NEW: Effective strategies for customer segmentation

Consumer Watch

Cresencia Marjorie Chiremba

“It is no longer enough to satisfy your customers. You must delight them.” – Philip Kotler                        

Last week I delved into the concept of customer segmentation and as I build on the idea, let’s explore deeper on this subject. In Zimbabwe’s busy and hush streets and across the vast African continent, understanding your customers isn’t just a business strategy – it is an art form.

From the vibrant streets of Harare to the savannahs of Kenya, companies are harnessing the power of segmentation to create meaningful connections. So, grab your safari hat as we manoeuvre on the actionable strategies that bridge the gap between businesses and their diverse clientele.

1. Demographic Segmentation: Know your Tribe

Demographic factors such as age, gender, location, and income play a crucial role in understanding customer behaviour. These factors matter, especially in diverse markets like Africa: For instance, MTN Group segments its customer base by age and location. Their youth-focused campaigns resonate with urban millennials, while rural areas receive targeted promotions.

On the other hand, Econet Wireless, Zimbabwe’s leading telecoms service provider tailor its data plans based on income levels. High-income users get premium packages, while budget-conscious customers receive affordable options.

2. Behaviour Segmentation: Uncover Hidden Patterns

Behavioural insights drive success

This approach focuses on how customers interact with products and services. Are they frequent buyers, occasional shoppers, or loyal brand advocates? Behavioural segmentation allows companies to customise their offerings based on user behaviour. OK Zimbabwe analyses purchase behaviour to offer personalised discounts. Frequent shoppers receive loyalty rewards, such as kitchenware, thereby encouraging repeat visits.

3. Psychographic Segmentation: Dive into Mindsets

Understanding lifestyles is key

Understanding customer’s lifestyles, values, and interests is essential. Psychographic segmentation considers factors like personality traits, hobbies, and social affiliations. Imagine a luxury travel agency tailoring vacation packages based on customers’ adventurous spirit or desire for relaxation. By tapping into psychographics, businesses can create compelling narratives that resonate with their audience. Another giant that has understood this is Netflix, allowing them to create a personalised experience for their viewers. It has a broad appeal, spanning all age groups and socio-economic levels, thus from kids’ entertainment to documentaries, rom-com, action movies, and comedy. Its personalisation system continuously gathers data on viewer behaviour clicks, watches, searches, and content choices. With each interaction, it becomes more accurate, recommending content based on individual preferences

4. Lifecycle Stage Segmentation: Nurturing Relationships

 The Customer journey matters

Customers go through distinct phases that is awareness, consideration, purchase, and loyalty. Tailoring messages to each stage is crucial. For instance, a software company might provide educational content during the awareness phase, offer a free trial during consideration, and nurture loyal customers with exclusive upgrades. Understanding the customer journey enhances engagement and conversion rates.

Old Mutual seem to have grasped this strategy. The financial services giant nurtures relationships. From financial literacy content for new investors to personalised retirement planning, they cover it all

5. Geographic Segmentation: Localise Your Flavour

Local nuances matter

Geography matters. Whether it’s local, regional, or global, location influences consumer preferences. A restaurant chain might adjust its menu offerings based on regional tastes, while an online retailer could optimise shopping options for different areas. Geographic segmentation ensures that marketing efforts align with local nuances and preferences. Zambezi Lager, Zimbabwe’s homegrown brew, is a prime example of successful geographic segmentation. It mastered this strategy by localizing branding. Zambezi Lager celebrates its roots by drawing inspiration from the iconic Victoria Falls- a natural wonder that lies on Zimbabwe’s border with Zambia. This geographical connection resonates with local consumers, creating a sense of pride and ownership. Zambezi larger also signed a strategic partnership with the 7-a-side National Rugby Team (The Cheetahs). By aligning with a local sports team, they reinforce their brand’s African identity and connect with rugby enthusiasts.

Remember, effective customer segmentation is not just about dividing customers. It is about creating meaningful connections. By combining these strategies and using data-driven insights, businesses can enhance customer experiences, boost loyalty, and drive growth.

Cresencia Marjorie Chiremba is a marketing consultant with a strong passion for customer service/experience. For comments, suggestions, and training, she can be reached at [email protected] or at +263 712 979 461, 0719 978 335, 0772 978 335