customer segments

market segmentation

a core marketing strategy that involves dividing a broad target market into smaller, more manageable groups based on shared characteristics. Segmentation allows your agency to create targeted campaigns that resonate with specific client needs, improving efficiency and ROI. The section suggests three primary ways to segment: by industry, business size, and marketing needs, with examples to illustrate actionable segments.

Segment	Industry	Business Size	Marketing Need	Key Channels	Budget Range
Local Coffee Shops	Local Services	Solopreneurs/SMEs	Social Media Campaigns	"Instagram, Facebook"	"$500–$2,000/month"
SaaS Startups	Tech Startups	SMEs	SEO & Content Marketing	"LinkedIn, Google"	"$2,000–$10,000/month"
	consumer packaged goods (CPG)	this industry produces and distributes everyday products like food, beverages, personal care items, and household goods, typically packaged for retail sale and frequent consumer use.

target market / target audience

Customer segments targeted by different types of businesses include mass markets, niche markets, segmented markets, diversified markets, and multisided markets.

mass market: A mass market is a large group of customers with very similar needs and problems. You may have heard of the phrase "It's gone mass market," which means a product or a service is being purchased by an enormous proportion customers all looking for the same thing. Computers, soap cars, insurance, and health care are examples of mass market products. Coke and Pepsi are mass market products because the target a wide range of customer groups, from youths to families.

(in this case when your website solution is "turn-key", then it would make sense to list prices. but we don't do the same thing for every client.)

niche market: A niche market is a small market segment consisting of customers with specific needs and requirements. The CVP itailored to meet these particular needs.

segmented market: A segmented market is divided into groups according to customers' different needs and problems. For example, a bank might provide ditterent services to its wealthier clients than to people with an average income, or offer difterent products for small versus large businesses. Seamenting customers is a good way of generating more business.

diversified market: A diversified market offers a variety of services to serve two or more customer segments with different needs and problems that bear no relationship to each other. Amazon is a good example of an organization that diversified from its retail business-selling books and other tangible products-to sell cloud computing services, online storage space, and on-demand server usage. In short, Amazon adapted its CVP to cater to a whole new wave of customers, such as web companies, that would buy these computing services.

Multisided markets: Multisided markets are markets with two or more customer segments that are linked but are independent of each other. For example, a tree newspaper caters to readers by providing its commuters with newsworthy content. The newspaper also needs to prove to advertisers that it has a large readership in order to get the revenue to produce and distribute the free publication. The newspaper is dependent on both of these two distinct customer segments in order to be successful. Matching the right CVP to targeted customer segments is essential to the development of a scalable business model.

Understanding Your Current Landscape

The key is to identify common pain points and value propositions across your current and desired client base.

Since you're bootstrapping with client deals for web development, your immediate focus for marketing should be on securing more of these, while strategically positioning for future growth into your broader service offerings.

You offer:

• Web Development (your current revenue driver)
• Print Design
• UX Design
• Graphic Design

Your current clients are very diverse:

• Sports
• Jeweler
• Furniture
• Auto
• Law Firm
• Doctor
• Dentist
• Nonprofits

This broad range suggests you've been taking opportunities as they come, which is smart for bootstrapping. Now, let's get more strategic.

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• Age
• Shopping Habits
• Gender
• Biography
• Geographic Locations
• Income
• Psychographics
• Marital Status
• occupation
• top priorities (convenience, price conscious, coupons & deals, picky?)

