Types of Market Segmentation 1) Demographic segmentation

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Home » Marketing management articles » 4 types of Market segmentation and how to segment with them?

4 types of Market segmentation and how to segment with them?

February 1, 2020 By Hitesh Bhasin

Tagged With: Marketing management articles

There are 4 types of Market segmentation which are most commonly used. Market segmentation is one of the oldest marketing trick in the books. With the customer population and preferences becoming more wider, and the competitive options becoming more available, market segmentation has become critical in any business or marketing plan. In fact, people launch products keeping the market segmentation in mind.

There are three ways to classify what the customer wants. It is known as needs, wants and demands. However, to decide the needs, wants and demands, you need to carry out segmentation irst. And in segmentation, the irst step is to determine which type of customer will prefer your products. Accordingly, that customer will be from your targeted segment. Who would want your product and whether it falls in the needs segment, the wants segment or the demands segment. Once you decide the product you are going to make, then you decide on the market segmentation.

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There are 4 diﬀerent types of market segmentation and all of them vary in their implementation in the real world. Let us discuss each of them in detail.

Types of Market Segmentation 1) Demographic segmentation

Demographic segmentation is one of the simplest and most widest type of market segmentation used. Most companies use it to get the right population in using their products. Segmentation generally divides a population based on variables. Thus demographic segmentation too has its own variables such as Age, gender, family size, income, occupation, religion, race and nationality. To read more, click on this link for demographic segmentation.

Demographic segmentation can be seen applied in the automobile market. The automobile market has diﬀerent price brackets in which automobiles are manufactured. For example – Maruti has the low price bracket and therefore manufactures people driven cars. Audi and BMW have the high price bracket so it targets high end buyers. Thus in this case, the segmentation is being done on the basis of earnings which is a part of demography. Similarly, Age, life cycle stages, gender, income etc can be used for demographic type of market segmentation.

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2) Behavioral segmentation

This type of market segmentation divides the population on the basis of their behavior, usage and decision making pattern. For example – young people will always prefer Dove as a soap, whereas sports enthusiast will use Lifebuoy. This is an example of behavior based segmentation. Based on the behavior of an individual, the product is marketed.

This type of market segmentation is in boom especially in the smart phone market. For example – Blackberry was launched for users who were business people, Samsung was launched for users who like android and like various applications for a free price, and Apple was launched for the premium customers who want to be a part of a unique and popular niche.

Another example of behavioral segmentation is marketing during festivals. Say on christmas, the buying patterns will be completely diﬀerent as compared to buying patterns on normal days. Thus, the usage segmentation is also a type of behavioral segmentation. To read more in depth about behavioral segmentation, do read this article.

3) Psychographic segmentation

Psychographic segmentation is one which uses lifestyle of people, their activities, interests as well as opinions to de ine a market segment. Psychographic segmentation is quite similar to behavioral segmentation. But psychographic segmentation also

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takes the psychological aspects of consumer buying behavior into accounts. These psychological aspects may be consumers lifestyle, his social standing as well as his AIO. Do refer more to Activities, interests and opinions.

Application of psychographic segmentation can be seen all across nowadays. For example – Zara markets itself on the basis of lifestyle, where customers who want the latest and diﬀerential clothing can visit the Zara stores. Similarly Arrow markets itself to the premium o ice lifestyle where probably your bosses and super bosses shop for the sharp clothing. Thus, this type of segmentation is mainly based on lifestyle or AIO.

Read in detail – Psychographic segmentation.

4) Geographic segmentation

This type of market segmentation divides people on the basis of geography. Your potential customers will have diﬀerent needs based on the geography they are located in. In the article on geographic segmentation, i have explained how people who are located in non municipal areas might require a RO water puri ier whereas those located in municipal areas might need UV based puri iers. Thus, the need can vary on the basis of geography.

Similarly in cold countries, the same company might be marketing for heaters wheresa in hot countries, the same company might be targeting air conditioners. Thus, many companies use geographic segmentation as a basis for market segmentation.

