{"id":7999,"date":"2021-06-25T09:30:00","date_gmt":"2021-06-25T04:00:00","guid":{"rendered":"https:\/\/kylas.io\/?p=7999"},"modified":"2023-04-24T10:11:03","modified_gmt":"2023-04-24T04:41:03","slug":"the-complete-guide-to-market-segmentation-for-small-business-growth","status":"publish","type":"post","link":"https:\/\/kylas.io\/en\/business-growth\/the-complete-guide-to-market-segmentation-for-small-business-growth","title":{"rendered":"Market Segmentation: A Complete Guide for Small Businesses"},"content":{"rendered":"\n<p class=\"has-medium-font-size\">For <a href=\"https:\/\/kylas.io\/business-growth\/business-tips-and-tricks\" target=\"_blank\" rel=\"noreferrer noopener\"><span style=\"text-decoration: underline;\">small business growth<\/span><\/a>, when you first put your marketing&nbsp;or sales&nbsp;function into gear,&nbsp;you\u2019re usually faced with a blank slate \u2013 and that can be scary.&nbsp;&nbsp;<\/p>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"has-medium-font-size\"><em>Where do you get started? How do you reach out to people and say \u201chey,&nbsp;check out&nbsp;our product!\u201d?<\/em>&nbsp;<\/p>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"has-medium-font-size\">Setting up social media accounts, getting a website ready, running advertising campaigns, and planning sales activities&nbsp;\u2013 these are what are seen as functions of marketing&nbsp;&amp; sales, but that\u2019s where most people get it wrong. These activities are simply the&nbsp;<em>outcome&nbsp;<\/em>of marketing&nbsp;&amp; sales&nbsp;strategies.&nbsp;<\/p>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<div class=\"wp-block-ht-block-toc  is-style-outline htoc htoc--position-wide toc-list-style-plain\" data-htoc-state=\"expanded\"><span class=\"htoc__title\"><span class=\"ht_toc_title\">Table of Contents<\/span><span class=\"htoc__toggle\"><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"16\" height=\"16\"><g fill=\"#444\"><path d=\"M15 7H1c-.6 0-1 .4-1 1s.4 1 1 1h14c.6 0 1-.4 1-1s-.4-1-1-1z\"><\/path><path d=\"M15 1H1c-.6 0-1 .4-1 1s.4 1 1 1h14c.6 0 1-.4 1-1s-.4-1-1-1zM15 13H1c-.6 0-1 .4-1 1s.4 1 1 1h14c.6 0 1-.4 1-1s-.4-1-1-1z\"><\/path><\/g><\/svg><\/span><\/span><div class=\"htoc__itemswrap\"><ul class=\"ht_toc_list\"><li class=\"\"><a href=\"#htoc-the-need-for-market-segmentation\">The&nbsp;Need for&nbsp;Market&nbsp;Segmentation&nbsp;for Small Business Growth<\/a><\/li><li class=\"\"><a href=\"#htoc-4-benefits-of-market-segmentation1\">4&nbsp;Benefits of&nbsp;Market&nbsp;Segmentation for Small Business Growth<\/a><ul class=\"ht_toc_child_list\"><\/ul><\/li><li class=\"\"><a href=\"#htoc-types-of-market-segmentation\">Types of&nbsp;Market&nbsp;Segmentation&nbsp;<\/a><ul class=\"ht_toc_child_list\"><\/ul><\/li><li class=\"\"><a href=\"#htoc-5-5-steps-to-segmenting-your-market\">5&nbsp;Steps&nbsp;to Segmenting your Market<\/a><ul class=\"ht_toc_child_list\"><\/ul><\/li><\/ul><\/div><\/div>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n<div class=\"ub-styled-box ub-notification-box\" id=\"ub-styled-box-7afd85e6-dd0b-4b0e-ae19-75f0dfd10399\">\n\n\n<p style=\"font-size:22px\">To achieve business growth, knowing your audience is essential. With <a href=\"https:\/\/kylas.io\/features\/lead-management\" target=\"_blank\" rel=\"noreferrer noopener\"><span style=\"text-decoration: underline;\">Kylas CRM<\/span><\/a>, track your leads through different stages of their buying journey and convert them into your potential customers. <\/p>\n\n\n<\/div>\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"htoc-the-need-for-market-segmentation\"><strong>The&nbsp;Need for&nbsp;Market&nbsp;Segmentation<\/strong>&nbsp;for Small Business Growth<\/h2>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"has-medium-font-size\">Small business growth requires an effective marketing and sales strategy. And to get your marketing&nbsp;&amp; sales&nbsp;off the ground, you first need to get a few answers in place&nbsp;&#8211;&nbsp;the&nbsp;million-dollar&nbsp;answer&nbsp;being&nbsp;to the question:&nbsp;&nbsp;<\/p>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"has-medium-font-size\"><strong>\u201cWho is&nbsp;Our&nbsp;Customer?\u201d<\/strong>&nbsp;<\/p>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"has-medium-font-size\">With today\u2019s complex consumer aspirations, needs, and buying patterns, answering that question is no longer as easy as it used to be.