How To Grow Your Business By Segmenting Your Market

When you double down on targeting the right people with your offers and use messaging that completely resonates with them, then you will grow your business and best of all, if you’re passionate about your business and your offers, you’ll be in that enviable position to sell without selling.

 

Have you felt there might have been something missing with knowing and finding your tribe, have you got a great product and the right audience, but something isn’t gelling? We’ll stick with me as over the coming weeks I’m going to be taking a deep dive into our customers and easy things you can do to show you how to get your business back on track.

 

I’m Lor Bradley, a business strategist, business mentor and online business consultant and I’ve started, grown and scaled businesses for myself and other entrepreneurs for almost thirty years. And in my videos I’m going to show you how.

 

OK, so let’s get going!

 

There Are 3 Ways To Grow Your Business:

  1. to sell more,
  2. to increase your customers or
  3. to increase your prices

 

Today we are focusing on your customer base but, think about this, not everyone out there currently orbiting your business is going to want all of the great things you have to offer.  And I’m sure you already know that by creating an ideal client avatar, you can better identify those people who will be a good match for your offerings.

 

And when you create an ideal client avatar (that’s your ideal paying customer) that identifies the person who would most benefit most from your offerings, you naturally start to narrow down your audience. One of the things I talk about, and this is super important, is narrowing your focus to understand the slight differences between your ideal customers, and your ideal PAYING customers. And this means homing in to understand those people who are going to actually put their cash on the table and invest in you.

 

And this process of narrowing your focus to laser in on attracting your perfect tribe into your world and hopefully get yourself into that enviable position of selling without selling is called market segmentation. And when you segment your audience it’s kind of like sorting out a box of different coloured Lego pieces. You empty the box of pieces and sort them into groups based on their common qualities, and sometimes you might sort them all over again into entirely different groupings. And some groupings will be a perfect match for your business right now, and some may be for later and some may not even be ideal for you at 

 

So, segmenting your audience is basically you just doing your niche research and saying, “this group of people close to my business have something in common, so I’m going to group them all together.”  And once you’ve worked out how you want to organise these people based on those attributes that they have in common; you can then make your messaging much more personalised and relevant to them. And segmenting your audience in effect helps you speak to people in the way they would like to be spoken to. And you can build some really meaningful connections this way!

 

Why Start Segmenting Your Market?

 

If you have your ideal paying customer profile nailed down tight then why, and when, would you want to segment your audience?

 

And, there are some situations where you may want to take your ideal paying customer profile a step further and segment it to create multiple audience profiles. So, we’re going to take a quick look at when you would want to do some further work to segment and organise your audience:

 

1. When you have multiple offerings that solves different problems or needs for your audience.

 

And it’s usually the case that these offerings are usually serving different types of people.

 

2. You're seeing shifts in the marketplace

 

You are seeing quite big shifts in your audience demographics in your marketplace so you’re going to need to create targeted content for these various groups, or demographics of people.

 

3. To identify your highest value customers

 

You might decide to separate your audience into a VIP list of your best buyers and your brand champions.

 

So, segmenting your audience is also going to give you a much clearer understanding of your niche marketplace, which is always helpful and will help you to ultimately grow your business.

 

HOW TO START SEGMENTING YOUR AUDIENCE

 

OK, I’m often asked how to make a start on segmenting Your Audience. And there are many ways to get started but it really depends on what your goals for doing this work are. I suggest you get started by thinking about these things. I’m going to give you some suggestions to get you started but, you’re going to look at your graphics!

 

Step One: Your Demographics segmentation.

 

And an example of demographics means you might have paying customers who live in different geographical areas, they may spread across two or more age groups, they may have different income levels, and so on. Any of you working across multiple locations will find it useful to separate your audience by country, or by language.

 

Step Two: Think about your psychographics segmentation.  

 

And an example of psychographics are the more personal attributes about your audience such as their beliefs, their values and their lifestyles. You’re naturally going to have an audience of customers who are going to be motivated by different personal needs so you might want to segment them this way - by need. Your audience may also have vastly different personalities, lifestyles, beliefs and core values so think about those.

 

Step Three: think about their buying behaviour.

 

And we work this into our audience segmentation strategy because if you know the demographics and psychographics of exactly who’s buying your premium products versus your cheaper-end products, or who’s purchasing at a higher volume then it becomes a much faster way to grow your business if you’re capitalising all your marketing and selling strategies on this valuable research.

 

Another useful tip is to try segmenting your audience, or subscriber list into people who haven’t purchased from you yet, and then those who’ve already made a purchase, and then lastly, your repeat buyers. You could even further divide those groupings into those people you think are more likely, or less likely to buy from you, and then work out WHAT you are going to DO with those groups – do you warm them up with a promo campaign to win some sales, or do you ignore them or send them elsewhere?

 

So, you’ll need to think about your follow-on strategy and sales tactics.

 

DO YOU NEED TO SEGMENT YOUR AUDIENCE?

 

You’re probably wondering now if you need to Segment your own audience! And it’s always useful to group your audience, but if you know your audience pretty well already then it will probably already be coming clear to you now as to why you’ll need to start grouping them. If you have an ideal paying customer profile already (or your ideal client avatar), you may start to find that an increasing number of your audience might not actually fit into your current profile.

 

Maybe you’re starting to see that people from another geographical area are starting to follow you, or they have those different beliefs or needs that I spoke about earlier.

 

So! THINK about this as you may need to identify this second group!

 

Another reason to re-segment your audience is if you’re starting to make changes in your business. Maybe your market has changed and you’re having to branch out into a new niche, or you’re launching a brand-new product which needs to target a new audience.

 

HOW TO SEGMENT YOUR AUDIENCE

 

If you’ve done your homework on the foundations of your business, then you’ll have already created your ideal paying customer profile. If you haven’t yet don’t that, then get started there! If you do have one, then that’s great news.

 

What you’ll need to do now is start over and build out a second profile which identifies your new groups graphics, so that’s their demographics, their psychographics and their buying behaviour. Then, think about who in your audience resonates with your new category, or grouping that you’ve created.

 

So, for example, if you’re separating new buyers from repeat buyers then, next, you’ll need to separate these new and repeat buyers by creating a second email subscriber list or, create a tagging system within your current email subscriber list. And once a member of your audience makes their very first purchase, your new smart system will automatically move them across to the new list or create a new tag where you’ll then start to target your messaging to them with your laser focused offers.

 

You may create multiple traffic streams for each grouping or segment. So, one stream leads to your landing page, the second grouping is then directed to another page that’s laser focused to your that group. And these pages would then have targeted offers for each segmented group.

 

THERE'S NO ONE RIGHT ANSWER!

 

So, there’s no right answer when it comes to segmenting your customers or your audience, it really is up to you!  You can continue to even further double down your focus by drilling down into to each group within your market so you can offer much better targeted content and products that snugly fit them.

 

If you’ve enjoyed my video and you’d like to work with me to learn more about your customers and escape the feast or famine trap in your business by building a consistent income, then check out how you can work with me over here. 

 

Lor Bradley

Lor Bradley. Lor wearing a black t-shirt and is standing smiling in front of a white background.

Simple Strategies To Grow Your Business