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This type of segmentation is the easiest but it was actually used in the last decade where the industries were new and the reach was less. Today, the reach is high but still geographic segmentation principles are used when you are expanding the business in more local areas as well as international territories.

Read in detail – Geographic segmentation | Geographical pricing.

Thus, the above are the 4 main types of market segmentation. Usage based market segmentation, Bene it segmentation, price based market segmentation, all these diﬀerent types of segmentation are a derivative of the above 4 types only.

So what type of market segmentation can you use for business and how would you like to implement segmentation?

Comments

Richa says

Vei nyc examples Reply

Rashi Rehana says

Thanks sir it’s veryhelp full for me so thanku soo much Reply

Gobliss says

Well detailed.

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Reply

Anonymous says

This is a great article! It helped me so much in iguring out how exactly segmentation works! Thank you!

Reply

Hitesh Bhasin says

My pleasure and glad to be of help :) Reply

alima says

Gud

alima says

Sir plz write more with easy language and take the basi examples

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Vladimir manjoro says

Indeed I really appreciate that too thank you so much Reply

thenmozhi says

THANK YOU VERY MUCH IT IS HELPS TO MY STUDIES Reply

nowmozhi says

your welcome Reply

Timitosin says

Thanks you help me in making my study become easy,infact you help in great way.

Reply

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budah says

I leik is article Reply

Timmy Johnny Joe Chad Brad the 4th says

* I like this article

use proper grammar please..and thank you :)

Nurul says

What about Zurich Insurance. What market segmentation it is?

Reply

Hitesh Bhasin says

Dear Nurul, Zurich insurance clearly has a mass market Demographic

segmentation. This is because the company deals in general insurance, life insurance and several other types of insurance. As we know, life insurance can be applicable to college going students to people in their mid life.

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Hence, zurich insurance uses Demographic segmentation to target the right people.

Reply

Nurul says

Ohh i see. Thank you very much for your explanation. It is very helpful.

Anthony Perrone says

Hitesh

How does Samsung segment its Smart Tvs, speci ically in Australia?

Ada says

Hi, what possible data analysis can be done with this type of market

segmentation? I need to show cost saving and revenue generation that can happen from proper segmentation

Reply

Hitesh Bhasin says

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Dear Ada, Quote simply, segmentation data is important to know the scope of business that you can do with a particular segment. For example – if you were going to oﬀer salt as a product, then there is no segment possible.

Everyone needs salt or sugar. But still, there are nowadays sugar free sugar targeted towards diabetic patients. So segmentation data can help you increase revenue.

Cost saving part comes when you dont want to waste revenue targeting a particular segment. For toys, the segment is children yet the target is parents because the children are in luencers and the parents are decision makers. Thus, by only targeting children they are wasting money. They need to create a brand in front of parents also.

Reply

kor says

may i ask when you writing this article?

george says

even the market of salt and sugar can be segment as well interms of amount each customer can aﬀord to buy,

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Martha Asheeke says

Was wondering when was this article this article published. I’d like to use it as a reference. Very insightful.

Reply

Joe Michaels says

Can you please clarify the statement, “And in segmentation, the irst step is to de ine your target audience?” Isn’t the *point* of segmentation to de ine one’s target audience? Please explain.

Reply

Hitesh Bhasin says

yes you are right. I have changed the statement.

Reply

ayo says

What type of market segmentation applies to the beverage industry since non alcoholic drinks target everyone but alcoholic can be broken down to mostly men.

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Reply

Hitesh Bhasin says

Alcohol industry uses demographic segmentation. On the basis of gender, we have diﬀerentiation. Alcoholic beverages like Vodka, Breezers are

targeted towards women whereas Beer and Rum is mainly targeted to men.

Alcoholic drink is targeted towards men mainly because men are proven to have a better capacity / freedom when it comes to drinking alcohol. If the consumption is higher, sale will be higher too. Hence alcohol industry

targets men. But otherwise, there are products targeted towards women as well. So i would say alcoholic or non alcoholic brands both use

demographic segmentation.

