Yes, we tried to come up with a catchy title. “The Benefits of Benefit Segmentation”. When firms appeal to segments based on consumer desires, the consumers benefit. In return, companies benefit by gaining better loyalty.
For related posts, check these out:
- Understanding the US Latin X Marketplace
- Super Marketing for Healthier Eating
- Shopping for Sustainable Clothing
- Reasons to Simplify Product Positioning
Achieving the Benefits of Benefit Segmentation
As implied by the name, benefit segmentation splits the market. Based on key customer benefits and needs. Therefore, benefit segmentation offers a very consumer-centric approach. Because it identifies the core product needs of consumers.
Then, these segments can be profiled and described by adding demographic information and some behavioral variables. Such as brand attitudes and level of consumption. This means, we can develop a deeper understanding of the consumers within that segment.
Furthermore, this approach presents advantages in product positioning. As we know, the core benefit/need sought from the segments themselves, it becomes quite clear as to how to effectively position the product for success in the marketplace.
Marketing and Benefit Segmentation
Companies use benefit segmentation to learn which members of their target audiences will benefit most from using the companies’ products. This helps identify target audience members most likely to convert. Why? Since they need your product.
One positive by-product involves reducing customer churn. If you know a customer well, you will deliver the exact value sought. Then, if your product continually meets the specific needs of different customers, they will likely continue purchasing from your firm.
Within its discussion. Alexa provides several examples. Below, we focus on one — Crest:
Crest markets different toothpastes based on the results they deliver. Thus, it offers toothpaste for teeth whitening. And another for sensitive teeth. In the image below, you see advertising tailored to customers looking for whiter teeth.