Market segmentation is part of any successful sales strategy. It will drastically increase your bottom line if implemented correctly. First, let’s talk about what market segmentation is, and then we’ll go over the different ways it can improve your sales strategy.

What Is Market Segmentation?

Many small business owners make the mistake of casting a wide net. They want to get as many customers as possible, so it initially makes sense to them that going after more people will bring more business.

But, the opposite is true. Even a large corporation with many stores (such as Walmart) uses market segmentation to create all their marketing programs, because going after a narrower audience works better. Therefore, market segmentation is going after a smaller portion of your audience, even the “audience of one”.

What Are Different Types of Segmentation?

There are many types of segmentation and more than what will be listed here. Essentially, you can segment your audience in many ways, then market to each individual segment in different marketing campaigns.

Ensure Your Segment Is Identifiable

You should be able to describe the segment in minute detail. The more information you have about the segment, the better. What are their desires? How much money do they make? How much money can they spend? What type of thing makes them want to buy? What are their fears and pain points?

Ask Whether You Can Reach That Audience

Is there a method of communication that you can use to get to the segment you’ve chosen? Do they use email, mobile phones, computers, telephones and so forth? How will you get your message to them?

Know If the Audience Is Large Enough

In each industry, there is a certain conversion rate you’ll want to drive toward. But, you need to know if the segment you’ve chosen to focus on has large enough numbers to make your financial goals a reality. No sales strategy will work if there aren’t enough people to buy.

Understand the Unique Needs of the Segment

The more you can understand the needs and desires of each segment, the more you’ll succeed in your marketing efforts. For example, are you trying to market to professionals who have MBAs? If so, what is unique about the MBAs you want to target?

You Can Also Segment by Obvious Sectors

Geographic, demographics, moral attitudes, and values are all good segments to start with when you set up your marketing campaigns. If you can match your values to the largest demographic in these cases, you can create a winning campaign.

Once you determine the segment you want to target, you need ways to get to them. A good way to do that is to create a freebie to give away to the sector that you want to target in your sales strategy. You can create the freebie yourself or you can hire someone to do it for you.

A good freebie should not be something you have to create fresh for each new potential customer, but instead a very targeted piece that you only create once for that audience and deliver inexpensively.

Segmentation as a Sales Strategy
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