Many businesses use benefit segmentation to find out which customer from their targeting audience will get most of the benefit from its products.
The basic idea behind the benefit segmentation is to identify the target audience who may become customers because they need that product. Suppose a business knows that how a customer is getting potential benefits from its product. Then, it may hardly lose any customers because the business knows that its product benefits the customer.
Also, if the business continues to meet the needs of targeted customers, then those customers will continue to purchase from it. It is about meeting that specific need a customer wants.
Benefits segmentation can also create strong acquisition campaigns targeted toward a particular group of customers according to the benefits they may receive from that product. Benefits segmentation is also one of the ways of behavioral segmentation. Because it helps businesses to target the customers based on their customer behavior. Behavior segmentation is a part of market segmentation.
Benefit segmentation is the best way to find out what the customers of a business want.
Marketing Segmentation Strategy
While selling products or services, the first step is to know the market, people are targeting. A marketing segmentation strategy divides the market into different segments which are easy to manage.
A customized customer approach may lead to better customer satisfaction and better marketing campaigns. Therefore, a marketing segmentation strategy divides into different bases like behavioral, psychographic, demographic, or geographic.
Marketing segmentation strategy lets a business divide its target marketing into different segments, which can be more manageable. A perfect marketing segmentation strategy is a combination of demographic, geographic, behavioral, and psychographic segments. It leads a business to a greater customer base.
Also, a marketing segmentation strategy helps a business to predict where the products or services are mostly in demand. It allows better customer experience and loyalty. The marketing segmentation strategies involves these five questions:
Who is the customer?
Where is the customer or target market located?
How can a business target its products or services to that market?
What are the services or product in which customers are interested?
Why are certain segments of customers interested and some are not?
These are questions that helped in creating an effective marketing segmentation strategy.
Examples of Benefit Segmentation
There are so many examples of benefit segmentation. All these examples help to understand the benefit segmentation better.
Following are a few examples:-
There are two different kinds of the customer in the mobile industry. One is those who want to have mobile as a status symbol, and others are very social. The mobile manufacturer will divide the market segments into the above categories, status symbol and extra social. Social people will buy those mobiles which are durable, easy to use, technologically advanced, etc. On the other hand, those who are status-conscious will buy highly expensive, new, and stylish.
The cosmetic manufacturer focuses on the different needs of their customers like some want acne-free cream, and some want hair growth oil. Therefore, a cosmetic manufacturer divides the market into different segments based upon the needs of its customers. Here, it is not possible to manufacture one product for every customer because their needs are different. Hence, benefit segmentation will work here.
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