Reply

ayo says

Hello, please I have an assignment on market segmentation in the beverage industry and i’m a little confused as to how to go about the report. Do you have any write up on this and if no, can you be of help? Thanks

Reply

Hitesh Bhasin says

You will many reports and formats on Scribd. I have not started anything on report writing yet. But am planning soon to start a template section.

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Reply

Gabriel says

How do I know my product is an evoke set? Thanks.

Reply

Tania says

Hi, nice article.

What kind of segmentation is prevalent in the healthcare industry?Mass demographic?If so, how would a healthcare startup target individuals to increase revenue?Will having diﬀerent products for diﬀerent age groups be a better idea than having a common product for all?

Reply

manohara says

Hey Hitesh, Psychographic segmentation is the most di icult one for my team, maybe for everyone. Because this is the era where people do micro-searches while having a cup of coﬀee or while waiting for the tra ic signal to turn green etc. It is really challenging to serve those people with the right content since the interest changes so dramatically.

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Reply

Hitesh Bhasin says

Yes. Very true. And that is why companies like google step forward with their content based analysis. Ahrefs and many other sites are up for content analysis so that they understand what users want from internet searches. These can help you segment the market.

Reply

giriraja says

can u clarify the diﬀerence between bases of market segmentation and types of market segmentation

Reply

Hitesh Bhasin says

They are one and the same. The base of geographic segmentation is geography and the type is geographic segmentation. So bases and types are synonyms in this case.

Reply

sai Punai says

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What type of market segmentation base applies to low cost airlines operating domestically?

sai Punai says

What type of market segmentation base applies to low cost airlines operating domestically?

Reply

John says

Hi, That was a nice one.

So would market segments mean the same thing as market segmentation? If not, what’s the diﬀerence?

Reply

serendipity says

hi what about pldt, what type of market segmentation they used?thankyou in advance :)

Reply

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George says

Is any geographical Zara’s market segmantation?

Reply

Emmanuel Ayeni says

hey please what kind of segmentation does a mobile data provider use? (that is a telecommunications company)

Reply

Hitesh Bhasin says

Demographic segmentation. Because youngsters are bound to consumer more data then Adults. Similarly they have to consider the budget of Post paid vs prepaid consumers and how likely are they to prefer the company over competitors.

Reply

ndapandula asino says

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nice article

targeting a luent customers with luxurious goods is an example of which segmentation

Reply

Kaopener says

That’s helpng me a lot-anx Reply

Nina says

hi, nice work. How would a company producing a diet chocolate bar segment and create a target market?

Reply

Nitish Maskey says

A new telecom is entering into the market with two existing giant players. So, what would be the best market penetration strategy for new

telecommunication company? How can they build a strong brand image and the best segmentation strategy to penetrate the market? All in all, what would be the best suited marketing and branding strategy they can adapt to?

Reply

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Beatrice says

Hi, pls what segmentation method can you suggest for a small entrepreneur starting up his own business of selling T. Shirts and justify why you suggest that method. Please I really need your help its an assignment. Thanks

Reply

Hitesh Bhasin says

I would suggest demographic segmentation. T-shirts can be many types.

The really cute types for children. The rock type for teens. The one liner types for college crowd etc etc. So you need to know which type of T-shirt is targeting whom. Besides this, you can put in geographic segmentation as well. Because of E-commerce, you can sell your T-shirts far and wide.

you might be able to sell it in bulk to dealers and distributors also. So a geographic segmentation will help you decide your distribution strategy as well. And once you know the geographies you are targeting, you will have more demographic data.

Reply

beven mujiwa says

Thanks it really helps me in my studies Reply

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Abdullahi Dahiru says

How can a person apply a market segmentation in his daily life.?

Reply

segar muniandy says

Hi Hitesh Bhasin. Could you explain what is the most important changes in our society that most likely will aﬀect the segmentation variables in the future?

