Small Business Market Segmentation...Explained.

Know your target market because you can't be all things to all people!...  OK so I'm sure that you are aware of the term target market..... yep demographic, geographic and psychographic analysis  are all great ways to determine your target market..... But what happens when our target market is  too broad and generalised in nature....well... we break that target market down into segments....

Segmentation for your small business means dividing your target market into groups of consumers who have unique needs, characteristics and behaviours that will require unique products or marketing mixes.

Segmentation helps truly define a number of customer specifics....focuses your marketing efforts toward your customers needs, wants, fears and dreams to become  more relevant than the business down the road still happy creating marketing around basic demographic data.

 So how do I segment my target market?

Well lets start with four elements that need to be taken into consideration when forming market segments.

Measurable

without knowing how many potential consumers there are….it may not be worth the effort / risk.

If potential customers cannot be measured, you cannot create a measured marketing budget to target the segment...

Accessible 

A potential market segment must have its own marketing channels to effectively reach the target audience…how much marketing noise is in the particular market, if the niche isn't so "nichey" (I'm claiming that as a word)....maybe the segment isn't viable.

Different

Milk is milk….or is it??

A market segment will have a different response to the overall marketing mix (4, 5 or 7 P's which ever you prefer)  When a group of consumers inside that market express demands for product adaptation, it morphs into its own segment. 

Profitable

How sustainable is the segment and is it big enough to make a profit?

Selling lactose free milk would be a great market segment right now....but 25 years ago it was either full cream or skim and a lactose free range wouldn't sell.   

 Lets segment the milk market!

40 years ago milk was bloody milk, boy how times have changed...Cue the video!......

High protein, reduced lactose, no fat, low fat, skim milk, powdered milk, high calcium, extra dollop, A2, smarter white milk, omega 3, vitamin enriched……soy, almond, coconut.....goat and sheep.....

Segmenting takes customer analysis one step further.... it looks at purchase behaviour and the customers individual wants, needs, fears and dreams.... 

 I dream of a Utopian society free of inhuman treatment of animals.....buy ETHICAL MILK

I want my family to reduce chemical ingestion....buy ORGANIC MILK

I'm a 40yo woman that  needs to reduce the risk of osteoporosis... buy HIGH CALCIUM MILK

I'm a mother of 4 kids who needs cheap milk...buy GENERIC MILK

I'm a 25 year old women that fears I'm putting on weight...buy LOW FAT MILK

Most people consume milk.... and  segmenting the target market provides consumers greater choice and the manufacturer more profit. Certain milk costs more than others...but the demand is there for a number of specific varieties of product. Milk is not just milk!!! 

Segmentation allows you to look at your target market and really understand the who, what, when, where, why and how of your customers relationship to your products.... 

By better understanding your customer, you can not only provide more relevant products, but really narrow down your brand message to create more relevant marketing communications that are more genuine and less MASS market orientated. 

Real world...

When I first started introducing the Define marketing business to local owners I segmented potential clients into business types.... I met with hairdressers one week...mechanics the week after, each market segment has different and quite unique needs and marketing challenges.... 

I was able to focus my research efforts on the weekly business segment... better understanding potential clients needs allowed me to effectively communicate how I could help with specific challenges business segments would face......

think about your current target audience... how can you segment your particular list of clients in order to provide more specific and personalised service? Do you have any interesting segments that you have created along the way that you would like to share? Feel free to comment below.

Interested in marketing Segmentation for your small business? Go to www.definedesigndeliver.com.au to see how our service will help your business.

Small Business Touchpoints

A thin business card is like a limp handshake and an unanswered social media comment is like walking into a business and getting completely ignored by the staff.

Sometimes the things described above are the first impression a customer receives from your business, and these days first impressions can come from ANYWHERE... so managing your touchpoints and creating positive first impressions is what this post is all about.      

Touchpoints?

EVERY part of your business that a customer comes into contact with is a touchpoint. Your Answering machine message, brochures, email signature.... your vehicle access, choice of toilet paper and EVERYTHING in between.

If a customer sees your brand or anything about your business it means they are already SEARCHING for a product or service that you may provide.You need to properly manage these customer contacts. You need to make your touchpoints consistent with your brand AND your touchpoints need to be geared towards meeting the needs of your target audience. 

"Customers are looking for confirmation,

 that what you offer

is going to meet their needs." 

Because every business is different, touchpoint selection changes as well. An online business relies heavily on providing easy site navigation and usability, a retail store utilises in-store displays and customer service; each have there own unique touchpoint requirements. If your customer reaches a touchpoint and thinks that your business may not meet their needs they will simply walk away and purchase somewhere else.... if your touchpoints lack impact customers have plenty of other options available to them, they won't even bother to walk through your door even if you do have products that meet their needs.

Real World...

A quote from a plumber can be hand written or it can be an opportunity to display their logo and relevant promotions to the customer... and although only a small aspect of a business, with proper analysis any touchpoint can have more impact.