<\/p>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"has-medium-font-size\">Your target customer today won\u2019t just be mothers! It will be working mothers striving for that work-home balance. They are likely to stay conscious about the brands they buy,&nbsp;spending time on LinkedIn and&nbsp;Instagram, with little to no digital exposure outside of working hours.&nbsp;&nbsp;<\/p>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"has-medium-font-size\">It will also be the stay-at-home moms who\u2019re online in the afternoon. They are constantly worried about their children and extremely focused on family life.&nbsp;These two types of mothers will buy your product in different ways. Perhaps, even for different reasons, most likely at different times of the day.&nbsp;<\/p>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"has-medium-font-size\">This is important to know when most of your brand&nbsp;or&nbsp;product information is being sought online. <\/p>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"has-medium-font-size\">Now, the responsibility is&nbsp;for&nbsp;you to reach out to them&nbsp;and introduce them to your product. This means you need to know exactly who&nbsp;you want to reach out to.&nbsp;<\/p>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"has-medium-font-size\"><strong>So,&nbsp;Market&nbsp;Segmentation is&nbsp;Essential&nbsp;Because&#8230;<\/strong>&nbsp;<\/p>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"has-medium-font-size\">&#8230;in today\u2019s world of consumer-led marketing&nbsp;&amp; sales, you\u2019re going to need to personalize how you talk to your customers and the experience they have with you. Without personalization, you won\u2019t stand out from the&nbsp;sea of brands everyone is exposed to every&nbsp;day. Also, you won\u2019t be able to get them to relate with you more than they do with other brands. And you&nbsp;can\u2019t create personalization without market segmentation!&nbsp;According to a study by&nbsp;Bain &amp; Company, <a href=\"https:\/\/hbr.org\/2008\/02\/find-your-sweet-spot-1.html\" target=\"_blank\" rel=\"noreferrer noopener\"><span style=\"text-decoration: underline;\">81%<\/span><\/a> of executives found that segmentation was crucial for growing profits.<\/p>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<hr class=\"wp-block-separator has-css-opacity\"\/>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"htoc-4-benefits-of-market-segmentation1\"><strong>4&nbsp;Benefits of&nbsp;Market&nbsp;Segmentation<\/strong> for Small Business Growth<\/h2>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"htoc-1-a-better-understanding-of-your-customers\" style=\"font-size:22px\"><strong>1. A Better Understanding of Your Customers<\/strong><\/h3>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"has-medium-font-size\">As we\u2019ve outlined above, the biggest base-level benefit of segmenting your market is that you get a deep understanding of your customers. <\/p>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n\n\n<p class=\"has-medium-font-size\">Not every brand has a niche market. But, even those that deal with just one type of customer, still need to segment for&nbsp;varied preferences and buying patterns.&nbsp;<\/p>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"has-medium-font-size\">For brands with wider target audiences (like department stores, grocery stores, or some of those in manufacturing\/consumer goods\/FMCG), segmenting the market becomes of utmost importance to be able to target customers&nbsp;of every kind, and present a unique experience yet cohesive brand experience tailored to each of them.&nbsp;<\/p>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"has-medium-font-size\">Essentially, segmenting the market and conducting adequate research into each segment of customers helps you understand who is likely to buy your product, why, when and how. It helps you market&nbsp;and sell&nbsp;to them much more effectively, and boosts your small business growth.