Reply

Hitesh Bhasin says

I think the digital life that we are leading will aﬀect the segmentation variables. The core principles might remain the same. Example, browsing in itself is a behavioral type of segmentation. You might have an app for people who browse a lot and this may be called behavioral segmentation.

However, there may be speci ic and situational type of segmentation which might be used. Read my article on E-commerce segmentation.

Reply

jane says

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hi

Interesting article and responses. in the B2B concept supplying tyres, what segmentation method can one use?

Kind Regards Reply

Hitesh Bhasin says

Supply of tires will use geographic segmentation. Because transportation is a major cost in distribution. So you can only target segments where you can reach i.e geographically. Example – If you have a warehouse in City A and there is no mode of transportation to city B, then you cannot target the City B segment. So this ways, geographic segmentation can be applied in any B2B industry.

Reply

Shapil Kelvin says

Hi Hitesh How Can I Go With Cosmetics In Segmenting The Market Especially In Nivea Oil

Reply

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kevo says

A good article. thank you !!

Reply

Elena Zakharova says

Good Morning! I have one question, what bases you suggest that could marketers should use to segment the coﬀee market?

Thank you in advance Br, Elena

Reply

Hitesh Bhasin says

As coﬀee is generally a Mass product, it will use a combination of Demographic and Geographic segmentation. But geographic will be

higher because the production of coﬀee and its sourcing plays a major role in the geographies that you can expand in.

Reply

AGABA ALLAN says

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Thnk u so much this has widened my knowledge as a tourism student here in Uganda under the course unit is marketing and advertising thank u so much.

Reply

Hitesh Bhasin says

You are welcome and i am glad i could be of help :) Reply

Hassan says

HI Hitesh,

Indeed many thanks for your articles, they are real supportive. I would like your adivise for a SOLAR PV company wanting to invest in East africa, what market segments will be appropriate for the company. Thanks!!!

Reply

Hitesh Bhasin says

Hii. This is a targeted segment and Differentiated segmentation will come of use. U need to study the complete market and then create your offerings which are different from others. At the same time, you need to market to a

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selected crowd which has NEED of the solar products. If u are marketing in Urban area where there is no need of Solar power then u r wasting money.

Reply

Gamdo Victor says

Hi. Hitesh,

What method of Market segmentation do i need to apply for ICT Organization that has; Computer Institute , Graphic design studio/ Printing press and

software maintenance/ Network installation and maintenance. thanks Reply.

Reply

amaka says

what are the market segmentation in poultry please Reply

ADAOBI says

Educating! Please what type of market segmentation do I use for perfume products in this jet age? Thanks!

Reply

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RITAH NANTUME says

HI HITESH,

Thanks for everything.

I work in a grain and milling company in one of the African Countries.What type of market segment can I use to market maize lour,maize grains,beans,sorghum and other grains in large quantities?

Reply

Hitesh Bhasin says

Hii. These products are mass marketing products so u can use

demographic segmentation or geographic segmentation. If u speak about

“Large quantities” then u have to look at geographic segmentation. How far can u distribute these large quantities. Accordingly u will be able to reach ur correct market.

Reply

Nura othman says

Please,what type market segmentation will I used if to start Tire repair services Center?

Reply

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Gennaro says

Great guide! How would you de ine the segmentation you do with tools like Google ads and Facebook ads? I guess it falls under all the main segmentation factors, from demographics to psychographics. What do you think?

Reply

Hitesh Bhasin says

If you ask me, they are more demographic in nature. Because they target on the basis of 1) Geography and 2) Age. A bit of behavioral segmentation is also involved because you can target people based on what they like!

Keywords like marketing or branding can be used to target people. And if their online behavior shows the user liking anything about marketing or branding, then these users will be targeted by the ad platform. So yes – google ads and facebook ads are a combination of demographic and behavioral / psychographics.

