From the course: Marketing: Customer Segmentation

Common ways to segment customers

From the course: Marketing: Customer Segmentation

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Common ways to segment customers

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- [Instructor] We are all customers and consumers and watching this video, you are consuming it and you have some things in common with other people who complete online training and education programs. One of the jobs marketers do is gather data on customers and target markets so they can better refine their positioning and messaging. There's a common concept in marketing called the 80/20 rule. Most businesses find that about 80% of revenues come from approximately 20% of the people who buy from them. I recently did a project where we found that 29% of a firm's customers brought in 79% of sales in one category. Knowing this information, the company could then focus on how to gain more business from those 29% of their customers who obviously trust them. And then also look for other ways to get the other 71% of their low volume buyers to consume more. There are seven key ways to segment your customers and targets. We'll cover each in this course. They include; geographic, demographic, culture, behaviors, usage rates, the benefits sought approach and psychographics. In this course, I'll make numerous references to data and resources available on people in markets within the United States. However, the principles for doing customer segmentation are the same around the globe. Most governments provide very solid demographic data and there are market research firms that serve just about every industry in each developed market. To get the most out of this course, it's important to understand the basics of marketing since they're the cornerstones for building and executing a solid plan to segment your customers. Understanding the four Ps of marketing. Product, price, place, and promotion are also important to get the most out of the course. If you haven't done so already, I suggest you watch the other marketing fundamentals courses here on LinkedIn Learning. The investment will be well worth your time.

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