<\/p>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"htoc-2-a-better-connect-with-your-customers\" style=\"font-size:22px\">2. <strong>A&nbsp;Better Connect with Your Customers<\/strong><\/h3>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"has-medium-font-size\">Once you have a deeper understanding of your various customers, the idea is to use that understanding to build a deeper brand connection&nbsp;with&nbsp;<em>all&nbsp;<\/em>of them. We specify&nbsp;<em>all&nbsp;<\/em>to stress that not everyone is interested&nbsp;in\/looking for the same thing from your brand. In fact, many of them are not looking for your brand. <\/p>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n\n\n<p class=\"has-medium-font-size\">But when you understand them, you can use that insight to build relatable content. For that, you use platforms that each of them frequents at the right time. This way you can draw them into what you have to offer.<\/p>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"htoc-3-higher-revenue-higher-returns-on-marketing-spends\" style=\"font-size:22px\">3. <strong>Higher&nbsp;Revenue +&nbsp;Higher&nbsp;Returns on&nbsp;Marketing&nbsp;Spends<\/strong><\/h3>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"has-medium-font-size\">Once you are able to&nbsp;streamline your marketing strategy, communication and collaterals based on what each of your customer needs, you\u2019ll see a direct increase in response. <\/p>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n\n\n<p class=\"has-medium-font-size\">Right from&nbsp;the clicks you get on your ads to the engagement you see on your social media, the open rates for your emails, and the attendance for your events \u2013 you&#8217;ll&nbsp;see a decided increase&nbsp;in the number of people interacting with your brand and buying from your brand.<\/p>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"has-medium-font-size\">What\u2019s more, because you\u2019re reaching the right people in the right way, you\u2019re saving yourself the wasted marketing budget of reaching people less likely to buy from you&#8230;thus increasing your return on marketing spends&nbsp;and creating a good&nbsp;<a href=\"https:\/\/kylas.io\/leadership-growth\/digital-marketing-for-small-businesses\" target=\"_blank\" rel=\"noreferrer noopener\"><u>digital presence<\/u><\/a>&nbsp;for your brand\/product!<\/p>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"htoc-4-increased-brand-loyalty\" style=\"font-size:22px\">4. <strong>Increased&nbsp;Brand&nbsp;Loyalty<\/strong><\/h3>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"has-medium-font-size\">Every brand has its own personality, its own way of connecting with potential customers. And when you\u2019re connecting with the right people in the right way, they tend to relate with your brand more than the others they see as alternatives \u2013 to put it poetically, you form the starting of a sort of bond.<\/p>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n\n\n<p class=\"has-medium-font-size\">Combine that with great <a href=\"https:\/\/kylas.io\/sales-effectiveness\/customer-insights\" target=\"_blank\" rel=\"noreferrer noopener\"><span style=\"text-decoration: underline;\">customer experience<\/span><\/a> and customer service. You will continue to build on what makes you special to each of these customers. This will eventually result in brand loyalty that will bring you the most coveted customer of all: a brand advocate.<\/p>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n<div class=\"ub-styled-box ub-notification-box\" id=\"ub-styled-box-a37f3072-25bb-44d1-8ce4-222f4484d468\">\n\n\n<p style=\"font-size:22px\">Building a brand from scratch requires a lot of hard work. Learn how to plan and develop your brand elements from<a href=\"https:\/\/kylas.io\/leadership-growth\/small-business-marketing-building-a-brand\" target=\"_blank\" rel=\"noreferrer noopener\"> <span style=\"text-decoration: underline;\">Kylas&#8217; blog<\/span><\/a>. <\/p>\n\n\n<\/div>\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<hr class=\"wp-block-separator has-css-opacity\"\/>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"htoc-types-of-market-segmentation\"><strong>Types of&nbsp;Market&nbsp;Segmentation<\/strong>&nbsp;<\/h2>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"has-medium-font-size\">You might wonder how one begins to segment your target customers. If you go by basic logic, any segmentation must occur on the basis of certain&nbsp;basic&nbsp;common traits&nbsp;or factors.