Customer Segmentation: A Targeted Tool for Companies

Grouping your customers into smaller subsets offers a handful of benefits over managing the aggregate.

One of the main perks of having segmented customer groups, especially because segmentation allows you to hone in on specific customer traits, is that you will be able to take a more group-specific approach. says Erica Olsen, founder of M3 Planning and MyStrategicPlan.com. Without segmenting, you would be addressing your customers as a whole — despite the many differences your customers likely exhibit. In this video, Olsen explains in m ore details why you should aim to group your customers.

Following a customer segmentation, you will ultimately be more knowledge about your customers. Additionally, if you are capable of performing market research on the customer groups you create, you’ll be that much more ahead of the curve. Then, Olsen suggests creating specific business relationship goals for all of your customer subsets.

But that’s not all. For more on customer segmentation, watch the full video featuring Olsen.