LONDON--(BUSINESS WIRE)--A well-known market intelligence company, Infiniti Research, has announced the completion of their recent article on 4 common retail market segmentation mistakes that you might be making. In this article, experts at Infiniti research have identified four retail market segmentation mistakes that companies often make and also suggests how to avoid them.
The approach of ‘one size fits all’ is no longer a viable option to survive in today’s exceedingly competitive marketplace. As a result, retailers are using techniques such as retail market segmentation to stay ahead of the game. However, often the lack of preparation or faults in the implementation of a retail market segmentation strategy is where companies fail, and this is just the beginning of a challenge for any retailer looking to segment their audience and better target the most valuable consumers.
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Why do retail market segmentation strategies fail?
Defining segments too broadly
Grouping customer segments too broadly is a common retail market segmentation mistake that most companies make. This will consequently make retailers fall short to a competitor that targets customers by grouping them into more narrow segments. Retailers can create narrow customer segments by analyzing their customer accounts, website visits, and transaction history.
Unclear retail market segmentation results
An effective retail market segmentation analysis should provide the company with strategic direction to move forward. Furthermore, it should also provide a clear understanding of which markets are the most viable for their business to target. If a retail market segmentation research does not meet these requirements, then it is an indicator of a failed approach.
By segmenting your customers into different, narrow subcategories, you’ll create more targeted experiences for them that result in better marketing and a better ROI from your marketing efforts. Get in touch with our experts to know how we help our clients achieve this.
Not aligning business by market segments
It is advisable for retailers to create market-focused segments and later organize them into a market-focused business model. This allows customer communications and transactions to be more targeted, consequently, making the business more streamlined. Businesses that refrain from doing so are more likely to see their retail market segmentation strategy fail.
Managing segments locally
Some businesses tend to set up their retail market segmentation strategy that applies only to their local or regional organization. Although this may work well at present, in the long run when the business grows there are chances that a more dynamic global economy will blind-side the retailer.
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About Infiniti Research
Established in 2003, Infiniti Research is a leading market intelligence company providing smart solutions to address your business challenges. Infiniti Research studies markets in more than 100 countries to help analyze competitive activity, see beyond market disruptions, and develop intelligent business strategies. To know more, visit: https://www.infinitiresearch.com/about-us