&nbsp;There are a few such established factors that have been in use since just about forever in marketing:&nbsp;<\/p>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"htoc-1-geographic-segmentation\">1. <strong>Geographic&nbsp;Segmentation<\/strong><\/h3>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"has-medium-font-size\">As the name goes, this segmentation is done based on the location of your target customers. Local&nbsp;small&nbsp;businesses will usually target their immediate localities, or localities within a certain radius, but national&nbsp;and global&nbsp;businesses&nbsp;have their work cut out for them with&nbsp;a target location that spans&nbsp;an&nbsp;entire country or&nbsp;the&nbsp;world.&nbsp;<\/p>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"has-medium-font-size\">This depends on a number of factors, starting with what you produce\/offer, the people that will benefit from it, and how you can get it to them. A lot of companies start small and expand to&nbsp;the&nbsp;national or international level, but that\u2019s not always a necessity!&nbsp;&nbsp;<\/p>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"has-medium-font-size\">Some of the most successful companies go global to be able to capture the market right away.<\/p>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"has-medium-font-size\">Geographic segmentation involves segmenting your customers by:&nbsp;<\/p>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<ol class=\"has-medium-font-size\"><li>Neighborhood\/Zip code&nbsp;(for boutique\/hyperlocal businesses)&nbsp;<\/li><\/ol>\n\n\n\n<ol start=\"2\" class=\"has-medium-font-size\"><li>Town&nbsp;<\/li><\/ol>\n\n\n\n<ol start=\"3\" class=\"has-medium-font-size\"><li>City&nbsp;<\/li><\/ol>\n\n\n\n<ol start=\"4\" class=\"has-medium-font-size\"><li>State&nbsp;<\/li><\/ol>\n\n\n\n<ol start=\"5\" class=\"has-medium-font-size\"><li>Country&nbsp;<\/li><\/ol>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"htoc-2-demographic-segmentation\" style=\"font-size:22px\">2. <strong>Demographic&nbsp;Segmentation<\/strong><\/h3>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"has-medium-font-size\">In general, demographic&nbsp;information refers to details\/data such as age, gender, education, employment, income, marital status, familial&nbsp;structure, ethnicity, etc.&nbsp;Demographic segmentation is done on the basis of these traits \u2013 one of them, or a combination of multiple.&nbsp;<\/p>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"has-medium-font-size\">For example,&nbsp;Brand XYZ&nbsp;may choose to target&nbsp;30\u201345-year-old&nbsp;unmarried women with a master\u2019s degree and income of over $100,000 per year.&nbsp;<\/p>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"has-medium-font-size\">Based on this information alone, you could guess that&nbsp;Brand XYZ\u2019s&nbsp;product or service is targeted to busy, career-minded women with fast-paced lives \u2013 that&#8217;s the power of a demographic segmentation done well.&nbsp;It&#8217;s a niche market, but when they reach women that fall into this demographic category, they\u2019re most likely to see their highest conversions.&nbsp;<\/p>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"htoc-3-psychographic-segmentation\" style=\"font-size:22px\">3. <strong>Psychographic&nbsp;Segmentation<\/strong><\/h3>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"has-medium-font-size\">Psychographic traits are those that define the personality or character of a person \u2013 they tell you how that person thinks, what they want to achieve in life, and the kind of problems or needs they have. <\/p>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"has-medium-font-size\">In today\u2019s world where two customers rarely think alike, proper insight into&nbsp;psychographic traits&nbsp;gives you all the data you need to be able to connect to anyone and everyone.&nbsp;<\/p>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"has-medium-font-size\">Psychographic segmentation is done on the basis of:&nbsp;<\/p>\n\n\n\n<div style=\"height:20px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<ol class=\"has-medium-font-size\"><li>Personality traits&nbsp;<\/li><\/ol>\n\n\n\n<ol start=\"2\" class=\"has-medium-font-size\"><li>Interests\/hobbies&nbsp;<\/li><\/ol>\n\n\n\n<ol start=\"3\" class=\"has-medium-font-size\"><li>Values&nbsp;<\/li><\/ol>\n\n\n\n<ol start=\"4\" class=\"has-medium-font-size\"><li>Aspirations&nbsp;<\/li><\/ol>\n\n\n\n<ol start=\"5\" class=\"has-medium-font-size\"><li>Goals\/aspirations&nbsp;<\/li><\/ol>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"has-medium-font-size\">As you can imagine, this sort of data is harder to come by and much more difficult to dissect. If you conduct thorough consumer research and use psychographic segmentation, however, you\u2019ll be able to establish a much deeper connection on a personal level with each potential customer.