EG:  Your plumber comes around to do a quote on a bathroom renovation. When you receive the emailed quote a clickable promotion for kitchen renovation plumbing is found  at the bottom of the email with a few short testamonials. 

This indicates that...

• the plumber does regular renovation work
• combining bathroom and kitchen plumbing may lead to a greater discount
• the plumber has experience
• positive testimonials indicate the plumber does a good job   

The plumber also benefits from...

• greater awareness of additional services
• direct marketing to generate future sales
• click through onto the business website
• increased customer engagement

Do your emails contain links to your current promotions?  If your prospective customer is already engaged make the most of it!

A word of warning... 

Badly executed touchpoints will turn customers away. Following up a positive customer service contact with 10 automated promotional emails will undo your customer service efforts and lead to instant distrust. A hand written quote may seem unprofessional compared to a printed quote on company stationery... on the flipside... some people may perceive a hand written quote as more genuine and personal ...it all comes down to your customers perception!

Now is the time to sit down and write a list of ALL the ways YOUR customers come into contact with your brand. Analyse each touchpoint and note how a customer would perceive your brand via that point?...are your touchpoints as good as they could be? If your touchpoints don't match up to your brand its time to get to work, prioritise the list and make that first impression count. 

 What innovative ways have you used to create memorable touchpoints? 

What are your thoughts on Touchpoints for your small business? 

Feel free to comment below.     

  




       

Does Social media always work for small business?

Without a doubt social media is the most cost effective way to establish ongoing contact with customers. It allows new and existing customers to have direct interaction with your brand and enables you to provide something them with something of VALUE, even when your doors are closed. But what if social media was actually harming your business...?!

Here are a few reasons why you really need to look at the viability of social media for your small business...

1. Social media may not be a good fit for your business.

Every marketing guru in the world just pulled out the daggers...but please hear me out.

Social media works extremely well for businesses that are SOCIAL in nature... florist, hairdressers and cafes are a perfect match for sites like Facebook, Instagram and Pintrest, kind of makes sense, customers meet there...they are social places, there is a never ending supply of what i call immediate content...that is..... general content that most demographics can relate and engage with.....like this pork belly photo (YUM).

But a local accounting firm that specialises in business taxation....should be spending more time creating  engaging and informative email updates that better meet the needs of their target audience; busy business owners. Managing social media accounts may be a waste of company resources (although Linkedin would definately fit in this case).

Your target audience should be at the

 centre 

of what social media you choose

 for your business. 

Real world....
Define Design Deliver is not on twitter because small business owners who i talk to are simply not on twitter...most small businesses in the northern rivers and (as a guess) most of regional Australia DON'T HAVE TWITTER...so why spend time managing content that won't be seen by my target audience? The hour spent managing my content each week is better spent calling a past client to touch base or take the time to introduce myself to a new business...i hope that all makes sense now...(you can put your daggers away).


*** NOTE ***
Since this post we have created a twitter account for the Define brand...it is going quite well, although it must be said that our overall business strategy has changed which created a need for a global business voice. I.e. Twitter   

 You can find us here...  @DefineLismore 

2. Social media takes time... and time equals money

Let’s not kid ourselves, social media is not an easy task. The amount of time and effort required for social media is definately part of the reason more than 70% of Facebook business accounts are inactive.

Quality content is what you should always strive for; quick updates are okay, but they need to be supported by structured content. Ask yourself, what are you able to achieve without a clear social media strategy and well planned updates? 

ALL your posts must be consistent to your brand message, focused on your target audience and they must provide VALUE. Simply broadcasting a message is not enough anymore. Your social media needs integration into your overall marketing plan so that ALL your communications complement each other and meet the objectives of the business. If your running a newspaper promotion....you should utilise social  media to boost engagement with the promotion, regularly post links to the promotion page on your website and maintain a consistent message delivery.

3.  Social media needs consistency

Consistent posts maintain attention, but if your business gets busy, social media is usually the first thing to go. Why should customers follow you if you don’t regularly update and the value you aim to create is sporadic? Without consistency your social media account could actually do more harm than good.  

The other big no-no is that small business really needs to reconsider using social media if they regularly fail to acknowledge follower comments in a timely manner. Not responding to a Facebook message or ANY social media comment, share or mention is the same as if a customer walks into your store and you completely ignore them! Social media requires planning and foresight, but more importantly it requires you to understand that it is an important communication link that needs to be maintained. Getting back to a customer enquiry needs to happen within 24 hours; feedback should always be acknowledged and complaints should always be addressed ASAP.

So... 

Social media is here to stay, but it really needs to be viewed as PART of your overall marketing strategy (both online and offline)...Social media is not the be-all-and-end-all. Social media can play a positive role in your communications strategy and it is certainly great for maintaining customer relationships, but time, planning and management are required in order to make it truly effective. Small business really needs to develop the marketing fundamentals of social media in order provide customer engagement and lead generation. If you can’t commit the time and energy into your social media maybe it’s time to get a professional in to manage your social media accounts ...or look at dropping your less productive or wayward accounts in order to increase the quality of your content overall.