1. people make decisions based on emotions rather than logic. Therefore, it is crucial to identify and appeal to the emotional needs and desires of potential customers
2. while people initially make decisions based on emotions, they often seek to justify those decisions with factual information. The example provided illustrates how a person may be attracted to a sports car due to the emotional appeal, but ultimately decides to purchase it once they can rationalize the decision by considering technical details like the engine power, safety features, and maintenance. This suggests that it is important to provide both emotional and rational arguments in sales and marketing efforts to effectively persuade potential customers.
3. people are inherently egocentric, meaning they view the world in relation to themselves and their own interests. When doing sales, it is important to address the unspoken question of "What's in it for me?" from the reader's perspective. Additionally, on a deeper level, the question may revolve around how the product or offer contributes to the reader's sense of personal worth and significance. By understanding and addressing these self-centered motivations, copywriters can effectively engage and persuade their audience.
4. people seek value when considering a purchase. Value is not a static concept, but rather relative to various factors such as the product or service being offered, competitors' pricing, the prospect's previous spending habits, the prospect's level of desire for the product, and the perceived difference between your offer and others in the market. To effectively sell, it is crucial to demonstrate a value proposition that appears equal to or greater than the asking price. The higher the perceived value relative to the price, the greater the likelihood of a successful sale.
5. The fifth tip highlights that people naturally think in terms of other people rather than abstract concepts. The human brain is primarily wired for social interactions rather than functioning like a computer or calculator. Drawing upon this understanding, it is recommended to incorporate human elements into your copywriting, such as using names, personal pronouns, quotes, testimonials, stories, and photos of satisfied customers. By making the content relatable and personal, it becomes easier for the audience to understand and connect with, leading to increased engagement and persuasion.
6. The sixth tip emphasizes that it is impossible to force people to do anything. While you can use various persuasive tactics like urging, pushing, and enticing, ultimately, people will do what they want to do. As a marketer or salesperson, your role is to demonstrate how your offering meets the needs of your prospects, aligning with their desires and motivations.
7. people actually love to buy and discover new products and experiences. However, what people dislike is being cheated or tricked. To improve the marketing process, it can be beneficial to shift the analogy away from manipulative tactics and instead focus on providing genuine value and creating positive buying experiences for customers.
8. The eighth tip highlights that people are naturally suspicious and tend to be moderately skeptical of any offer. To overcome this skepticism, it is important to back up claims with evidence such as testimonials, survey results, authoritative endorsements, test results, and scientific data.
9. states that people are always searching for something, whether it's love, wealth, glory, comfort, or safety. Writing effective copy involves demonstrating how a particular product, service, or cause fulfills one or more of these needs.
10. explains that people choose to buy directly from a source due to convenience and exclusivity. If the desired items are readily available in nearby stores, customers are more likely to purchase from there. Therefore, emphasizing the convenience and exclusivity of the product or service can help encourage direct sales.
11. emphasizes that people prefer to see, hear, touch, taste, or smell a product before making a purchase. While some items like books and CDs can be easily sold online due to their tangible and familiar nature, other products like clothing or food may require a satisfactory buying experience to overcome doubts about quality. Considering the sensory experience of buying in a physical store can help improve the sales message.
12. states that most people tend to follow the crowd and seek guidance from others, especially when they are uncertain. Testimonials and case histories are influential in shaping people's decisions and actions. Understanding why people behave in certain ways can provide valuable insights for effective marketing and sales strategies.

Buyer Personas for a Marketing Agency

Creating buyer personas can help you better target your marketing efforts. Here are a few potential personas:

• These personas can guide your marketing strategies, service offerings, and communication style.
• By understanding their interests, goals, and challenges, you can tailor your approach to better meet their needs and enhance your agency's effectiveness.

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Phase 1: Refining Customer Segments (Who are we talking to?)

Effective Customer Segmentation Based on Age, Market, and Needs

Customer segmentation is the process of dividing your broader market into smaller, more homogeneous groups to tailor marketing, products, and services for better engagement and results. When basing it on age (a demographic factor), market (often interpreted as geographic location or market type, like urban vs. rural or B2B industry segments), and needs (focusing on shared pain points, preferences, or priorities), you create layered, actionable segments. This hybrid approach combines objective data (age and market) with deeper insights (needs) for precision, leading to higher personalization, loyalty, and ROI.

For example, a fitness brand might segment young urban professionals (age: 25-34, market: city-based) who need quick home workouts (needs: convenience due to busy schedules) versus older rural retirees (age: 65+, market: countryside) seeking low-impact exercises for joint health (needs: sustainability and pain relief). This is more effective than broad campaigns because it addresses specific contexts.

Here's a step-by-step guide to doing this effectively, drawing from proven strategies. Aim for segments that are measurable, accessible, substantial, differentiable, and actionable (the "MASA" framework).

Step 1: Define Your Objectives and Collect Data

Start by clarifying why you're segmenting—e.g., to boost sales, improve retention, or launch targeted campaigns. Identify your ideal customer profile and key questions: What age groups dominate your audience? What markets (locations or sectors) do they come from? What unmet needs drive their behavior?