<\/p>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"has-medium-font-size\">Let\u2019s take the&nbsp;popular&nbsp;example of <a href=\"https:\/\/www.airbnb.co.in\/\" target=\"_blank\" rel=\"nofollow noreferrer noopener\"><u>Airbnb<\/u><\/a>. It targets customers that want to go beyond the tourist experience of hotels in new places, to get the true feel of the city\/town they\u2019re visiting. <\/p>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"has-medium-font-size\">These customers don\u2019t want to simply see the attractions. They want to visit the same restaurants as locals, take in the attractions, live in local&nbsp;neighborhoods, visit local stores and travel like locals, so they feel part of the fabric of the place they\u2019re visiting.&nbsp;<\/p>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"has-medium-font-size\">Hotels, on the other hand, target the other half of&nbsp;travelers&nbsp;\u2013 those who want to be waited on, who want the convenience and luxury of ready meals&nbsp;and service,&nbsp;and so on.<\/p>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"htoc-4-behavioral-segmentation\" style=\"font-size:22px\">4. <strong>Behavioral&nbsp;Segmentation<\/strong><\/h3>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"has-medium-font-size\">As the name suggests, behavioral segmentation is done&nbsp;based on certain behavioral traits&nbsp;or habits&nbsp;of consumers&nbsp;in regard to purchases. <\/p>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"has-medium-font-size\">Everyone has a different way in which they approach their buying patterns. It depends on where they shop online and how they discover new brands. Whether they like to splurge or save,&nbsp;whether they tend to stay loyal to brands or keep looking for newer\/better alternatives, whether they\u2019re&nbsp;well-versed with online shopping or still getting there, etc.&nbsp;<\/p>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"has-medium-font-size\">Essentially, behavioral segmentation is done on the basis of-&nbsp;<\/p>\n\n\n\n<div style=\"height:20px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<ol class=\"has-medium-font-size\"><li>Spending habits&nbsp;<\/li><\/ol>\n\n\n\n<ol start=\"2\" class=\"has-medium-font-size\"><li>Online browsing habits&nbsp;<\/li><\/ol>\n\n\n\n<ol start=\"3\" class=\"has-medium-font-size\"><li>Common purchasing patterns&nbsp;<\/li><\/ol>\n\n\n\n<ol start=\"4\" class=\"has-medium-font-size\"><li>Relationships with brands&nbsp;<\/li><\/ol>\n\n\n\n<ol start=\"5\" class=\"has-medium-font-size\"><li>Product\/technology use&nbsp;<\/li><\/ol>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"has-medium-font-size\">Behavioral segmentation is often used as a supplementary form of segmentation, to identify cohorts based on certain behaviors. What that means is not many brands will use behavioral&nbsp;segmentation&nbsp;in the first place. They&#8217;ll rather identify cohorts among their segments.&nbsp;<\/p>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<hr class=\"wp-block-separator has-css-opacity\"\/>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"htoc-5-5-steps-to-segmenting-your-market\"><strong>5&nbsp;Steps&nbsp;to Segmenting your Market<\/strong><\/h2>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"htoc-1-know-what-you-want-to-achieve\" style=\"font-size:22px\"><strong>1.&nbsp;Know&nbsp;What&nbsp;You&nbsp;Want to&nbsp;Achieve<\/strong><\/h3>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"has-medium-font-size\">Like any step in a marketing&nbsp;or&nbsp;<a href=\"https:\/\/kylas.io\/sales-effectiveness\/sales-strategy\" target=\"_blank\" rel=\"noreferrer noopener\"><u>sales&nbsp;strategy<\/u><\/a>, you have to know what you hope to gain by segmenting your market.&nbsp;&nbsp;<\/p>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"has-medium-font-size\"><em>Do you want to just better understand your customers?&nbsp;Do you want to create more relatable&nbsp;communication?