What Is Benefit Segmentation?
Benefit segmentation is a system that groups and classifies your target audience by the value and satisfaction they are bound to derive from your product and/or service. Benefit segmentation is often used by marketers to identify a customer who would gain more from their business. Companies would improve lead acquisitions and rake in more successes by pursuing these customers.
Why Should You Do Benefit Segmentation?
Sales Representatives find it easier to convert leads and prospective customers into fulltime customers with the aid of benefit segmentation. This is because your sales campaign would attract customers that are better suited to gain from your product and services. Your sales team would spend less time I closing deals because people these people need your goods and services the most and so would require less convincing.
Marketers and Salespersons utilize benefit segmentation to engage customers also. Your team would be able to create a more viable and compelling autonomous marketing campaign and sales pitches by bringing to the fore the key value that your business proffers. They will know how to differentiate between your product and services and others in order to make it attractive to your target audience.
Since we have gotten a glimpse of what benefit segmentation is and the reasons why you should use, let us consider some real-life examples where the benefit segmentation has helped businesses attract and convert leads to customers.
Benefit Segmentation Examples:
The mobile phone is one of the best innovations of modern technology which has become a fundamental part of human lives these days. A large percentage of people have a cell phone and some depend on it to get them through their daily activities. But your mobile phone needs might differ from that of the next person depending on who you are or your taste. Many people need mobile phones for different reasons. So one might wonder how mobile phone companies manage to meet the needs of their various needs.
Many car companies like Ford use benefit segmentation to keep different vehicles in different positions or categories. For example, there exists some difference between Ford’s advertisement for Ford Fusion and F-150 models.
The company describes the Fusion as a “sophisticated” and “cool” four-door sedan vehicle. Ford took into cognizance the fact that people who might be interested in acquiring this car will not only value its style but also considers the price and performance. The company brings this to the fore by using colorful, eye-catching designs to compliment the car’s beautiful design in its advertisement.
The market benefit segmentation of Airbnb is very interesting as it has to take into consideration two major audiences: The Hosts and the Guests. Airbnb does not only have to look for customers to book their rooms, but they must also be keen to attract a welcoming host with desirable living spaces. This made the company perform benefit segmentation to make ads that are appealing to both the hosts and the guests.
Nike proffers a great number of sporting solutions to a variety of target audiences. So benefit segmentation needs to be used to develop different marketing campaigns that would better suit each and every group of customers. A notable example we can take from Nike is the ads which feature Serena Williams, a top tennis Superstar.
Hulu has successfully positioned itself as a viable alternative to cable Television amidst the “cord-cutting” phenomenon. There has been a wonderful appraisal of the convenience and efficiency of using the system by its users who mostly do not want to spend money on TV channels they most likely will never watch. This has led the company to create an ad campaign that explains how their users can cut down cost and save some money while keeping access to their favorite content.