Market Segmentation Research
What is it? Market Segmentation Research is the process of dividing a broad consumer or business market into sub-groups of consumers based on shared characteristics such as demographics, behaviors, needs, or psychographics. The goal is to identify and understand distinct customer segments so that products, services, or marketing efforts can be tailored to each group more effectively.
Why is this so powerful? What will segmentation do for me? The biggest challenge in marketing is targeted reach. Pinpointing and reaching the target prospect with exactly the message they need, when they need it. The second biggest challenge is making that message effective. Segment tailored messaging will enable you to do that but can only be done if you already have a segmentation map to guide your content and messaging. Market segmentation reduces the risk of unsuccessful or ineffective marketing campaigns.
When should you use it?
- Before launching a new product or service – to understand which customer segments to target
- To improve marketing strategy – when generic campaigns are underperforming
- To identify underserved markets – uncovering opportunities by finding unmet needs
- During product repositioning – to align with more profitable or strategic customer segments
- To enhance personalization – improving user engagement or conversion through tailored messaging
What problems will it solve for you?
- Low ROI on campaigns – allows for more precise targeting, increasing efficiency
- Lack of focus – it prevents businesses from wasting resources targeting "everyone"
- Ineffective marketing – helps avoid generic messaging that doesn’t resonate
- Misaligned product-market fit – ensures that offerings meet the specific needs of each segment
- Customer churn or dissatisfaction – by better aligning offerings with customer expectations
- Develops understanding on who your customers are, why they do business with you, and how to keep them satisfied and delighted
- Informs what experiences deliver that maximize revenue and reinforce your brand image
For more information or to receive a demo and briefing, please contact us at insights@svrg.net