&nbsp;Choose the right marketing channels for small business growth.&nbsp;Do you&nbsp;perhaps&nbsp;want to create a sales strategy that handles each segment differently?&nbsp;Or perhaps you want to inform a larger&nbsp;business&nbsp;growth&nbsp;strategy.<\/em>&nbsp;<\/p>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"has-medium-font-size\">Whatever your reasons may be, it helps to know what you expect to get from segmenting your customers. This helps you in measuring up the process against what you expect as the ultimate output. If you need to plan your Go-To-Market strategy, for example, knowing where your potential customers are located will influence the process.&nbsp;<\/p>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"htoc-2-identify-the-parameters-for-segmentation\" style=\"font-size:22px\"><strong>2. Identify the&nbsp;Parameters for&nbsp;Segmentation<\/strong><\/h3>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"has-medium-font-size\">Once you know what you expect to achieve from your market segmentation, you can choose the segmentation type accordingly. A Go-To-Market strategy, as we mentioned, will require you to look at where your customers are located physically. This means their geographic segmentation as well as who they are (demographic segmentation).<\/p>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"has-medium-font-size\">Essentially, you will most likely \u2013 though not always \u2013 need to layer two types of market segmentation to arrive at the most accurate representation of your prospective customers. We recommend using the most distinct type of segmentation first, and then adding to it with supplementary types to lend more focus to the outcome.&nbsp;<\/p>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"has-medium-font-size\">At the same time, you don\u2019t want to narrow down your audience too much. Leave a bit of grey area for potential customers who you may not have identified as your ideal customers, but may be interested in your product\/service anyway! When it comes to predicting consumer behavior&nbsp;and planning your audiences, you need to leave a bit of leeway.&nbsp;<\/p>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"htoc-3-identify-how-to-target-each-segment\" style=\"font-size:22px\"><strong>3. Identify&nbsp;How to&nbsp;Target&nbsp;Each&nbsp;Segment<\/strong><\/h3>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"has-medium-font-size\">Segmenting your market is only useful when you have a strategy to be able to target\/leverage each of those segments. In essence, when segmenting your market, there\u2019s no point in getting caught up in the possibilities and theory of it. If it doesn\u2019t simplify&nbsp;how&nbsp;you will reach and convert&nbsp;each&nbsp;market&nbsp;segment.&nbsp;<\/p>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"has-medium-font-size\">Firstly, ensure you\u2019re productively segmenting your market is to pick up each segment one by one. Secondly, run through how you can best reach and connect with them. This involves which&nbsp;marketing&nbsp;channels you would use, how it can help streamline your sales strategy,&nbsp;how it will elevate the effectiveness of your advertising,&nbsp;etc.&nbsp;<\/p>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"has-medium-font-size\">If you have a clear enough picture of how that will be done \u2013 and how it will benefit your end goal of reaching more people\/making more revenue\/improving your ROI \u2013 you know that&nbsp;you&#8217;ve&nbsp;correctly segmented your market.&nbsp;<\/p>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"htoc-4-test-each-market-segment\" style=\"font-size:22px\"><strong>4. Test&nbsp;Each&nbsp;Market&nbsp;Segment<\/strong><\/h3>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"has-medium-font-size\">Putting a theory and strategy into motion is always a dicey game in marketing and sales. You might start out with 3 market segments and a clear idea of how to target them, only to run campaigns and find out that certain segments aren\u2019t reacting the way you\u2019d expect them to at all.&nbsp;<\/p>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"has-medium-font-size\">In the end, successful market segmentation comes down to the actual response of each segment to your brand, and you might be in for some surprises there. Many a brand has discovered that their ideal customers didn\u2019t&nbsp;prefer&nbsp;their product over competitors, while an&nbsp;unexpected segment of customers became brand loyalists.