is very important in understanding customers and what they want. All you need is to identify a potential market and divide it into various segments. You then use the data and variables that represent each of these segments to tailor your products and services to be in line with the needs of each segment. Demographic segmentation is the easiest form of segmentation you can carry out.


Guide to Behavioral Segmentation

marketing mixWhen we talk about behavioral segmentation, we are simply talking about the act of grouping customers based specifically on how they relate as consumers when making purchasing decisions. When segmenting customers, marketers look at behaviors such as their level of loyalty, readiness to make a purchase, the frequency of interactions with a brand and many other factors.

The main aim of behavioral segmentation lies in understanding customers on three key things which include;

  •  Their purchasing habits
  •  Their usage habits
  •  Their spending habits including time, money and other resources.


Behavioral segmentation is a marketing strategy that lays emphasis on where prospective customers are shown content. It then aims at targeting advertisements that are based on previously known behaviors that customers have.

The strategy of behavioral segmentation can be particularly very important because if the content delivered to prospecting clients is more personalized, it may lead to making a positive impact that can lead to a lot of conversions.


Making User Profiles

To implement the concept of behavioral segmentation, we must first create what we call user profiles. These are profiles that are constructed on the basis of many factors including; website analytics, cookies, browsing history, search history, social data, login details, IP addresses, App data and much more.

To have all the data collected turned into something useful, it must be compiled with the use of a dedicated software. We then employ the use of marketing automation and customer relationship management to create a working behavioral segmentation program. The use of behavioral segmentation can be particularly effective in enabling a marketer move beyond the normal guessing marketing practices. It aims at targeting personalized marketing messages that are poised to convert better.

Why Behavioral Marketing

MarketingThe main benefits of behavioral marketing lie on relevancy, efficiency, and ROI. When we talk about relevancy, behavioral marketing allows marketers to send only relevant and targeted advertisements to prospects. This process of marketing becomes very efficient with increased conversion rates. Behavioral segmentation continues to stand out when it comes to delivering more ROI as compared to other traditional methods of marketing.

The main goal of segmenting your prospects according to behavior lies in identifying various segments based on behavioral factors. You look at ways of determining how your products and services meet the needs of each group of customers. After that, you can tailor your products and services to meet the needs of your customers. You can equally tailor your marketing initiatives and campaigns to reach a specific segment that is most likely going to make a purchase.



Understanding Psychographics in Marketing

psychographicsThe concept of psychographics came into full use in light with the Cambridge Analytica during the 2016 US presidential election. Some refer it as the dark art of marketing. With psychographics, marketers can change the way they understand and influence decision making. As far as psychographics is concerned, it is the study of consumers based on their activities, opinions, and interests. It puts its focus on understanding the cognitive attributes such as customer emotions, attitudes, and values among other psychological factors.

Marketers, researchers, and advertisers can leverage this approach to create psychological profiles of customers. These profiles help researchers understand consumer motivations and opinions and thus know the kind of messaging tactics to use to drive their messages. In studying consumer habits and coming with profiles, marketers move beyond blanket advertising such as television ads, direct mails, and billboards and achieve a more targeted approach.


Psychographic Profile

A psychographic profile contains information about a person’s hobbies, interests, lifestyle choices and emotional triggers among other data. This information could provide insights on why some people may buy a certain product, vote in a certain way, and support a given course and much more.


How Psychographic information is collected

There are different ways to gather and analyze data that is collected through psychographics. Some of the methods used under this technique include interviews and traditional focus groups, set-top box viewing data, surveys and questionnaires, psycholinguistic dictionaries, website analytics, browsing data, social media likes, tweets and clicks, and third-party analytics. From each data source, researchers can get insights into consumer preferences either indirectly or directly.

There are different ways to group psychological characteristics. The first one is personality traits. Brands, services, and products all have personalities that are created intentionally or without intent. Marketers often create these personalities to match the personality traits that are most attractive to their targets and market.


LifestylesWe all have different lifestyles with all these reflecting different factors including the stages making our lives. Our needs and wants are based on our lifestyle. Segmentation by lifestyle considers where a client is in terms of the lifecycle as well as important things they consider in their life.


Opinions, Interests, Attitudes, and Hobbies

This categorization looks at factors such as opinions on issues including politics, gender, religion and issues on the environment. It can also look at issues to deal with sports, arts, and culture as well as recreational activities. You look at the opinions and interests your market segments hold as well as the activities that they engage in.


Social Status

A social status is a segmentation approach crosses other important aspects such as income strata, stage of life and preferences. There is always a strong psychological component in one’s need to maintain a certain social class or standard. This approach can be a powerful way of segmentation. It can be very fruitful when there is a direct connection between one’s interest and consumption of products and services. Other ways of segmentation include the degree of loyalty, occasions among others. These strategies can be used to develop a business and marketing strategy.





Introduction to Market Segmentation

market segmentationMarket segmentation entails research used to determine how an organization divides its customers into smaller groups or cohorts based on certain characteristics such as age, behavior, income, personality traits among others. These segments are then used to optimize products and enhance advertising to different customers.

Market segmentation is among the most effective tools available for marketers to target a specific group. It eases the marketer’s work to personalize campaigns and put the focus on only what is necessary. Members of these small groups share similar characteristics and have a lot of aspects in common.


Bases of market segmentation

Segmentation is simply dividing groups into smaller groups based on some basis. This basis may range from aspects such as age, gender among others. It can also be based on psychographic factors such as interest, attitude, and values among others.

Gender is among the simplest way of segmentation, yet very important. This is because the interests and wants of male versus female vary greatly. Marketers employ different marketing and communication strategies for both groups. This type of segmentation is particularly important when collecting data on aspects such as clothing, cosmetics, jewelry industry among others.

Another form of segmentation is by age group. Segmentation through this category a unique way for personalization. Another segmentation that matters is by income levels. Income determines the purchasing power of the target group. It also helps marketers determine if a certain product will sell or not. Other forms of segmentation include place, occupation, usage, lifestyle among others.


Types of Market Segmentation

There are four key types of market segmentation and all these vary in terms of the applicability and implementation. They include the following;

Demographic Segmentation

This is one of the simplest forms of segmentation and also the widely used. Most companies employ it to get the right population who are using their products or services. With this segmentation, you basically divide a population-based on variables. Demographic segmentation has its own variables too, such as gender, age, income, family size, religion among others.


Behavioral Segmentation

marketThis type of segmentation helps in dividing a population on the basis of their behavior, decision-making patterns as well as usage. A good example is how young people may have a certain preference of some products over others. Smartphone market employs this use of segmentation.


Psychological segmentation

With psychological segmentation, the emphasis is placed on the lifestyle of people, their interests, activities as well as opinions. Psychological segmentation is very similar to behavioral segmentation. However, it takes into account the psychological aspects of consumer buying. These psychological aspects may finally become a consumer lifestyle.


Geographical Segmentation

This is a type of segmentation that divides people on the basis of geography. Potential customers will always have different needs that are based on their geography and their location. In cold countries, marketers may try this segmentation to evaluate if heating products would be accepted or not. This type of segmentation is the easiest to use, but it is not very much adopted due to advances in the other methods.