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  1. #1

    Targeting customer groups

    This question is not to do with hosting as such, but more to do with business in general.

    Basically what do you think about targetting 2 customer types from one business?

    Example - Customer types

    Group 1 - are the people who are looking for a bargain / or are on a tight budget
    Group 2 - wants better service / more choice and is willing to pay for it.

    is it a good idea to target both these groups? and basically offer the cheaper product as a second choice? so both customers groups can see whats on offer and they can choose whats best for them?

    That are the advantages and disadvantages of this approach?

  2. #2

  3. #3
    Well, you'd need to really make sure you clearly spell out the difference between the "budget" product/service and your "premium" product/service.

    Otherwise your potention premium clients will simply think your giving the same service to everyone, but just charging them more for it.

    In other words, you should be clear about what is "premium" and what is "budget".

    ie: If you advertise 24x7 support to both groups... then what is the difference? Why would someone pick your premium hosting if they can get the same service with your budget hosting?
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  4. #4
    It would also be best to know what type of website choose budget over premium. In my experience, teen sites look for the cheap hosting with some minimal downtime since their site is not really that critical.
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  5. #5
    Join Date
    May 2004
    Location
    Lansing, MI, USA
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    1,548
    You could just do some tricks on referer watching on your site to show the budget plans.
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  6. #6
    Join Date
    Feb 2002
    Location
    Philadelphia, PA
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    96
    IMHO: Your plans should be based on the amount of resources your customer receives, which doesn't necessarily reflect the type of customer. The type of customer or profile is where "targetting" comes into play.

  7. #7
    I would defiantly suggest targeting customers who do not mind paying more for a personal service.

    Additionally, no matter how much disk space and bandwidth your customers consume, the biggest cost is almost always going to be the human interaction required (sales and support).

  8. #8
    Join Date
    Mar 2003
    Location
    Duluth MN
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    3,864
    "An indian sits by the side of the road selling pots. One pot is labeled $5, an identical pot right next to it is labeled $10. One day his son asked why the idential pots were priced as such. The old indian replied 'Some people want to buy a $5 pot, other people want to buy a $10 pot'."

  9. #9
    if you ask me the best type of person to target is a person considering starting up a shop, where they will need more space and will also be looking fora good price and good customer support, also the great things with shops is they expand very quickly so you will find yourself with a large income

  10. #10
    Targeting is a verb not a noun, discussing on targeting we most of the time visualize the group of viewers or customers but we forget to enhance the quality for targeting.

    Before targeting customers ask question within yourself;

    What you can offer for the profitability to your customers, which your competitors are not offering?

    What do my competitors offer that I could improve on it?

  11. #11
    Tough one. I'd have one domain with two gateways. One gateway for target type 1 and another for target type 2 and advertise them in different locations. That way you get to keep one business umbrella and have different marketing and presentations to each target without compromising your options in each target market.

    Maybe use 2 domains with similar names or have them written differently or use the .net and .com and do it that way...

    LH
    If the web closed at midnight, what would YOU do?

  12. #12
    It needs two different approaches to the market segmentation, if you want to target with same domain.
    You should find out the customers and focus on it after getting the component of segmentation analysis of each target market with completely different approach.

    Your idea is not bad to experiment the 2 domains with similar names or have them written differently or use the .net and .com, but even it will require a completely different approach and also the two domains should look different by doing some of cosmetic changes to each.

  13. #13
    thanks guys!

    some intresting points here. Its hard to decide what to do at this point. I might choose one of the group and just target them. but on the other hand i don't want to loose another big part of the market. (and i'm thinking very local so it is realistic to target more then 1 customer types)

    maybe i'll start with one and once thats working, start the other too. as a completly new business that way customers of boths ites know that the company is focused!

  14. #14
    You should consider the different criteria to identify the two different markets first, as considering the size of the market, expected growth, competitive position, cost of reaching to the market, Compatibility with your objectives and the resources.

    Thereafter you can go for proper positioning with relevant dimensions to both different markets with different approach but equal amount of attention to both target markets.

  15. #15
    Very good suggestions from eTechSupport2. I am sure this will help saghir69
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  16. #16

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