&nbsp;<\/p>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"has-medium-font-size\">We recommend starting slow by testing out each segment against the outcome you\u2019re looking for, before scaling your strategies and trying to conquer all of&nbsp;them.&nbsp;<\/p>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"htoc-5-revise-and-revisit\" style=\"font-size:22px\"><strong>5. Revise and&nbsp;Revisit<\/strong>&nbsp;<\/h3>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"has-medium-font-size\">Once you\u2019ve tested each market segment, you\u2019re in a good place to make revisions to any that need reconsideration. Perhaps one segment just didn\u2019t respond the way you expected them to. Or, perhaps, you discovered a new segment along the way. <\/p>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"has-medium-font-size\">Either way, market segmentation isn\u2019t always a done-and-dusted deal; you can always make certain changes, loosen up on your parameters to expand the segment, and so on.&nbsp;<\/p>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"has-medium-font-size\">Even after you\u2019ve finalized your segments, a change in <a href=\"https:\/\/kylas.io\/business-growth\/6-ways-increase-small-business-sales\" target=\"_blank\" rel=\"noreferrer noopener\"><span style=\"text-decoration: underline;\">small business growth strategy<\/span><\/a> or product development may dictate that you relook at the entire market segmentation just a few months down the line. So, when it comes to market segmentation, the more agile you can be within the parameters the better it will work out for you in the long run!<\/p>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<hr class=\"wp-block-separator has-css-opacity\"\/>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"has-medium-font-size\">Are you ready to conduct your own market segmentation exercise? As we said earlier, it\u2019s one of the best places to get started on marketing and sales strategies&nbsp;for small&nbsp;business&nbsp;growth! In most cases, you\u2019ll find that it even adds clarity&nbsp;to&nbsp;some high-level&nbsp;business&nbsp;strategies.&nbsp;<\/p>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"has-medium-font-size\">And the best way to conduct your own market segmentation exercises will need <a href=\"https:\/\/kylas.io\/sales-effectiveness\/small-businesses-need-sales-crm-software\" target=\"_blank\" rel=\"noreferrer noopener\"><span style=\"text-decoration: underline;\">sales CRM software<\/span><\/a> doing what it does best \u2013 helping small&nbsp;businesses&nbsp;grow with ease.&nbsp;<\/p>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n<div class=\"ub-styled-box ub-notification-box\" id=\"ub-styled-box-71037275-1ce5-4b93-bbbd-71eef317e762\">\n\n\n<p style=\"font-size:22px\">With <a href=\"https:\/\/kylas.io\/\" target=\"_blank\" rel=\"noreferrer noopener\"><span style=\"text-decoration: underline;\">Kylas&#8217;<\/span><\/a> workflow automation, businesses can automate a variety of routine tasks and minimize manual errors.<\/p>\n\n\n<\/div>\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"has-medium-font-size\">If there&nbsp;are&nbsp;any&nbsp;questions,&nbsp;we can answer for you to better segment your market, let us know! Simply drop a line in the comments section below and we\u2019d be happy to help you along your way.&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>For small business growth, when you first put your marketing&nbsp;or sales&nbsp;function into gear,&nbsp;you\u2019re usually faced with a blank slate \u2013 and that can be scary.&nbsp;&nbsp; Where do you get started? How do you reach out to people and say \u201chey,&nbsp;check out&nbsp;our product!\u201d?