• Gather Data Sources:
  • For Age (Demographic): Use surveys, CRM data (e.g., Salesforce), analytics tools (e.g., Google Analytics for age breakdowns), or third-party reports (e.g., Statista for generational trends).
  • For Market (Geographic or Type): Collect location data via IP addresses, ZIP codes, or app geolocation; for B2B, use firmographics like industry or company size from tools like LinkedIn Sales Navigator.
  • For Needs: Conduct qualitative research like interviews, focus groups, or social media listening (e.g., via Brandwatch); analyze support tickets, reviews, or behavioral data (e.g., purchase history in e-commerce platforms).
  • Combine with tools: Use AI-powered platforms like CleverTap for real-time behavioral tracking or HubSpot for integrated CRM surveys.

Tip: Start with existing data to avoid overload. For a small business, begin with 100-500 customer records; for larger, use cluster analysis in tools like Python's scikit-learn or Excel.

Step 2: Identify and Prioritize Segmentation Variables

Break down your criteria into variables and create initial distinctions.

• Age-Based: Group into generations (e.g., Gen Z: 18-24, tech-savvy and value-driven; Millennials: 25-40, experience-focused; Gen X: 41-56, stability-oriented; Boomers: 57+, trust-focused). Consider life stages tied to age, like students vs. parents.
• Market-Based: Segment by geography (e.g., urban, suburban, rural) or market type (e.g., emerging vs. mature markets, or industries like tech vs. healthcare). Factor in cultural or economic differences, like higher disposable income in urban areas.
• Needs-Based: List 10-30 problem statements in first-person (e.g., "I need quick delivery because of my busy schedule") from qualitative data. Use stack ranking (pairwise comparisons) to prioritize—tools like OpinionX can automate this for scalability.

Integrate them: Use a "descriptive-first" method—start with age and market filters, then overlay needs to reveal patterns (e.g., urban Gen Z's need for eco-friendly products vs. rural Boomers' need for affordability).

Step 3: Analyze Data and Create Segments

Use quantitative and qualitative analysis to form groups.

• Tools and Methods: Apply cluster analysis (e.g., k-means in R or Python) or discriminant analysis to correlate variables. For needs, rank statements by importance and filter by age/market (e.g., via heatmaps showing need shifts across groups).
• Build Segments: Aim for 4-8 groups. Examples:
  • Segment A: Age 18-24, Urban Market, Needs: Affordability and social proof (e.g., budget fashion for college students via TikTok influencers).
  • Segment B: Age 35-50, Suburban Market, Needs: Convenience and family-oriented (e.g., meal kits for busy parents with quick prep).
  • Segment C: Age 55+, Rural Market, Needs: Reliability and health-focused (e.g., durable home goods with easy access).
• Value Buckets: Group by revenue potential (e.g., high-value vs. low-value customers) to prioritize segments.

Ensure segments are homogeneous within but distinct across criteria.

Step 4: Test, Validate, and Refine Segments

Don't assume—validate.

• Methods: Run A/B tests (e.g., targeted emails via Mailchimp), pilot campaigns, or measure metrics like conversion rates and satisfaction (e.g., NPS surveys). Gather feedback and crowdsource gaps (e.g., add overlooked needs from open responses).
• Refine: Use AI for ongoing optimization (e.g., CleverTap's predictive models). Re-evaluate quarterly as markets evolve—e.g., shifting needs post-economic changes.
• Common Pitfalls to Avoid: Over-relying on assumptions (use data), creating too many segments (start small), or ignoring integration (always layer age/market with needs for depth).

Step 5: Implement and Monitor for Impact

Apply segments to business functions.

• Marketing: Tailor channels (e.g., Instagram for young urban segments, email for older rural ones) and messaging (e.g., emphasize sustainability for needs-focused Gen Z).
• Product Development: Align features with needs (e.g., app integrations for tech-needy markets).
• Sales: Prioritize high-value segments based on age/market filters.
• Monitor KPIs: Track segment profitability, retention, and lifetime value. Adjust as needed—e.g., if a need changes, refresh the ranking.

Benefits and Real-World Examples

This approach yields 20-40% higher engagement and loyalty by addressing real motivations. Examples:

• Amazon: Segments by age (e.g., toys for parents) and market (regional preferences), overlaying needs like fast shipping for convenience-seekers.
• Nike: Targets age groups (youth athletes) in specific markets (urban sports hubs) with needs-based lines (e.g., performance gear for competitive users).
• Glofox (Fitness Software): Segmented gyms by size (market/firmographic) and needs, boosting roadmap decisions and revenue.

Start small with one criterion (e.g., age), then layer in others. If you're data-limited, tools like free Google Forms for surveys or affordable platforms like CleverTap can scale your efforts. With consistent refinement, this will drive targeted growth.