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How to Segment your Market

Updated: May 10, 2020



The benefits of having clear target audiences are vast and varied. By learning about who your customers are and why they are engaging with your business, it will help you to capitalise on each segment's specific needs.


The more information you learn about your potential customers, the ways you can tailor your approach increase. You can demonstrate how your business can help them on a personalised level, benefiting both your store and your customers simultaneously.

 

The process of segmenting your market begins by first gathering as much information as you can about the consumers who are likely to engage with your product. We recommend that this is best done by first looking through your industry's and competitors' reports.


Once this is done, we recommend that you segment your potential consumers into 5 main categories:


Geographic - where do your consumers live?


Demographic - how old are they, what gender are they, what is their income, what is their occupation?


Psychographic - what is their lifestyle like, what is their personality, what are their motives and attitudes? We call this AIOs (activities, interests, opinions).


Sociocultural - what social class are they in, what are their cultural values?


Behavioural - what is their degree of brand loyalty, what are their motivations, how frequent is their usage?


One you have your market segmented, we recommend you build customer profiles for each of your segments. These imaginary ideal consumers will represent their broader target market - allowing you to adjust your marketing materials to each segment accordingly.


Effectively marketing to each segment will be discussed in a later post, but for now, gather as much information as possible, as all data will be beneficial to you in the long run.


Good Luck,

The Easy eCommerce Team


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