Lesson 92: What’s segmentation and does it go with selling translation?

Lesson 92: What’s segmentation and does it go with selling translation?

In the previous post, I made the point that we need to be able to offer services adapted to our clients’ needs. You agreed with me on Twitter and in conversations that we had. I also mentioned that the article was the first point in understanding customer segmentation, our theme this month.

Here’s a very serious definition of segmentation for you: “The process of grouping customers in markets with some heterogeneity into smaller, more similar or homogeneous segments” Dibb et al. (2006). In other words, market segmentation is all about being able to put your customers in groups according to their shared values, features and needs.

Take a look at this video:

And this one is pretty useful, too:

This image is also a very simple explanation why we need to segment our customers:

customer segmentation translation

But how all this can help us in selling translation and marketing our services?

Increased effectiveness

We all have limited resources and budgets for marketing. With customer segmentation, you can make sure that the money and time you invest is well spent and reaches the right people. Knowing the distinct segments that your potential customers belong to helps you create a more targeted message corresponding with their needs and values.

Increased profitability

We often struggle with increasing our rates. Many of our colleagues fear that a flat increase may leave them out of work for some time, before they find better paying clients. Customer segmentation helps you separate clients with higher price inelasticity (meaning likely to pay more if you ask for more) from clients who won’t accept your increase.

Business development

Segmenting customers is very helpful when comes to prospecting and growing your customer base. It’s so much easier to concentrate on developing just one, well-defined segment, rather than just trying to “find more clients”. Clearly defined groups will also help you identify who’s also competing for their attention.

Brand development

By segmenting your clients and discovering their needs you’re much more likely to develop a brand that resonates with them.

What do you think about customer segmentation? Next week I’ll share how to segment your customers and introduce a segmentation strategy.

4 Comments

  1. Sherif , on May 23, 2014 at 10:51 Reply

    Great and condensed explanation for people in our industry. but I can not understand a point here. You wrote (Customer segmentation helps you separate clients with higher price elasticity (meaning likely to pay more if you ask for more) from clients who won’t accept your increase.) I think you meant “higher price inelasticity”, because in case the the price is elastic, if I increase my price, the client will reject it. Please check this link: http://www.investopedia.com/terms/p/priceelasticity.asp. I might be wrong ofcourse, please correct me. This is just about terms, and not the who article 🙂

  2. Silvia , on Jan 13, 2015 at 18:07 Reply

    Hi Marta
    I’ve got some problem with the audio of the videos…may you help me? Thanks in advance!

    • Marta Stelmaszak , on Jan 16, 2015 at 15:15 Reply

      I will do my best! Could you tell me what the problem is, because they play well for me, the only issue is the sound being a bit too low 😉

Leave a Comment

*