HOW TO FRANCHISE?

An important part of knowing your customer is differentiating who’s who among your clientele. It’s called market segmentation — the process of breaking your customers down into segments that share distinct similarities.

Here are some common market segmentation terms and what they mean:

1. Geographics: Segmenting customers by regions, counties, states, countries, ZIP codes, and census tracts.
2. Demographics: Segmenting customers into groups based on aspects such as age, sex, race, religion, education, marital status, income, and household size.
3. Psychographics: Segmenting customers by lifestyle characteristics, behavioral patterns, beliefs, values, and attitudes about themselves, their families, and society.
4. Geodemographics: A combination of geographics, demographics, and psychographics. Geodemographics, also called cluster marketing or lifestyle marketing, is based on the age-old idea that birds of a feather flock together — that people who live in the same area tend to have similar backgrounds and consuming patterns. Geodemographics helps you to target your marketing efforts by pinpointing neighborhoods or geographic areas where residents share the age, income, lifestyle characteristics, and buying patterns of your prospective customers.