A BEGINNER’S GUIDE TO LEVERAGE
DATA FOR MARKET ANALYSIS
INTRODUCTION
- Customer Segmentation is the process of dividing your customers into homogeneous groups.
- Demographic factors such as age, gender, location maybe used.
- Market Analysis is the process of gathering and analyzing information about a target market.
- This information can include demographics, psychographics, buying behavior and competitive landscape
HOW DOES CUSTOMER SEGMENTATION AND MARKET ANALYSIS WORK?
- First we need to cluster customers based on their characteristics.
- Market analysis can be performed on these clusters to identify most profitable segments and can develop marketing strategies.
- These tools are powerful that can enhance market penetration.
TYPES OF CUSTOMER SEGMENTATION AND MARKET ANALYSIS
USES OF CUSTOMER SEGMENTATION AND MARKET ANALYSIS
- Improving market campaigns
- Better product development
- Enhanced customer service
- Increased revenue/profits
- Improved decision making
- Increased customer retention
- Improved competitiveness
CHALLENGES OF CUSTOMER SEGMENTATION AND MARKET ANALYSIS
- If the data is inaccurate or incomplete, the results will be unreliable
- It can be time consuming and expensive, business with limited resources may find difficult to implement
- Need to hire skilled consultants or use better software to implement this due to high complexity