Discussing the Importance of Market Segmentation for your Online Business
When starting your own business, decorating the catalog with amazing, functional products must not be the ultimate motto. Selling them to the right people must be one of the most important decisions to make. Because the better you filter your customers, the better will be your business’ conversion rates. The chances of retaining paid users will be higher for you. And hence, as an online seller, you must understand the chief role that customer segmentation plays in today’s world of commerce.
Although, before we move forth, let us ask you a question? What is market segmentation and how can it benefit your e-business?
Whether using a simple website builder to create your own online shop or launching your product for the masses to purchase, targeting the right audience plays a huge role in making sure that the strategized promotional campaigns show effect. The process of filtering your target audience into subgroups with similarities based on age, gender, location, user behavior, etc. is called demographic segmentation for a venture. Mentioned below are a few ways of how effective market segmentation can help you build a fortified eCommerce brand. Keep reading to know more!
- Better Conversion
Marketing without knowing your target audience is like hitting the pinata with a blindfold on your eyes. It could be a hit or a miss. Once you start putting a filter – it could be behavioral segmentation or on the basis of gender – it implies that you have started to understand your own product a bit better, and hence, you know what kind of people must be interested in buying it.
Here’s an example of market segmentation for your understanding – let’s say that you sell designer crockery with an exorbitant price tag. You must segment your audience on the basis of gender, annual income, and geographies to enable a better conversion rate as compared to what you were getting during blindfolded advertising campaigns.
Admittedly, it has become easier to create a filter for your target audience, with an increasing amount of sellers socially selling on platforms like Facebook, Instagram, Whatsapp, etc.
- Segmenting for Customer Retention
The user experience designed by you must be as per who you’re selling to. From your eCommerce store to your marketing campaigns on various digital mediums, your brand story should reflect the audience you’re targeting. Because that is the only way your customers/audience will relate to your brand. If you have done your market segmentation in a correct manner, you’ll be able to smoothen the user experience, and hence, your customer retention rate will be inclined to stay on the top.
- Business Expansion
Once you have your target market set, your business can expand beyond geographical limits. After all, selling to an audience spanning 27,000+ pin codes PAN India is definitely better than selling to an audience in a small market within a single city. And perhaps, this why there are different types of segmentation for an assortment of businesses – so that eCommerce sellers like you can grow their business to greater heights. Therefore, you must finetune your target audience enough to look at new geographies from a trading point of view.
- Product Improvisation
From using the best online store builder to coming up with the most creative marketing strategies to attract customers, you must make sure that every step comes after you have already segmented your target market. Because the better, more refined filters you create to handpick your audience, the more improved product you will be able to create for your customers. One that can address the pain-points of the people you’re trying to sell to. This is why market segmentation is important – because it supports the overall framework of your business, which consequently helps to build a brand that is valued and trusted.
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