In business, it is important to conduct a market segmentation analysis. Breaking your target customers into segments can simplify your marketing endeavors and offer a tremendous amount of valuable data and insights to businesses. Some major examples of segmentation are demographic, behavioral, geographic, psychographic, value, firmographic (B2B), generational, life-stage, and seasonal.
Market segmentation analysis for the purpose of research studies in India pertains to studying the product/content buying and usage behavior of the Indian consumer and customer in a segmented manner. As just pointed out, such a study could pertain to either product usage or content consumption experience of the Indian consumer.
What is Market segmentation Analysis?
Market segmentation is the process of classifying your target customers into groups based on common factors. In B2C markets, generally, segmentation is done with the help of factors such as gender, age, income levels, etc. In B2B market research, segmentation is done based on factors such as region (North/ South/ East/ West) or industry types (BFSI/ Retail/ ICT/ Infrastructure, etc.) or type of prospect (Hot/ Cold).
Here are the top 5 reasons why market segmentation is important for consumer, product, service, content, brand, or market research studies in India:
Getting to know the purchase/usage habits, preferences, patterns, and tastes of the segmented consumers, and the distinctions therein, help businesses of all sorts to map the customer journey in a 360-degree and end-to-end manner. Businesses, then, could use the insights gathered to boost customer engagement, loyalty, and repeat purchase behavior. Moreover, the business brand too picks up as a result, and the top-line numbers (revenue and sales) rise as a result, while bottom-line numbers, including different costs, stand minimized. A well-segmented customer and consumer profile also means that your business optimizes the service and the product according to their preferences.
2. Market benefits for businesses- Helps in Up sell and Cross sell
A well-performed market research based on consumer segmentation lets businesses increase their pie of the market share, tap deeper into the existing markets and the associated target audience, and discover newer markets for the brand, the products, and the services. What it also means is a plethora of business opportunities generated for the existing set of products and services in the form of up-selling, cross-selling, and more. With segmentation-based research in India, your business stands a much better chance of emerging as a leader in multiple existing markets, You also build newer customers and the accompanying business relationships from your existing target audience, and realize how the potential to bring delight to your customers is virtually limitless. Last but not the least, you find an entirely new set of customers for your existing product and service suite.
3. Improved focus on brand and business- Custom Marketing & Communication
Knowing the needs, wants, desires, aspirations, and pain points of your existing customers and target audiences lets you improve and focus better and quicker on your business and product brands. As a result, your products are more likely to be successful and less likely to fail under any given situation. Also, you get to personalize your marketing and communication strategies according to the customer insights you’ve gathered out of your segmentation-based research in India. A diverse country as it is, India would give you ample opportunities to segment your existing customers and target audience in ways more than you can even imagine. The scope of segmentation in India is perhaps more than any other region in the world. Every individual over here carries some uniqueness, as also some similarities with others, which allow businesses to segment them in one or more fashions.
4. Product and service-level success- Reduced chances of product failures
Developing better, more relevant, and more valuable products and services for your target audience needs you to carry a segmentation-based analysis, as also perform the accompanying country-wide research. You could break-down your Indian audience in terms of states (geographical regions), age, gender, income group, education level, purchase behaviors, usage behaviors, psychographics, value, generations, seasons, occasions, time, and more, as also a combination of one or more of these. By doing so in a serious and thoughtful manner, you only get to improve your customers’ experience of your business, brand, and product suite, as also boost your employee morale to serve the customer better, and with more empathy and understanding. You would have also improved upon your existing business, as also generated new business in the process.
5. Improved top-line, bottom-line, and Customer experience
Last but not the least, your top-line and bottom-line stands visibly impacted as a result of customer segmentation, the target audience segmentation, and the associated market research performed in India. The very business/marketing campaigns that you’d undertake from time to time to generate more leads and see greater conversions stand immensely impacted by the prior segmentation that you’d have done, as also the related market research in a country-wide manner. By studying your customers and target audience in a more intimate manner, you’d have gathered the insights necessary to gear up your business to the next level in a multi-fold, pan-function, and holistic manner. You see more sales than ever before, and your costs too stand controlled on account of the timely interventions of segmentation, profiling, and research on your part. Also, the analysis part associated with segmentation and research would be largely driven by the data that you’d gather out of your research study, and much of it would talk about your customers and their markets.
All in all, it’s more than a good idea to adopt the market segmentation analysis approach whenever you endeavor to research study your customers and target audience in India, and, for that matter, anywhere else in the world. The point is, segmentation becomes more important in the context of a market like India, that’s full of diversities and profiling variations at almost every step of segmentation and research.
We saw how and why market segmentation analysis helps businesses in India and beyond study and understand their customers and consumers in an intimate, relevant, and impactful manner. We covered how knowing the consumer’s purchase preferences and the customer’s usage habits help Indian businesses tide over the silo and the marketing communication gap that otherwise exists. We also saw how understanding the target audience better through segmentation helps businesses in India improve upon both their top-line as well as bottom-line. To sum up, market segmentation analysis is an excellent idea for researching the Indian market and the diverse consumer and customer profiles that exist in there.