I was discussing with my friends about the change in the retail industry. After discussing I thought to find what are the new online market segmentation techniques and I found some interesting articles like Pokemon Go effect. Hence, I thought to share some insights on online market segmentation.
Signs of customers “skating away from old-fashioned way of shopping”
1. Shoppers know as much as salespeople
Then: Due to the lack of information, people relied on the salesperson to advise them on what to buy.
Now: Today, shoppers can compare the price, quality, brand of the products online and can decide which website can give the maximum value of their purchase. Example – www.thefind.com compared the products according to the price while gathering information from other websites.
Now, such kind of websites will not be gathering information only from one demography or does not depend on gender, age, because of the global market, there is a need for further segmentation. (Thefind Inc. was overtaken by Facebook in 2015 because of excellent customized recommendation of products which was beneficial to Facebook for its improvement in commerce ads)
2. Products can jump off the screen
Then: The internet was fine for researching, but there was no replacement for holding, feeling, inspecting a physical product on a store shelf or showroom floor.
Now: Interactive video, 360 views, gestural controls are just a few of the options bringing products alive on customers’ multiple screens. Example- http://www.lenskart.com/, invites customers to mix and match frames against their photo. When retailers showcase products online in a unique way, they create opportunities for customers to interact with products on an emotional level.
When consumers emotions are activated, their desire to buy is sparked. Again here, we are only beginning to see the possibilities for more segmentation because of replacement of physically inspecting the product by virtually inspecting it.
3. The ‘Pokemon GO’ effect
In 2016, there was news about the game Pokemon Go on going into retail business. It can show a gym (which may be called pokegym) or restaurants or a real estate in your location using geolocation technology. I also think it will use our behavior for shopping, eating from our location and can provide ads according to it. Such, apps or games can totally change the conventional segmentation of demography because it will be used everywhere and can identify customers behavior and can segment the products for an individual in any location.
Let’s end the article by discussing what will be the common among people who are using this websites by considering the Pokemon Go effect.
The game is built on your location. Suppose a person goes to an Indian restuarant for the meal on a particular date, and some days later the same person is playing the game on a meal time. It is possible that through geolocation, the game may take the person to the nearest Indian restuarant to catch a pokemon. It may lead that person to eat the meal in an Indian restaurant again. Now this segmentation is dependent on the behavior of the individual, time of playing the game, his location. Hence, the market segmentation will be dependent upon a combination of many things and not only on a single segmentation related to conventional age, gender, geography or income.