Why Customer Segmentation is Important for Eateries and Food Business?
By *Ameen Ahsan Strategy Consulting*
People no longer need a reason or a special occasion to eat out. Consumers—across metro and non-metro cities—eat out simply because they want to experiment, love food, or that’s how they want to spend their free time.
A restaurant today is not just a place for eating. It is a place to socialize, to unwind and more. Eating out is no more the rich man’s indulgence. There are options, and people, irrespective of economic class, go out to eat.
For years and years, restaurants have been doing an entry-level form of market segmentation.
Demographics have primarily driven restaurants’ decisions in creating these segments. Age. Gender. Household income. Education level. Psychographics have influenced some decisions as well.
Market segmentation in the restaurant industry is the practice of targeting a specific customer base to maximize sales, even if it means alienating other potential customers. Going for a smaller piece of market share by offering a benefit attractive to only one group often leads to customers in that group becoming repeat buyers, spending more with you than if you tried to get more people buying from you by offering a generic product.
Classifying customers allows you to spend less to acquire more ideal customers with the right messaging, marketing and customer relations. Segmenting customers allows you to gain a clear understanding of your best customers’ needs, wants and habits. Because you know exactly what kinds of marketing and advertising they prefer, you can personalize the customer relationship in every area of your eatery business.
You can’t determine how to sell more until you know precisely who you’re selling to. Once you’ve identified your best customers—where they’re located, how they want to hear from you and what compels them to buy—you can identify exactly what they need and want, and then deliver it.
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