SEGMENT CUSTOMER
1, What is a “Customer Segment”?
2, Benefits of Segmentation
3, Segment Process
4, How to exploit a niche market
WH Y WE
NEED T O
SEGM ENT
OUR
CUST OM ER
?
PREPARED BY NHATLE
QTSC, 25th July, 2008
I ndex
1, What is a “Cust omer Segment ”?
2, Benefit s of Segment at ion
3, Segment Pr ocess
4, How t o exploit a niche mar ket
1, What is a “Cust omer
Segment ” ?
A customer segment r epr esents a gr oup of
customer s based on their common
char acter istics. I t may be cr eated based
on the follow ing customer char acter istics
(or attr ibutes):
Regist rat ion informat ion
Demogr aphic informat ion
Address informat ion
Cult ural infor mat ion
Pur chase hist or y
Account informat ion (for Business t o Business
st or es only)
Ot her cust omer infor mat ion such as int er est s
2, Benefit s of Segment at ion
Segmenting your customer s into gr oups
accor ding to their needs has a number of
advantages. I t can help you to:
ident ify your most and least profit able cust omer s
focus your mar ket ing on t he cust omer s who will
be most likely t o buy your pr oduct s or ser vices
avoid t he mar ket s which will not be pr ofit able
for you
build loyal relat ionships wit h cust omer s by
developing and offer ing t hem t he pr oduct s and
ser vices t hey want
impr ove cust omer ser vice
get ahead of t he compet it ion in specific par t s of
t he mar ket
2, Benefit s of Segment at ion
use your resour ces wisely
ident ify new pr oduct s
impr ove pr oduct s t o meet cust omer needs
incr ease pr ofit pot ent ial by keeping cost s
down, and in some ar eas enabling you t o
char ge a higher pr ice for your pr oduct s and
ser vices
gr oup your cust omer s by fact or s such as
geographical locat ion, size and t ype of
or ganisat ion, t ype and lifest yle of consumer s,
at t it udes and behaviour
3, Segment at ion Pr ocess
4, H ow t o exploit a niche
segment ?
H ow to find a niche mar ket
I t is a good idea t o look mor e closely at your
mar ket s, in order t o:
ident ify whet her t her e ar e any mar ket
segment s t hat ar e not well cover ed at t he
moment
t hink of ways in which you can offer pr oduct s
or ser vices t o fit t he individual needs of t hese
segment s
4, H ow t o exploit a niche
segment ?
H ow to exploit a niche mar k et
To maximise sales t o any niche mar kets you might
have ident ified you should:
do your r esear ch t o find out if such a niche exist s and
how it could best be ser ved
t r y t o find out as much as you can and develop
exper t ise in the niche mar ket
Remember t hat going int o niche mar ket s can be a r isky
business:
make a business case befor e you tr y to enter a niche
mar ket
be on your guar d for r eact ion fr om compet it or s alr eady
oper at ing in t he niche
monit or t he mar ket and be pr epar ed t o move to anot her
niche
The end
