How can I segment my customers to maximize my margins?
One way to improve your margin for a building product or construction service and achieve a true competitive advantage is to innovate and develop a product or service that fulfils the customer’s needs in a new and more effective way. The aim of the game is keep your costs low, yet please your customers by segmenting them and giving each group exactly what they need.
A good place to start is to conduct market research into the main issues that motivate customers into purchasing your product or service; gathering data such as a Construction NPS. Download our article about Construction NPS here.
Typically, a company could carry out telephone interviews with a robust sample from across their whole customer base. The aim should be to identify 3 or 4 customer segments, as the cost of implementing and managing any more than this starts to become problematic. These defined segments of customers can then be targeted according to their specific service needs and pricing priority.
To find out more about analysing customer sectors in the Construction and Building Products market click here.
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