Target Audience Segmentation

Four Smart Customer Segmentation Strategies To Determine Your Target Audience

Target Audience Segmentation

You have come up with a great business idea – you are almost ready to roll-out. But before you go any further, you need to determine your target audience. You should also decide who will be the center piece of your different marketing moves and activities?

Simply put, if you are selling pencil boxes, your target market should be school students. If your marketing message and retail outlets don’t follow this logic, it would be hard to move your inventory. When you think about it, this is an obvious logic.

On the other hand, if you target the mass market with no priorities among audience, it will not largely appeal to anyone. You will also fail to appeal to customer’s different needs and expectations. This will prevent you from successfully planning and executing an effective marketing communication strategy.

When companies don’t invest on identifying their target markets, they end-up failing to appeal to the right audience. This in-turn leads to largely disappointing sales revenues.

What Makes a Target Audience?

So, what is the idea behind target audience? Does a target audience really exist or it is just an abstractly made-up concept?

This is an important question that requires due demonstration.

While introducing a product or service in the market, your first task should be to identify your most profitable market segment. This will usually be a small segment within the larger audience. This key segment is likely to buy your products and maintain a successful long-term business relationship.

In this space, your target market could be essentially described by the image given below.

 Customer segmentation strategies

Considering the entire market place, your available market space is a small subsection. In this available marketing section, your target market is a further smaller segment.

It exists as a smaller segment of your total available market place.

Practical Benefits of Discovering Your Target Audience

By discovering the target audience segmentation, you can start giving a better direction to your entire marketing operations. You can also leverage successful factors behind each business operation.

It will give you specific direction in the following aspects-

  • Craft specific massages
  • Focus on potential
  • Reaching out to the right customers

If you are selling a women’s product, then you have to limit your market to female buyers. Expanding your market to include the male buyers will cost you valuable marketing dollars and time. Besides, this may take you away from your target audience.

So, it has a direct role in determining the success of your business.

In this article we are going to tell you about discovering and leveraging your target market. We will be mainly using proper segmentation and CRM customer segmentation to help determine your target market.

1) Identify and Manage Your Marketing Opportunities

A great starting point to identify your target market is to understand what purpose your product/service solves. Which set of people will get benefits from your product or service?

For example – if you are selling a particular baby food with added calcium and iron, it benefits new parents, who want their baby to eat more calcium and iron for their health. Your product is for serving that market segment only. So you have to create content and build up marketing strategy that suits that particular market segment.

A complete marketing management system will help you determine the CPA (cost per acquisition) and ROI of your target market.

This will help you choose the right audience segment and customer preferences based on audience interests.

For example, let’s take the case of baby food. As you are trying to reach women who are mothers, you might want to choose social media channels used by females such as Instagram, Snapchat etc. This will be a better option than other social channels such as LinkedIn or even AdWords and older marketing channels.
This brings you closer to your target market.

2) Check and Consolidate Your Existing Customer Base

Who are your current consumers and why are they purchasing from you? Is there a mutual characteristic or interest? Is there something that you can do to improve their experience?

The customer segmentation lets you determine and prioritize between different customer requirements. You can also accurately analyze and filter your customer database.

You are likely to have a pile of customer data that includes purchase details, buying history, contact details, personal details and many other necessary things. Apart from these essentials, there are some variegated unnecessary details also.

CRM segmentation can take significant data from customer service through sales and marketing; afterward deliver it all the way to development and key execs.

The CRM software will help segregate and drill down on your accurate customer database. Its strategic sales dashboard will show you every essential aspect of your business to form an integrated report on your current customers.

customer segmentation techniques

3) Create Geographical and Age group Segmentation

You can segment market based on any number of parameters. This can include age group or generation of the buyers, demographics, or geographical location.

In this, target market customer segments should be a big enough thing to meet the financial requirements of a company.

For example – if you want to launch an educational software to help people to increase their mathematical reasoning, then you should segregate your target market on the basis of age group.

According to the Direct Marketing Association Report, segmented and targeted emails generate 58% of all revenues.

4) Figure out your sales Leads from all Leads

As we already discussed, having to choose the right customer segment will increase your ROI.

Even the successful business organizations struggle to find lead to sale conversion ratio of more than 5%. This requires you to identify your most opportunistic prospects aka sales leads. These are the prospects with an actual requirement for your product and necessary budget to make the purchase.

At this stage, your niche should begin to take shape as your present database. You can get necessary prospect details and create filters according to this classification.

With the help of those analytics you can figure out who is going to be your future customer. You can make a perfect sales forecast and curve your sales strategy according to the prediction.

CRM helps you to form predictive models that determine lucrative customers based on Customer Lifetime Value (CLV). This is a vital implication that calculates the net value of a prospective relationship with your customer.

Customer Lifetime Value

Using CRM tool, you can make it certain, to which parts of your market have the maximum CLV. Besides, you can also find out customers with a low CLV and utilize CRM data to find ways to develop their lifetime value.

This analysis will help you generate a really productive social media campaign. You can upload significant statistics of satisfied customers or their testimonials to enlarge your target market and attract more customers


Kapture CRM provides you with valuable insights into customer behavior by tracking communications, collecting sales data and evaluating trends among specific market segments. Accurate analysis and easy accessibility of data helps to generate real life predictions and identifies the exact market for a product or service.

For startup companies, this development can take time for examination and tweaking but it provides treasured insight into the requirements and motivations of prospective customers.

Contact Kapture CRM to find out the right business strategy by treating your market.


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