Reply

Dwwilliam says

Thank,so much,i didn’t know b4 Reply

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Sonam Naidu says

Using the following list of products, identify the potential market segments of each product based on demographics, psychographic, and behavioral

diﬀerences. Prepare a brief report and explain the segmentation variables associated with each example.

a.A high-end automatic espresso maker for the home b.Soft drinks

c.SAT/ACT Tutoring Services

d.Aﬀordable Wireless headphones

f. Use the industry/product that of your choice can you please help me with this question Reply

Gemechu says

Thank you Reply

Vladimir manjoro says

Thank you so much that was really amazing article Reply

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benjamin rigby says

“More wider”

Reply

Muhammad Rizwan says

Kindly tell me any product which is not available in world any idea plzz Reply

Physique says

I need help the question is ..using ive stages in the design of products and services,come up with a new product that sunburst bakery could sell

Reply

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you can identify the way customers make these decisions, you can search for those key terms they might be verifying before buying.

. Stay in touch. In B2B, it’s great to pay attention to your key clients or customers.

How can you listen to all this in a meaningful way?

There are quite a few tools out there focused on social media monitoring of all kinds. We use Hootsuite, and I personally like the various levels they offer for growing companies and teams.

Most of the social media monitoring tools also allow you to set up lists and saved searches which really help cut through the crowded conversations. But starting off with a few good alerts to help monitor what’s important can be a great way to start listening effectively.

Rumor has it the old standby, Google Alerts, might be on its way out. Lately I’ve been using TalkWalker for alerts on everything from our company name to key clients. It is a great way to listen through the noise.

The most important thing is to simply listen.

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Don’t just listen to respond to the negative Nellies on Twitter or to rush to your legal team

because of an “incident” on your corporate Facebook wall. Consider listening as ways to plug in to the real lives of your customers and enrich them because of that understanding.

Grab your team right now and brainstorm about all the things you could monitor. It’s amazing how long the list can get. Get creative and listen to understand.

Image credits: garryknight, hang_in_there via Creative Commons

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Jeannie Walters is the CEO/Founder of Experience Investigators™ by

360Connext, a global Customer Experience consulting ﬁrm. She has 20 years of experience helping companies improve loyalty and retention, employee engagement, and overall customer experience. Jeannie is a Certiﬁed Customer Experience Professional (CCXP,) a charter member of the Customer Experience Professionals Association (CXPA,) a Professional Member of the National Speakers Association, a Forbes Coaches Council Member, a C-Suite Network Advisor, a LinkedIn Learning and Lynda.com instructor, and a TEDx speaker. Learn more here.

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9 Practical Methods for Measuring Service Quality

We like to measure stuff. How long we can hold our breath, our weight before and after a workout, the IQ of our kids... Through

measurement we can compare, aim, and improve.

But some things are less straightforward to measure. Like service quality.

But measuring service quality is absolutely crucial.

Although it's not the same as customer satisfaction

— which has its own methods (/blog/2014/06/24/6- proven-methods-for-measuring-your-customer- satisfaction) — there’s a strong and positive correlation between the two (http://www.diva- portal.org/smash/get/diva2:448657/fulltext02) .

April 26, 2016 Pascal

(/blog/measuring-service-quality)

Customer Service

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ity)

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By using this website, you agree to our privacy policy. (terms#privacy- policy)

x

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Here are 9 practical techniques and metrics for measuring your service quality.

This is the most common method for measuring the subjective elements of service quality. Through a survey, you ask your customers to rate the delivered service compared to their expectations.

Its questions cover what SERVQUAL

(https://en.wikipedia.org/wiki/SERVQUAL) claims are the 5 elements of service quality

(http://study.com/academy/lesson/service-quality- definition-dimensions.html) : RATER.

Reliability - the ability to deliver the promised service in a consistent and accurate manner.

Assurance - the knowledge level and politeness of the employees and to what extend they create trust and confidence.

Tangibles - the appearance; of e.g. the building, website, equipment and employees.

Empathy - to what extend the employees care and give individual attention.

Responsiveness - how willing the employees are to offer a speedy service.

You can find an example of a SERVQUAL questionnaire here

(https://www.scribd.com/doc/49857127/Servqual-

SERVQUAL

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This is a popular technique used for retail stores, hotels, and restaurants, but works for any other service as well. It consists of hiring an "undercover customer" to test your service quality – or putting on a fake moustache and going yourself, of course.

