Have you ever played with Legos? My son loves playing with Legos. If you’ve ever seen a Lego toy, it comes in a box, with a book of instructions and a myriad of little tiny pieces. And, as you would imagine, there’s a strategy for successfully putting the toy together quickly and easily. The secret actually lies in grouping all the like pieces together.20130223-102514.jpg

You can say the same thing for putting together a successful and money making business. The secret lies in putting all of your like customers together into neat little tiny groups. We call these groups market segments.

In my opinion, this is perhaps the most powerful marketing tool that you can have it your disposal; the ability to group your customers into like groups so that you can deliver the same message to them and get them to connect with you and buy your product.

How do You Know Which Ones Belong Together?

The best way to figure out which ones belong together is to actually go back to a Nother childhood memory. This one comes from Sesame Street. Remember the game they used to play where they show you a series of four pictures and then they ask you Which ones belong together and which one does not fit.

You’re going to use exactly the same process in order to group your customers.

Here are a few criteria that you can use to get you started.

  • It has to be substantial — there have to be enough people in it to justify an individual group.? Having a segment of one person — simply doesn’t justify customizing all your marketing messages and efforts. So you need to have enough people in each segment to justify creating unique and customized offers for them.
  • It has to be profitable: If you can’t make money from this group — it isn’t worth the effort.
  • They are reached through your distribution channels: You have to be able to reach them using your distribution channel. So, for example, if your business is online and your products are delivered via download — then you will not be able to reach people who don’t use a computer.
  • They need to be homogenous — the same: ?They need to appreciate the same things so that they will respond to the offer you created for them.

An Easy Way to Segment Customers

Now that you know the different criteria of each customer group how to even begin to segment them?

The number one rule to remember is not to overthink it.

  • Make a list of all your customers. Sit down and make a list of all your customer — or if you have customer files, then put them all in one big file.
  • Pick and choose:?Pick up a file, look at it, think about it a little bit and simply put it in a new pile. Then pick up the next file, and ask yourself is this customer similar to the first one or is it different? Don’t over-think it. If it feels different put it in a new pile.
  • Repeat this process one file after another. When you’re finished, you’re going to end up with a series of possibly 5 to 7 piles.
  • Profile your piles.Now go to each individual pile and ask yourself what do all of these customers have in common. Use the list I gave you above and see how you might define that pile of customers around that list.

Don’t expect it to work out perfectly the first time. You are going to be arranging and rearranging those piles until they feel right.

I know that I use the words “feel right.”And you’re probably thinking “What is ‘feel right’ supposed to mean?

Well, the beauty of really powerful money making segmentation has to do with this intuitive feeling that you already know what’s really important to those customers.

This is simply one of those areas were trusting your got is a fantastic strategy. In fact, if you trust your gut and really open up and think about each group or pile that you’ve created, some very very interesting unconscious elements are going to pop-up for you. It’s inside of these unconscious elements that you’ve identified where you can really connect powerfully to your ideal customer. And get them to choose you.