Information overload is a challenge for marketers trying to reach today's consumer
Information overload
Detailed consumer data – whether in the form of digital geo-targeted feedback, social media traffic or objective quantitative research – offers a new set of challenges and opportunities for those in the business of selling. (And by “selling”, we don’t just mean exchanging currency for a product in a retail setting. Selling can also mean delivering services, ideas or influence.)
At the same time, consumers have access to an unprecedented array of information, goods, services and even entertainment essentially within the palms of their hands.
This doesn’t mean that more information poured into Americans’ heads via their mobile devices will automatically translate to more sales.
In order to take advantage of the lucky coincidence of marketing in an era of vast and quick access to consumer attention, eyes and ears, businesses must ask: Who will buy what – and when?
The answer can be found in market segmentation, a proven marketing tactic that can utilize the enormous influx of information and completely customize marketing messages to discrete targets. End the end, market segmentation done right results in the “right fit” for a product or service to those with a need.
The power of digital data management has freed businesses to target not just the mass market, or a specific niche market, but the ultimate market segment: the individual. The ability to track a customer’s purchasing history allows marketers to more effectively communicate directly to a most receptive audience.
Once you’ve identified the specific market segment you want to reach, keep the following four rules of market segmentation in mind.
Rule No. 1: Recognize the complexity of the buyer’s life and avoid adding to it. Communicate how your goods fit in, simplify and help the buyer to accomplish their desires. A product that is easy to buy and easy to use will be far more appealing than one that requires the buyer to put forth lots of effort whether real or perceived.
Rule No. 2: Once you know who your market is and what they want, give it to them. Now you know the prospects’ questions that need answers, so respect their time and answer them, showing the benefits you deliver.
Rule No. 3: Use your data to anticipate future needs. Once initial appropriate segmentation is developed, keeping it sharp and able to “see ahead” is something you can take on yourself. The situations that shape demand are constantly changing. Your segmentation system must consider this fact and collect customer information continuously if you want to stay ahead of competitors. Knowing your market will help you prepare for market shifts – which results in better customer satisfaction and increased customer loyalty.
Rule No. 4: Market segmentation is an ongoing process. Refining your initial segmentation by continually gathering and analyzing data will ensure your ability to be the first to recognize changes in the market.
Knowing your customer well enough to deliver customized marketing messages is the best way to stand out in a sea of other messages aimed at your ideal customer. The end result of effective segmentation is a shift in your marketing emphasis, from how much to how well you spend your resources.
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Founded in 1987, Dorsey & Company Strategic Consultants to Management is a carefully assembled group of more than 50 associates who offer a wide range of marketing expertise to thoughtfully approach every engagement according to its unique competitive and marketing challenges and requirements. The Dorsey & Company approach has consistently yielded favorable results for leading clients in automotive, energy, utility, branded and consumer goods, retail, higher education, telecommunication, government and nonprofit, financial and professional services, health and pharmaceutical, and other industries. Visit here to learn more about Dorsey & Company.