Mystery Shopping

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Performance in any field is guided by a few core principles. Here are the ones governing the quality of customer service.

First principle thinking (/blog/customer-service- principles)

The 8 Core Principles of Good Customer Service

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The undercover agent then assesses the service based on a number of criteria, for example those provided by SERVQUAL. This offers more insights than simply observing how your employees work.

Which will probably be outstanding — as long as their boss is around.

This is the practice of asking customers to rate the service right after it’s been delivered.

With Userlike’s live chat (/) , for example, you can set the chat window to change into a service rating view once it closes. The customers make their rating, perhaps share some explanatory feedback, and close the chat.

Post Service Rating

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Help Scout (https://www.helpscout.net/) , where you can rate the service response from your email inbox.

It’s also done in phone support. The service rep asks whether you’re satisfied with her service delivery, or you’re asked to stay on the line to complete an automatic survey. The latter version is so annoying, though, that it kind of destroys the entire service experience.

Different scales can be used for the post service rating. Many make use of a number rating from 1 – 10. There’s possible ambiguity here, though, because cultures differ in how they rate their experiences (http://www.jstor.org/stable/40063010?

seq=1#page_scan_tab_contents) .

People from individualistic cultures, for example, tend to choose the extreme sides of the scale much more often than those from collectivistic cultures. In line with stereotypes, Americans are more likely to rate a service as “amazing” or "terrible," while the Japanese will hardly ever go beyond “fine” or "not so good." It's important to be aware of when you have an international audience.

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Simpler scales are more robust to cultural

differences and more suited for capturing service quality. Customers don’t generally make a sophisticated estimation of service quality.

“Was it a 7 or an 8...? Well... I did get my answer quickly... On the other hand, the service agent did sound a bit hurried…” No. They think the service was “Fine,” “Great!” or “Crap!”

That’s why at Userlike we make use of a 5-star system in our live chat rating, why Help Scout makes use of three options (great – okay – not good), and the US government

(https://www.washingtonpost.com/news/federal- eye/wp/2015/08/19/happy-or-unhappy-with-your- tsa-experience-tap-a-button-to-let-the-government- know-we-said-tap/) makes use of four smileys (angry – disappointed – fine – great). Easy does it.

Follow-Up Survey

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your service quality through an email survey – for example via Google Forms

(https://www.google.com/forms/about/) . It has a couple advantages over the post-service rating.

For one, it gives your customer the time and space for more detailed responses. You can send a

SERVQUAL type of survey, with multiple questions instead of one. That’d be terribly annoying in a post- service rating.

It also provides a more holistic overview of your service. Instead of a case-by-case assessment, the follow-up survey measures your customers’ overall opinion of your service.

It’s also a useful technique if you didn’t have the post service rating in place yet and want a quick overview of the state of your service quality.

But there are plenty of downsides as well. Such as the fact that the average inbox already looks more like a jungle than a French garden. Nobody’s waiting for more emails – especially those that demand your time.

With a follow-up survey, the service experience will also be less fresh. Your customers might have forgotten about it entirely, or they could confuse it with another experience.

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And last but not least: To send an email survey, you must first know their emails.

Example of a follow-up survey.

(http://www.questionpro.com/survey- templates/service-quality-evaluation/)

With an in-app survey, the questions are asked while the visitor is on the website or in the app, instead of after the service or via email. It can be one simple question – e.g. "how would you rate our service" – or it could be a couple of questions.

Convenience and relevance are the main advantages.

SurveyMonkey offers some great tools

(https://www.surveymonkey.com/mp/website- feedback-survey-template/) for implementing something like this on your website. Also check out hotjar's guide on website feedback

(https://www.hotjar.com/blog/website-feedback) .

