When running a small business, it’s tempting to sell to anyone who will buy. After all, everyone can use what you offer, right? Even if that were true, few small businesses have the resources to market to everyone. A more efficient strategy is to segment your market. That way you reach the most promising customers with the right message. Here’s how to put geographic segmentation into action for your small business.
The idea behind segmentation is simple. Divide a larger market into smaller parts based on common characteristics. One way is to use demographics—grouping people based on their age, gender, income or geography (place of residence).
Where a person lives can reveal a lot. For example, suburban dwellers generally tend to be couples with children. That means they’re looking for child-centered items like daycare, family-friendly dentists, or school supplies.
If you offer these products or services, this might be an effective geographic market to target. You can customize your promotional messages to people who need what you offer. That’s a more cost-efficient use of your marketing dollars.
Geographic segmentation can be applied in a number of ways to more effectively communicate with your audience. Here are some examples used by small businesses:
Geographic segmentation helps small businesses reach the right customer with the right message. Combined with digital marketing tools like email, website analytics and social media, it can help your business spring into action.