Episode C1.005 Ability to Micro-segment Potential Markets into Niches

Introduction
Good day and hope you are looking forward to a productive week.
This week we are announcing our new community - The Community of Commerce for all insiders. Everyone who has JOINED US and become an inside we are moving off of the weebly web platform to a community site on Tribe. 

This will provide an opportunity to share information, ask questions, and gain support for starting, growing, or exiting your business.

It is our version of the Chamber of Commerce - what it could have been instead of what it has become. This community has one goal - your success as a business owner to build generational wealth for your family. That growth will create more and better jobs in your local community.

It is a stand alone (outside the control of the arbitrary large providers) platform that provides entrepreneurs and business owners a space for the free and open exchange of ideas.

As a member of IBGR's Community of Commerce you can:

1. Follow other users including the OnAir Talent and Executive Team at the station.
2. Ask and answer questions about starting, growing, and exiting the business from our OnAir team and each other.
3. Follow any member of the Community to stay abreast of their latest business insights as well as building your own following.
4. Start discussions to stimulate input from other members of the Community.
5. Create and vote in Community polls.
6. Post and comment on posts and blogs.
7. Access and share content entrepreneurs and business owners can use.

We built this beyond the reach of the 'masters of the universe' so you can speak your mind.

On a closing note, if you want to know what drives everything we do - checkout this article: from Australia (click here).

And that is just restaurants - what about everybody else?
Have a great business week.
​
Listen>Apply>Engage

Show Objectives - The Why
This show is going to help you get really clear on your niche market in a way that focuses on your ROI (return on investment) in addition to psychographics and demographics. Psychographics and demographics are nice, but what we will cover during this show will show up in your cash register. 

Key Issues - Owner Perspective:

1. Large heterogeneous market 
2. Traditional segmentation [demographics, psychographics] vs RFM [recency, frequency, monetary value], 
3. Recency - more recent a purchase the more to target promotions, 
4. More frequent the more engaged and sissified, 
5. Monetary identifies heavy purchases from light purchasers

What You Need to Know 
Let’s get clear on some definitions:

1. Heterogeneous market - Heterogeneous market is the  opposite of a homogeneous market. Heterogeneous market is a market with many variations in people, needs, wants, buying models, etc - so microsegmentation is easier. In a homogeneous market there is little variation and therefore more difficult when you are first entering into the segment.
2. Traditional segmentation [demographics, psychographics]: At its simplest, customer segmentation is the process of dividing your customers into different groups based on their data. For marketing, the goal is to group people with shared characteristics into segments in order to effectively market to each group. There are four traditional types of marketing segmentation: 

• Geographic – Where they are
• Demographic – Gender, age, income
• Psychographic – Social class, personality type
• Behavioral – How much they spend/consume, products/services they use

  3. RFM [recency, frequency, monetary value]: Recency, Frequency, Monetary (RFM) analysis uses recency, frequency and monetary based metrics to place customers into different stages of the Customer Lifecycle (Champion, Loyal Customer, At Risk, etc.). Customers are scored in a range for each metric (generally 1 – 5), based on their data. 

What You Need to Do​​ 

1. Research your theoretical ideal customer/client and ensure the data/list you purchase has information related to purchases
2. Analyze the data and assign RFM Scores
3. Determine your best niche(s) 
4. Think into ways to dominate that niche(s)
5. Set up your CRM and Accounting Software to collect and store the information so you can modify the profile of the perfect customer based on actual purchases

Shows

• Previous: Episode C1.004 Current and Future Trends in Potential Markets
• Next: Episode C1.006 Potential of Becoming 1 or 2 in Micro-segments

​written by Donna Kunde