In-App Survey

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This metric was proposed in an influential Harvard Business Review (https://hbr.org/2010/07/stop- trying-to-delight-your-customers) article. In it, they argue that while many companies aim to "delight"

the customer – to exceed service expectations – it’s more likely for a customer to punish companies for bad service than it is for them to reward companies for good service .

While the costs of exceeding service expectations are high, they show that the payoffs are marginal.

Instead of delighting our customers, so the authors argue, we should make it as easy as possible for them to have their problems solved. That’s what they found had the biggest positive impact on the

customer experience

(https://www.userlike.com/en/blog/2016/04/15/improvin customer-experience) , and what they propose

measuring.

Customer E ort Score (CES)

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Don’t ask: “How satisfied are you with this service?” – its answer could be distorted by many factors, such as politeness. Ask: “How much effort did it take you to have your questioned answered?”

The lower the score, the better. CEB found (https://www.cebglobal.com/blogs/unveiling-the- new-and-improved-customer-effort-score/) that 96%

of the customers with a high effort score were less loyal in the future, compared to only 9% of those with low effort scores.

This method has been gaining momentum with the rise of social media. For many people, social media serve as an outlet. A place where they can unleash their frustrations and be heard.

And because of that, they are the perfect place to hear the unfiltered opinions of your customers – if you have the right tools. Facebook and Twitter are Test Userlike for free and chat with your customers on your website, Facebook Messenger, and

Telegram.

Read more (/landing/chat-system-website)

Looking for better customer relationships?

Social Media Monitoring

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TripAdvisor or Yelp can be very relevant. Buffer suggests to ask your social media followers

(https://blog.bufferapp.com/10-customer-experience- metrics-every-successful-company-tracks) for feedback on your service quality.

screenshot of mention website

Two great tools to track who’s talking about you are Mention (https://mention.com/en/) and Google Alerts (https://www.google.com/alerts/) .

With this qualitative approach you read or listen to your respectively written or recorded service records. You’ll definitely want to go through the documentation of low-rated service deliveries, but it can also be interesting to read through the

documentation of service agents that always rank high. What are they doing better than the rest?

The hurdle with the method isn’t in the analysis, but in the documentation. For live chat and email support it’s rather easy, but for phone support it requires an annoying voice at the start of the call:

“This call could be recorded for quality measurement.”

Documentation Analysis

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These stats deliver the objective, quantitative analysis of your service. These metrics aren’t enough to judge the quality of your service by themselves, but they play a crucial role in showing you the areas you should improve in.

Volume per channel. This

(https://blog.kissmetrics.com/customer-service- analytics/) tracks the amount of inquiries per channel. When combined with other metrics, like those covering efficiency or customer satisfaction, it allows you to decide which channels to promote or cut down.

First response time. This metric tracks how quickly a customer receives a response on her inquiry. This doesn’t mean their issue are solved, but it’s the first sign of life – notifying them that they’ve been heard.

Response time. This is the total average of time between responses. So let’s say your email ticket was resolved with 4 responses, with respective response times of 10, 20, 5, and 7 minutes. Your response time is 10.5 minutes. Concerning reply times

(https://www.groovehq.com/support/customer- service-metrics) , most people reaching out via email expect a response within 24 hours; for social channels it’s 60 minutes. Phone and live chat require an immediate response, under two minutes.

First contact resolution ratio. Divide the number of issues that's resolved through a single response by the number that required more responses.

Objective Service Metrics

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(https://www.salesforce.com/assets/pdf/misc/FiveImper showed that first contact resolutions are an

important customer satisfaction factor for 73% of customers.

Replies per ticket. This shows how many replies your service team needs on average to close a ticket.

It’s a measure of efficiency and customer effort.

Backlog Inflow/Outflow. This is the number of cases submitted compared to the number of cases closed. A growing number indicates that you’ll have to expand your service team.

Customer Success Ratio. A good service doesn’t mean your customers always finds what they want.

But keeping track of the number that found what they looked for versus those that didn’t, can show whether your customers have the right ideas about your offerings.

"Handovers" per issue. This tracks how many different service reps are involved per issue.

