One of the keys to the success of a business is selling products according to its target market. In order for the product to be right on target, it is necessary to apply a lifestyle segmentation or lifestyle segmentation.
Apart from doing behavioral segmentation marketing, apparently this type of segmentation also needs to be done to get specific customers.
By creating a segmentation based on the audience's lifestyle patterns, of course the products being sold can target customers more specifically.
In this article, will explain what lifestyle segmentation really is and why this one thing needs to be done by companies.
Curious? Check out the summary below.
Understanding Lifestyle Segmentation
The Economic Times defines lifestyle segmentation as part of a marketing management technique in which segmentation is made from customer data needs to what they like and don't like.
Meanwhile, according to Axle Genie Data, lifestyle segmentation is the use of values, attitudes and behaviors to build target market segments.
Currently, many brands have implemented this type of segmentation because they strive to offer products that are tailored to the experience and lifestyle of their audience.
Actually, lifestyle segmentation is directly under psychographic segmentation.
This is because this type of segmentation uses psychological characteristics such as the values, desires, interests and lifestyle of the audience.
The basic principle of this type of segmentation is that the better the brand knows and understands the consumer's lifestyle, the more effective the marketing and communication process with consumers will be.
Who needs to use lifestyle segmentation?
Fit Small Business states that this type of segmentation is appropriate for various types of businesses.
However, it all depends on how strong the correlation between the lifestyle of the target audience and the products offered by the brand.
Several types of businesses that are suitable use this type of segmentation, for example, for-profit and non-profit businesses, B2B (Business to Business), and B2C (Business to Consumer).
Advantages of Implementing Lifestyle Segmentation
These are some of the advantages when companies apply this type of segmentation based on lifestyle. Here is the explanation:
1. Outperforming competitors
When a brand is able to understand the lifestyle habits and preferences of customers, it will certainly easily provide products that meet their needs.
That way customers will prefer products from these brands that are able to provide the benefits they need.
2. Increase customer loyalty
Of the many types of segmentation, it seems that lifestyle segmentation can be one of the most effective tools to increase customer loyalty or customer loyalty.
When brands always provide products or services that suit the lifestyle needs of their customers, of course they will continue to be loyal and make repeat purchases.
3. Identifying new opportunities
By knowing how the customer's lifestyle and what interests they have, of course, can help brands to find the latest opportunities.
This will certainly make it easier for brands when they want to develop a new product that can increase profits and reach the target market.
Types of Lifestyle Segmentation
Launching from The Balance Small Business, here are eight types of customer lifestyle profiles that can be used to segment your target audience.
- Interested in premium products
- Product researchers
- Famous brand users
- Luxury oriented
- Focus on product safety
That is the explanation of lifestyle segmentation, a type of segme