In today’s competitive landscape, companies are vying for their customers’ loyalty and share of wallet. One way to ensure that your company remains competitive and profitable is by knowing exactly what type of customers are attracted to the different types of products you offer. By deeply understanding your market, your company will be able to maximize its efforts and target its ideal customers. One way your company can achieve a greater understanding of its customers and markets is through segmentation research.
What is segmentation research?
Segmentation research is a quantitative approach that is used to identify unique segments within a population in order to develop new marketing tactics and strategies to appeal to those individual segments.
How can segmentation research help my company?
Segmentation research is a great way to more deeply understand how people differ in their needs, attitudes and motivations and uncover the nuances of your customers’ buying habits. Identifying different segments of customers will help your company develop new products or tailor current offerings so that they appeal to different types of people. It will also help your company’s marketers spend their time, energy and resources more wisely with targeted marketing and communication tactics.
How does segmentation research work?
When you partner with Advantage Research to conduct a segmentation study, we ask a variety of attitudinal and demographic questions of your target customers. Then we conduct factor and cluster analyses, in which we take the data and "shrink" it into a smaller data set to find hidden patterns, how they overlap and what characteristics are found in the patterns. The result of these analyses will be clear segments of customers defined by their attitudes, beliefs and actions related to your business.
As an optional additional step, qualitative work such as in-depth interviews can also add color and dimension to survey findings, giving them the face and voice of a real person.
How will my company benefit from using segmentation research?
Companies can use findings from segmentation research to:
Develop targeted marketing messages and advertising for niche groups of customers
Attract the best types of customers because they understand what their desires are
Differentiate their company from others
Create better products that appeal to their customers
If you think a segmentation study could help advance your company’s goals and objectives, Advantage Research can help you. Contact us today to start the conversation!