Insights

Questions must be answered before market segmentation

July 12, 2016

Do you find that you are not going according to the marketing strategy that you have created?

This is not strange for many small businesses, especially in the first years of business growth. The first years determine the company’s identity, its market and competitors. Moreover, it determines the tactics which must be used and those that must be abandoned.

Why should you do a market search before segmentation?

The first step for small businesses is to develop their own marketing strategy and to create segments in the market to determine the target group, which makes the potential customers of the company in general. This is based on the common interests between this class and common needs, plus demographics, geography, and many other factors.

What are the benefits of segmentation?

The market segmentation is based mainly on providing the right offer to the right person at the right time. This leads to increase sales and therefore more income for the company.



For example, one brand in the business of selling clothes online is sending the same offers to their mailing list to more than 80,000 people, and after a while they segment the market according to gender and the interests of customers. Then they launch a campaign after the classification of e-mails by gender and interests, which led to increase the proportion of interest in the offer they made and therefore they have noticed a significant increase in the percentage of sales after the campaign, unlike the old-fashioned way.

The results were as follows:

42 percent increase in the rates of appearing.

123 percent increase in purchase rate.

141 percent increase in campaign’s revenue.


These results stimulate employers to develop products and services that meet the diverse needs of the market. Thus, they create more ideas in these new segments in the market.



Finally, the market which is divided according to customers’ interests allows you to increase the value-added offerings, and allows you to increase the company’s revenue.

Comments are closed.