Understanding & Segmen/ng Your Customer – Part II GeCng the Right Customer For Your Marke<ng Message
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Know Your Customer Types
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The Resistant Customer Mindset: Hates your company and holds deep resentment for your brand Ø Behavior: – Will spread nega<ve word of mouth wherever possible – Took their experience with your brand personally and is looking for revenge – Will defect to your compe<tor first chance they get Ø Loyalty: Zero Ø Possibility of Defec/on: Extremely High (you can’t save this group) Ø
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The Indifferent Customer Mindset: Sees your company/product/ service as nothing more than a commodity Ø Behavior – Will always try to get lower prices to the point of near zero margin – They will promise volume or future business, but see li"le unique value in your offering – Always willing to walk away from the sale because they have other op<ons available Ø Loyalty: One Ø Possibility for Defec/on: Very High Ø
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The Acceptant Customer Mindset: Expects your customer to provide the maximum of what’s asked and nothing more Ø Behavior: – Doesn’t think of your brand un<l absolutely necessary – Comes to you because you have become a habit or more convenient choice – Maybe aware of other, be"er op<ons, but simply hasn’t made the effort to pursue them Ø Loyalty: Two Ø Possibility for Defec/on: High – Customer expecta<ons can outpace what you provide Ø
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The Preferen<al Customer Mindset: Has grown to like your brand and tends to understand the unique value that you provide Ø Behavior: – Most of us make the mistake of making this customer type the top of our customer pyramid – When given a choice, they will probably con<nue to use your brand – Very aware of industry trends and can surprise by defec<ng if you have not given them benefits or raised the bar on service or innova<on Ø Loyalty: Three Ø Possibility for Defec/on: Somewhat High Ø
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The Evangelist Mindset: The pinnacle of the customer rela<onship and would buy anything you offer Ø Behavior: – They tell everyone they know about your company – Men<ons how sa<sfied they are even in casual conversa<ons – Your brand has become part of their life – Finds personal meaning with your brand – Worth their weight in gold because they do more to grow your business than any ad campaign Ø Loyalty: Four Ø Possibility for Defec/on: None Ø
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The Customer Profile Who is my target customer?
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When we talk about profiling customers, we start with the basics – or what is know as the old way….
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Old Way Standard Demographics Age, Race, Income, Educa<on, Family Size, Employment
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Now this way has given marketers a great deal of informa<on over the decades, it has not improved the marke<ng performance of our ac<vi<es and campaigns
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Why?
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The standard demographics are a very general way of looking at a customer – it gives us insights but not details which we need to drive our marke<ng
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Rs. 200,000+
40+
Master’s Degree
Business Owner
Family of 2
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Middle Eastern
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This is the limita<on of the old way of marke<ng segmenta<on
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New Way – Audience Segmenta/on GeCng to the root of your customer
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When you use a audience segmenta<on method, you are be"er able to break down your customer into clear sets of detail that allow you to target them more effec<vely h"p://emagine-‐group.com
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Is audience segmenta<on just about behaviors?
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When we work with this method, we start from a different point than the tradi<onal demographics
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Where do you think we start in this method?
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Life Roles are the different things that we are that make up our buying decisions.
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When marketers start with life roles, we are be"er able to define our customer because different behaviors fall into the different roles we carry in life.
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When you define someone’s life roles, you are be"er able to define their – behaviors, habits, interests and purchasing decisions
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Understanding Market Segmenta/on Learning How to Break Down Your Customer’s Into Groups
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Market segmenta/on is the process that companies use to divide large markets into small markets that can be reached more efficiently and effec<vely with products and services that match their unique needs h"p://emagine-‐group.com
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Market Segmenta<on
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Market Segmenta<on Divides the market into different geographical units such as na<ons, regions, states, coun<es, or ci<es
Divides buyers into different groups based on social class, lifestyle, or personality traits
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Geographic segmenta/on
Psychographic segmenta/on
Demographic segmenta/on
Behavioral segmenta/on
Divides the market into groups based on variables such as age, gender, family size, income, occupa<on and educa<on
Divides buyers into groups based on their knowledge, aCtudes, uses, or responses to a product
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How Do We Market To These Segments?
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Marke<ng Segmenta<on All
New vs. Returning
4 Key Products
8 Major Markets
16 Visitor Personas
100% of visitors
100% of visitors
1 segment = all
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16 segments = all
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Market Targe<ng Mass
Segmented
Niche
Local/Individual
Undifferen<ated Marke<ng
Differen<ated Marke<ng
Concentrated Marke<ng
MicroMarke<ng
Targets the whole market with one offer Mass marke<ng Focuses on common needs rather than what’s different
Targets several different market segments and designs separate offers for each to achieve higher sales and stronger posi<on
Targets a small share of a large market Limited company resources Knowledge of the market More effec<ve and efficient
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Prac<ce of tailoring products and marke<ng programs to suit the tastes of specific individuals and loca<ons
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Results from Mass Marke<ng Price
Direct Sales
Fill by ad networks
Volume h"p://emagine-‐group.com
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Results from Market Segmenta<on Price
Direct Sales
Audience-‐based selling
New Revenue
Fill by ad networks Volume h"p://emagine-‐group.com
Brand Focused, Socially Ac<ve, Digitally Enabled
Results from Audience Targe<ng Price
Direct Sales
Audience-‐based selling
New Revenue Fill by ad networks
Volume
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Brand Focused, Socially Ac<ve, Digitally Enabled