Why You Need To Know Your Customers Better?

Every year companies spend crores of currency trying to advertise their products/services aimlessly, without any guaranteed result. Targeted marketing as a phenomenon has been an uproar only in the recent days, however a lot of companies are sill measuring the upside of understanding the customer and their needs. Therefore to provide a clearer picture of how intelligent customer segmentation helps reduce costs incurred by a company and increases sales, here are a few pointers.
1. Dividing customers into specific segments allows brands to reach them according to the customer’s preference, i.e. when and where they like. For example, a group of people who have similar interest and spend maximum time browsing Facebook should be targeted using that channel. These customers cannot be reached using Twitter or Linkedin.
2. Each campaign designed by a brand is expected to reach and influence a particular segment (age group, lifestyle, interest, etc.) Customer segmentation based on these criteria helps reach the right target group reducing advertising and marketing cost by a considerable amount.
3. Understanding customers and their needs is a complicated and time consuming process with end results of segmenting customers into baskets of smaller groups who have similar interests. However, doing so provides access to highly personal information such as birthdays and anniversaries, personal interests of customers and other milestones in their lives.
4. Customer segmentation also helps in understanding the untapped markets. It provides access to segments where there is scope for penetration using highly targeted marketing strategies. Potential markets become clearer making it easier to compete with other brands from the same domain.
5. This process of extracting and collating information about your customers is called CRM enrichment.
This allows better knowledge about your customers and hence the ability for companies to connect better with their audiences. Adding personal messages or wishing them on special dates, providing them special offers on specific occasions and more.
Among the other benefits of Intelligent Customer Segmentation, it also helps in increasing sales by allowing the following:
1. Up-selling to existing customers based on their needs and areas of interests to increase company profits.
2. Cross selling to existing customers as well as their peers (potential customers) to increase the company’s demand in the minds of the customers.
3. Provide better social customer service by making use of highly personal data, by wishing them on important days of their life or providing them feedback based on the customer’s interest and history of experiences.
4. Dividing customers into separate baskets based on their interests, likes/dislikes, demography or even age. This helps in marketing particular things to only the right audience segment.
5. Following people who show interest towards products/services that your company provides, hence increasing the number of conversions.
Brands and companies who are striving hard to reach their desired customers to either increase their sales, improve their CRM statuses or reduce marketing costs, customer segmentation is the perfect solution. Understanding your customers and their needs, presenting them with unexpected offers and surprises and empathizing with their problems helps provide a personal and emotional touch to the brand.