Today's business world is characterised by a high degree of complexity and agility. This has a strong impact on production and procurement as well as on all marketing processes. In the latter area, global marketing, the customer segmentation strategy plays a crucial role. Because just as markets are changing faster and faster, consumer behaviour is also changing.

In the meantime, one can hardly find homogeneous target groups with their preferences and purchasing decisions. Through global information systems such as social media and the internet, consumers are well informed. Those who analyse consumer behaviour in a fine-grained way have important bases for decision-making. The insights gained from this are the building blocks for a long-term customer segmentation strategy - both for local markets and in a global context. Only then is it possible to distinguish short-term market changes from long-term trends - and to align one's own customer segmentation strategy accordingly.

Customer segmentation strategy is the systematic division of a company's customer base into different groups. Common characteristics such as demographics, behaviour and preferences are taken into account and included in the customer segmentation strategy. After all, if you know your target group, you can address them correctly with advertising messages.

In a global context, this customer segmentation strategy becomes even more important as it involves adapting marketing activities and product offerings to different international markets. It allows companies to optimise their resources, improve customer retention and ultimately increase profitability on a global scale. Here, we will take a deeper look at the importance and individual steps in customer segmentation.

SP_Consumer and Shopper Intelligence_Segmentation and Targeting_Header

Why is customer segmentation strategy mandatory for global success?

The need for a sound customer segmentation strategy for global success cannot be overstated. Let's take a closer look at some examples from the world of global business to illustrate:

  • Cultural sensitivity: different regions have different cultural nuances and preferences. A global company needs to tailor its marketing messages and product adaptations to resonate with each culture. For example, a fast food chain like McDonald's in India offers different menus with vegetarian options to cater to local tastes and religious eating habits.
  • Maturity of the market: The maturity of markets varies around the world. A customer segmentation strategy can help companies identify emerging markets on which to focus their expansion efforts, such as when technology giants like Apple enter the booming Chinese market. By using business development models, such as the Ansoff Matrix, promising market segments can be identified and adapted to customer behaviour.
  • Competitive analysis: in crowded global markets, understanding customer segments allows companies to identify gaps in competition. For example, a luxury fashion brand could target high-net-worth individuals in emerging markets to gain a competitive advantage. However, this requires having a specific customer segmentation strategy in place. Evaluations can be used to identify market segments that have a low level of competitive pressure. In this case, market attractiveness increases if there is a correspondingly large target group. In this case, high marketing budgets are not necessary for market entry.
  • Supply chain efficiency: Efficient supply chain management is based on understanding regional demand variations. Companies use segmentation data to optimise their inventory distribution worldwide and ensure timely delivery to customers. A market segmentation strategy also gives a clear picture of whether suppliers can respond with forward integration and now sell directly to your existing customers. Thanks to the customer segmentation strategy, you will be able to identify at an early stage which customer retention measures are necessary.

A well thought-out customer segmentation strategy ensures that companies do not take a one-size-fits-all approach, but align their efforts with the specific needs of the different global markets with their respective customer segments.

How can GfK help your business craft a customer segmentation strategy?

As a renowned market research company with a wealth of experience in various industries and world regions, GfK is a reliable partner in the development of a seamless customer segmentation strategy. Our expertise extends to traditional local companies as well as global players.

For the analysis and implementation of a long-term customer segmentation strategy, we offer comprehensive service products and individual strategic consulting. Here we present some of GfK's products to support you in creating your customer segmentation strategy.

Consumer Segmentation: GfK's Consumer Segmentation product provides comprehensive insights into the behaviour and preferences of consumers in different regions. This data is invaluable for developing tailored marketing campaigns and product offerings. Through long-term consumer surveys and the evaluation of purchasing behaviour, you have an excellent basis for decision-making.

GfK Growth Architect: GfK Growth Architect is a powerful tool that helps companies identify growth opportunities in global markets. It helps you identify the most promising customer segments and market niches for expansion. At the same time, GfK Growth Architect, together with GfK Brand Architect, helps you position your brand in different global markets. After all, the recognition value and quality promise of brands are important reasons why customers place their trust in companies today.

GfK Geo-Target Groups: GfK Geo-TargetGroups provides precise geographic insights that allow you to target specific regions and demographic groups with pinpoint accuracy. This product helps you optimise your marketing campaigns for maximum impact. This is because fine-grained demographic data gives you detailed insights into socio-demographic data of the population. The age structure, household type, household size and income class of consumers are recorded and evaluated. This gives you a comprehensive decision-making basis for the customer segmentation strategy.

The customer segmentation strategy is the linchpin for global business success. The GfK product range equips companies with the data-based information to compete in the global marketplace. With GfK as your partner, you can navigate the complexities of global customer segmentation with confidence and ensure that your strategies resonate with diverse audiences around the world.