Especially in phone support, where repeating the issue is necessary, customers hate handovers. HBR (https://hbr.org/2010/07/stop-trying-to-delight-your- customers) identified it as one of the four most common service complaints.

Things Gone Wrong. The number of

complaints/failures per customer inquiry. It helps you identify products, departments or service agents that need some "fixing."

Instant Service/Queueing Ratio. Nobody likes to wait. Instant service is the best service. This metric keeps track of the ratio of customers that were

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served instantly versus those that had to wait. The higher the ratio, the better your service.

Average Queueing Waiting Time. The average time that queued customers have to wait to be served.

Queueing Hang-ups. How many customers quit the queueing process. These count as a lost service opportunity.

Problem Resolution Time. The average time before an issue is resolved.

Minutes Spent Per Call. This can give you insight on who are your most efficient operators.

Find more service metrics here

(https://www.groovehq.com/support/customer- service-metrics) .

Some of these measures are also financial metrics, such as the minutes spent per call and number of handovers. You can use them to calculate your service costs per service contact. Winning the award for the world’s best service won’t get you anywhere if the costs eat up your profits.

Some service tools keep track of these sort of metrics automatically, like Talkdesk

(https://www.talkdesk.com/integrations/userlike/) for phone and Userlike (/) for live chat support. If you make use of communication tools that aren’t dedicated to service, tracking them will be a bit more work.

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methods and metrics: beware of averages, they will deceive you . If your dentist delivers a great service 90% of the time, but has a habit of binge drinking and pulling out the wrong teeth the rest of the time, you won’t stick around long.

A more realistic image shapes up if you keep track of the outliers and standard deviation as well.

Measure your service, aim for a high average, and improve by diminishing the outliers.

Also check out " The 6 Customer Service KPIs You Should Be Tracking

(https://www.userlike.com/en/blog/customer-service- kpi) ."

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Market Segmentation – Definition, Bases, Types & Examples

BY ARIEEZ DUTTA · LAST UPDATED ON NOVEMBER 7TH, 2019,

Market segmentation is one of the most e cient tools for marketers to cater to their target group. It makes it easier for them to personalize their campaigns, focus on what’s necessary, and to group similar consumers to target a speci c audience in a cost-effective manner. Market segmentation is being used by marketers since the late 1900s. Simple though it may be, it is of vital use to forming any marketing plan.

What is Market Segmentation?

Market Segmentation is a process of dividing the market of potential customers into different groups and segments on the basis of certain characteristics. The member of these . 120

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usually have one or more than one aspect common among them.

There are many reasons as to why market segmentation is done. One of the major reasons marketers segment market is because they can create a custom marketing mix for each segment and cater them accordingly.

The concept of market segmentation was coined by Wendell R. Smith who in his article

“Product Differentiation and Market Segmentation as Alternative Marketing Strategies” observed “many examples of segmentation” in 1956. Present-day market segmentation exists basically to solve one major problem of marketers; more conversions. More conversion is possible through personalized marketing campaigns which require marketers to segment market and draft better product and communication strategies according to the needs of the segment.

Bases of Market Segmentation

Segmenting is dividing a group into subgroups according to some set ‘basis’. These bases range from age, gender, etc. to psychographic factors like attitude, interest, values, etc.

Gender

Gender is one of the most simple yet important bases of market segmentation. The interests, needs and wants of males and females differ at many levels. Thus, marketers focus on different marketing and communication strategies for both. This type of segmentation is usually seen in the case of cosmetics, clothing, and jewellery industry, etc.

Age group

Segmenting market according to the age group of the audience is a great strategy for

personalized marketing. Most of the products in the market are not universal to be used by all the age groups. Hence, by segmenting the market according to the target age group, marketers create better marketing and communication strategies and get better conversion rates.

Types of Market Segmentation 1) Demographic segmentation

4 types of Market segmentation and how to segment with them?

Types of Market Segmentation 1) Demographic segmentation

2) Behavioral segmentation

3) Psychographic segmentation

4) Geographic segmentation

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