&nbsp; Setting up social media accounts, getting a website ready, running advertising campaigns, and &hellip; <\/p>\n<p class=\"link-more\"><a href=\"https:\/\/kylas.io\/en\/business-growth\/the-complete-guide-to-market-segmentation-for-small-business-growth\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;Market Segmentation: A Complete Guide for Small Businesses&#8221;<\/span><\/a><\/p>\n","protected":false},"author":23,"featured_media":13659,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"ub_ctt_via":"","footnotes":""},"categories":[14],"tags":[22,31],"acf":[],"featured_image_src":"https:\/\/kylas.io\/en\/wp-content\/uploads\/2021\/06\/Blue-and-White-Illustrative-Technology-Startup-Business-Plan-Presentation-1080-\u00d7-1080px-1.jpg","author_info":{"display_name":"Shagun Sharma","author_link":"https:\/\/kylas.io\/en\/author\/shagun"},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v21.5 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Market Segmentation: A Complete Guide for Small Businesses<\/title>\n<meta name=\"description\" content=\"Planning your marketing and sales strategies? 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Follow this complete guide to market segmentation for small business growth.","og_url":"https:\/\/kylas.io\/en\/business-growth\/the-complete-guide-to-market-segmentation-for-small-business-growth","og_site_name":"Kylas Growth Engine | Sales CRM Software for Small businesses","og_image":[{"width":1200,"height":675,"url":"https:\/\/kylas.io\/en\/wp-content\/uploads\/2021\/06\/Blue-and-White-Illustrative-Technology-Startup-Business-Plan-Presentation-1080-\u00d7-1080px-1.jpg","type":"image\/jpeg"}],"author":"Shagun Sharma","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Shagun Sharma","Est. reading time":"13 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/kylas.io\/en\/business-growth\/the-complete-guide-to-market-segmentation-for-small-business-growth","url":"https:\/\/kylas.io\/en\/business-growth\/the-complete-guide-to-market-segmentation-for-small-business-growth","name":"Market Segmentation: A Complete Guide for Small Businesses","isPartOf":{"@id":"https:\/\/kylas.io\/en\/#website"},"datePublished":"2021-06-25T04:00:00+00:00","dateModified":"2023-04-24T04:41:03+00:00","author":{"@id":"https:\/\/kylas.io\/en\/#\/schema\/person\/58914992bfe5c67716dfe2e8863250a3"},"description":"Planning your marketing and sales strategies? Follow this complete guide to market segmentation for small business growth.","breadcrumb":{"@id":"https:\/\/kylas.io\/en\/business-growth\/the-complete-guide-to-market-segmentation-for-small-business-growth#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/kylas.io\/en\/business-growth\/the-complete-guide-to-market-segmentation-for-small-business-growth"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/kylas.io\/en\/business-growth\/the-complete-guide-to-market-segmentation-for-small-business-growth#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/kylas.io\/en\/"},{"@type":"ListItem","position":2,"name":"Market Segmentation: A Complete Guide for Small Businesses"}]},{"@type":"WebSite","@id":"https:\/\/kylas.io\/en\/#website","url":"https:\/\/kylas.io\/en\/","name":"Kylas Growth Engine | Sales CRM Software for Small businesses","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/kylas.io\/en\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/kylas.io\/en\/#\/schema\/person\/58914992bfe5c67716dfe2e8863250a3","name":"Shagun Sharma","description":"Shagun is a content marketer at Kylas, extremely well-versed in all things Marketing. She works closely with the sales team to create best-in-class content for our readers. Her experience combined with her thorough research skills makes all her blogs very in-depth and insightful. In her leisure time, Shagun enjoys hiking, gardening, and immersing herself in music."}]}},"_links":{"self":[{"href":"https:\/\/kylas.io\/en\/wp-json\/wp\/v2\/posts\/7999"}],"collection":[{"href":"https:\/\/kylas.io\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/kylas.io\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/kylas.io\/en\/wp-json\/wp\/v2\/users\/23"}],"replies":[{"embeddable":true,"href":"https:\/\/kylas.io\/en\/wp-json\/wp\/v2\/comments?post=7999"}],"version-history":[{"count":40,"href":"https:\/\/kylas.io\/en\/wp-json\/wp\/v2\/posts\/7999\/revisions"}],"predecessor-version":[{"id":18487,"href":"https:\/\/kylas.io\/en\/wp-json\/wp\/v2\/posts\/7999\/revisions\/18487"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/kylas.io\/en\/wp-json\/wp\/v2\/media\/13659"}],"wp:attachment":[{"href":"https:\/\/kylas.io\/en\/wp-json\/wp\/v2\/media?parent=7999"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/kylas.io\/en\/wp-json\/wp\/v2\/categories?post=7999"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/kylas.io\/en\/wp-json\/wp\/v2\/tags?post=7999"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}