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How customer research improves market segmentation

Customer Research

Consumer research includes primary as well as secondary research. Research helps to
ensure that a retailer is offering what their customers need and not simply what is
assumed that customers need.

Market segmentation

If a retailer answers ‘everyone’ to the question: “who is your target market?”, it’s likely
that the retailer in question in not achieving the maximum profits. A company’s
resources are limited by the available budget, so it’s rational to then focus that budget
on a segment of customers that are likely to produce the greatest profits. It also include
the data collection of market research belfast.

For example, a store that sells televisions will target people who watch television.
However, they are aware that not every TV will be suitable for every person. There are
multiple product variables such as internet connection, integral DVD players, ease of use,
number of ports and so on. Different product features appeal to different groups of
people i.e. different customer segments within the television market. The store needs to
understand their customer’s needs to discover which particular TVs their customers want
to buy. If the store makes assumptions on behalf of their customers, they may make
mistakes in their decision-making processes.

Understanding Your Customers

Customer segmentation begins withresearch – for example, an analysis of current

customers. This is where market research companies can help with your marketing

process.A survey of visitors to each of your stores will find out necessary information

including needs, buying behaviour, and demographics - all key to

understandingcustomers; who your customer are, why they buy from you and not your

competitors, and more importantly, why they don’t buy from you.

Your customers can be grouped into segments to meet their needs. Segments that are
moreprobable to produce the greatestprofit should be ranked first. There is little benefit
in providinga budget for unprofitable segments. Asuitablecommunications plan can then
be established to target the most profitable segments.

If you are searching for a market research company, please contact CARD Group at
www.card-group.com.