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Technologies Review | October 18, 2017

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The Logic Behind Profitable Customer Segments

The Logic Behind Profitable Customer Segments
robynsorenson

The way companies are targeting their customers is changing as advances in technology continue to emerge. Customers are no longer seen as an “individual” rather as potential profitable customer segments.

 

Customer segmentation breaks apart the client/customer base depending on specific traits such as gender; age, shopping routines, etc. This helps each company specifically target a specific demographic.

 

Value Segmentation

 

While customer segmentation helps target a specific customer or group of customers based on personal or collective trains, value segmentation looks at the customer as more of a cash register. Value segmentation is important to companies as it gives preliminary predictions as to how much a customer or group of customers are going to spend. Establishing a solid relationship is essential for companies, especially if they are depending on this relationship to help boost sales. This is exactly why department store personnel are so professional, while still trying to help build revenue for the store/company.

 

Why the Customer is Important

 

Regardless of which method you choose to approach when it comes to marketing your business, it is essential that you understand the importance of each customer. Customers drive businesses and that’s exactly why it’s so important to follow their buying habits and trends. This gives analysts a better idea of how the customer ties in with the business. This in turn helps stores and businesses review their marketing practices in order to target each shopper individually.

 

Popular Customer Segments
Some of the most popular customer segments include teenagers. You will notice that this age group is more inclined to buy brand name clothing, especially shoppers who are still in high school.

 

Another popular group of customers is the tech oriented or “business crowd”. Since technology continues to take us by surprise, there are always innovative tools that this customer base is looking for. The reason they are constantly looking for the next hottest gadgets on the market is simply because this demographic is determined to make their businesses more efficient.

 

Taking a closer look at how your customer segments impact your business can show you what you can do to help improve customer service and boost revenue, so the customer walks away with a smile on their face and the company still makes a profit.