Why segmentation of customers?

In the present-day market, customer segmentation has become an essential part of any successful business. The days when one-size-fits-all are long over.

For example, today we buy pink things for girls and blue for boys. Especially in today’s tough economic competition, it is
essential to be accurate and effective in customer services. There are many ways to divide customers into unique groups. Methods range from simple to complex, but all these methods should have the same goal that is how the company can create products or services that would satisfy the customer’s need.
A few things one has to keep in mind to make a good segmentation:

  • Groups should be made distinct and identifiable.
  • Groups should be large enough that they are worth marketing or selling.
  • Groups should be reachable
  • Groups need to be profitable or valuable
  • Groups should be integrated with a larger marketing plan and make sense in the context of strategic direction.