American Express launched its first travel and entertainment credit card in 1958 and was seen as an innovator in the field. Once the credit card competition started to catch up in the 1990s, the brand knew it had to differentiate itself to the top 1% of American consumers by market segmentation.
The company decided to selectively go after customers who had higher income, spending habits, loved to travel, and were big spenders. Implementing an aggressive market strategy, American Express increased spending by thousands for each customer and successfully added over $104 billion in charge volume in just three years.
American Express isn’t alone in its success. Many businesses–large and small–have enjoyed growth from marketing to specific affluent customers. And you don’t have to be a huge credit card brand to make it happen.
Segmenting is the separation of a group of customers with specific cultural needs into subgroups based on similarity and preferences. As McKinsey’s John Forsyth says, “We see many, many companies say, ‘I want to get more consumer-driven and customer-facing.’ But sometimes the organizations don’t know how to start.”
You wouldn’t market to Prince Charles and Ozzy Osbourne the same way!
Identifying the right market segmentation is important because it makes you better understand your target audience and effectively strategize on how to reach them. Instead of creating one-size-fits-all campaigns for 20.5 million people, for example, you can create several, more personalized campaigns for smaller audience segments with unique interests and behaviors. Once you have that deep customer data, you can then use it to better predict how specific audience segments will react to new products and advertising.
If you have two customers who are the same age. One could be Prince Charles. The other is Ozzy Osbourne, the Prince of Darkness. They’re both in the same demographic segment, but we can’t market to them the same way. It sounds straightforward but often it isn’t. While assessing segmentation, you should include these six characteristics:
Now you can strategically segment based on:
Affluence is a very widespread phenomenon in the USA. When you read stories about the affluent 1%–or the top 5% or 10%–how much money does your market segment need to be considered part of these groups?
According to recent data from the Economic Policy Institute, your prospect needs at least six figures to be counted among the nation’s top earners. Recent Pew Research survey on Americans’ values finds that 60% of Americans say “most people who want to get ahead can make it if they’re willing to work hard,” while 39% say, “hard work and determination are no guarantee of success for most people.”
Affluence has the power to create or destroy. It can fund a dream or start a war. Affluence can be used as an expression of a person’s spirit, creativity, ideas–or frustrations, anger, and hate.
According to Pew Research, Indians in the USA hold the highest incomes that exceed the nation median at $100,000 and rising. Collectively, South Asians at 20.5 million are presently spending approximately $1.1 trillion and expected to grow to $1.3 trillion by 2022. South Asians are the largest group of immigrants who principally are in higher-skill occupations.
FrontAd can help you effectively understand your target audience and more effectively strategize budget on how to reach them. As soon as you have a clear idea about your South Asian audiences, you can more effectively build campaigns that match their interest and meet them on their favorite platforms. FrontAd can effectively pave the way for you to reach:
Marketing segmentation can increase your brand awareness and sales by reaching an affluent new customer. FrontAd can help you measure data based on market segmentation and campaign results to learn even more about your audiences while delivering relevant products as well as messaging to the affluent South Asian audience.
Every business can use South Asian market segmentation insights and strategies to drive growth while truly understanding what makes the customers tick. It’s common for top performing brands to segment the market by various categories such as location, age, income, ethnicity, interests, and behaviors. Now is the time to connect with a new generation of South Asian buyers emotionally open to new experiences.
See how FrontAd can help position your business today!