How to use the magic of segmentation to authentically connect with customers

If you’re interested in branding for small business, you may already know how important it is to have a great understanding of who your clients are.

We’ve all had the experience of developing a product that we’re so excited about, only to have it fall flat with customers. Or how about when developing branding, a logo and website - how do we choose something that not only works for us personally, but connects with our ideal customer base?

Gaining more in-depth knowledge about our customers is critical in both of these situations.

But that process can be confusing. What information is important? Are demographics enough? And how do we organize the info so that it actually works for us and paints a clear picture that we can use?

Segmentation is a term we use in marketing and branding. And while it can sound technical, any small business owner can actually start using segmentation right away to develop offers and branding that customers will be passionate about. Segmentation is how we begin to understand our customers in an organized way and build offers and branding that respond to their needs.

The layers of customer segmentation

We know our customers aren’t simple stereotypes — they have layers!

There’s what we see at the surface, like age, gender, socioeconomic status, ethnicity and so on.

And there’s everything people do — like go to work, improve their health, eat out, and celebrate holidays and special occasions.

But below these obvious traits and behaviors are a whole world of hidden motivations and emotions.

The surface level: Demographics

As small business owners, we have a good idea of who our customers are. Maybe they’re primarily women, homeowners, pet owners, Millennials, or people who live in our city, region or state… the categories go on and on.

For example, my client Tompkins Vet serves owners of dogs and cats in Freeville, New York.

Other B2B businesses and nonprofits need to connect to certain types of institutional decision makers — people in other businesses or nonprofits. Like my client Maine Outdoor School, whose branding needed to connect with K-12 administrators and teachers to offer outdoor programs that meet educational standards.

When thinking about your customer demographics, make sure to keep an open mind.

Demographics are just one piece of the picture - and by themselves, they don’t tell us much about how to connect with a customer. At worst, they can become a stereotypes that limits what we think is possible for a customer, or leads to the development of patronizing, inauthentic messaging.

These categories of people are the start of customer segmentation - but there’s more to it. And it’s often the stuff we don’t see right away that’s the juiciest for supercharging our businesses.

Question: What demographics do your customers fall into? Do you serve multiple demographics?

Let’s dig deeper: Behavior

If demographics are who your customer is “on paper,” behavior is what they do.

People encounter specific situations where they buy.

People buy dishwashers when their dishwasher breaks down. They stop for coffee while driving to work. They buy baby clothes, books and toys before having a baby or before attending a baby shower.

Personally, I like to get McDonald’s if I’ve been working hard and feel especially stressed. But when I buy groceries and plan out my meals, I’m all about veggies, wraps and healthy snacks. At different times, I might act like an entirely different customer type! And that’s pretty typical - because buying isn’t just about who you are, it’s also situational.

I run a small business that sells small novelty items like stickers and affordably priced home decor. We run promotions every weekend, when most of our customers have just been paid and want to buy an affordable treat for themselves or a friend. Understanding our customers helps us plan promotions and launch and highlight products at the right times of year.

Question: What are some occasions when customers want or need what you offer?

How we see ourselves: Personality

Personality encompasses traits that people have — ways that they think about the world and themselves.

Some people are risk takers; others seek comfort.

Some strive for conventional success, status and approval. Others take pride in creating their own code to live by.

Our personality traits influence our style, tastes and the messaging that appeals to us.

And they’re one of the biggest drivers of brand loyalty and brand relationships.

Question: What are some personality types you’ve noticed among your customers?

Check out this model of personality types and see if you recognize your customers or yourself.

Why we buy: Motivations

We’ve covered demographics, behavior and personality so far. But the Motivation layer is where we get into the emotional experience of making a purchase, and this are really critical to understand.

Some purchases are obviously more emotional than practical — entertainment, adornment, gifts, leisure activities. But all purchases can have emotional components, even paper towels and hiking boots.

Motivations are our desire to feel or seem a certain way, and most of us use products everyday to help achieve those goals.

There was a restaurant in my hometown of Bangor, Nicky’s, several years back (they didn’t survive the pandemic - RIP.) Their nostalgic 50’s diner branding, decor and menu was undeniably fun and memorable.

When I went to Nicky’s, I felt good - like I was participating in something special, homegrown, local and authentic. It met a need for fun and novelty that I was seeking in a dining experience. It felt authentic because it wasn’t a chain and wasn’t like everywhere else - it was something only available here.

That’s important to me as a customer who likes to shop small and is more about authenticity than prestige. It wasn’t really about the food for me - it was about the total experience. My motivations made me an ideal customer for their brand.

Question: What are your motivations when you purchase from your favorite company?

What are some motivations that might be in play when a customer makes a purchase from you?

The bedrock: Fears, worries, and anxieties

In our soil metaphor, fear is the bedrock - the final layer. It’s always down there, even if you can’t see it.

Fear is what will happen if the motivation doesn’t get what it wants.

What happens when the novelty-seeker can’t find anything new or exciting, when the aging-anxious can’t fend off mortality, or when the status-seeker can’t afford the sleek, well-designed gadget with the latest technology? What will they feel?

Fears are powerful motivators, but seldom revealed openly.

Think of a purchase you’ve made recently - maybe clothing, perfume or cologne, hair care product, jewelry or a watch, a retinol skin cream or an organic fruit smoothie. What motivates you to make that purchase? And what’s the underlying anxiety behind that motivation?

Just like us, our customers also deal with fears and use products and services to manage them.

Understanding what your customers worry about is powerful information. It helps to ensure that the branding and product line is meaningful to customers.

Usually we won’t talk about the fear directly in our marketing and branding. Instead, we’ll use the knowledge to guide our decisions, ensuring that we offer things that solve the fear. We bring comfort or excitement, humor or seriousness, as needed. Our colors, fonts, visual styles and brand voice help to communicate to the customer that we can solve their anxiety. And we also can avoid triggering those fears, even subconsciously, through unwise branding choices.

It’s part of how we understand the role that our products or services play in our customer’s lives.

Question: What do your customers worry about? How does your offering help them with their fear?

If you’re interested in developing a meaningful brand that authentically connects with your customers, you can schedule a free consultation with me. I develop impactful and beautiful visual brands — informed by deep branding strategy — for passionate small business clients.