The STP customer segmentation model for success

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43 L 48.796875 43 C 48.275261 38.532432 44.604108 35 40 35 z M 40 37 C 43.877484 37 47 40.122516 47 44 C 47 47.877484 43.877484 51 40 51 C 36.122516 51 33 47.877484 33 44 C 33 40.122516 36.122516 37 40 37 z M 18 46 C 10.306206 46 4 52.306206 4 60 L 4 64 L 26.269531 64 C 25.457834 65.84109 25 67.868987 25 70 L 25 74 L 55 74 L 55 71 L 55 70 C 55 67.868987 54.542166 65.84109 53.730469 64 L 76 64 L 76 60 C 76 52.306206 69.693794 46 62 46 C 55.158556 46 49.446319 50.988522 48.257812 57.503906 C 45.884282 55.926028 43.045242 55 40 55 C 36.954758 55 34.115718 55.926028 31.742188 57.503906 C 30.553681 50.988522 24.841444 46 18 46 z M 18 48 C 24.245162 48 29.37815 52.832416 29.921875 58.941406 C 28.934708 59.842395 28.067924 60.868215 27.347656 62 L 6 62 L 6 60 C 6 53.397794 11.397794 48 18 48 z M 62 48 C 68.602206 48 74 53.397794 74 60 L 74 62 L 52.652344 62 C 51.932076 60.868215 51.065292 59.842395 50.078125 58.941406 C 50.62185 52.832416 55.754838 48 62 48 z M 40 57 C 47.153388 57 53 62.846612 53 70 L 53 72 L 27 72 L 27 70 C 27 62.846612 32.846612 57 40 57 z M 8 58 C 7.449 58 7 58.449 7 59 C 7 59.551 7.449 60 8 60 C 8.551 60 9 59.551 9 59 C 9 58.449 8.551 58 8 58 z M 12 58 C 11.449 58 11 58.449 11 59 C 11 59.551 11.449 60 12 60 C 12.551 60 13 59.551 13 59 C 13 58.449 12.551 58 12 58 z M 16 58 C 15.449 58 15 58.449 15 59 C 15 59.551 15.449 60 16 60 C 16.551 60 17 59.551 17 59 C 17 58.449 16.551 58 16 58 z M 20 58 C 19.449 58 19 58.449 19 59 C 19 59.551 19.449 60 20 60 C 20.551 60 21 59.551 21 59 C 21 58.449 20.551 58 20 58 z M 24 58 C 23.449 58 23 58.449 23 59 C 23 59.551 23.449 60 24 60 C 24.551 60 25 59.551 25 59 C 25 58.449 24.551 58 24 58 z M 28 58 C 27.449 58 27 58.449 27 59 C 27 59.551 27.449 60 28 60 C 28.551 60 29 59.551 29 59 C 29 58.449 28.551 58 28 58 z M 52 58 C 51.449 58 51 58.449 51 59 C 51 59.551 51.449 60 52 60 C 52.551 60 53 59.551 53 59 C 53 58.449 52.551 58 52 58 z M 56 58 C 55.449 58 55 58.449 55 59 C 55 59.551 55.449 60 56 60 C 56.551 60 57 59.551 57 59 C 57 58.449 56.551 58 56 58 z M 60 58 C 59.449 58 59 58.449 59 59 C 59 59.551 59.449 60 60 60 C 60.551 60 61 59.551 61 59 C 61 58.449 60.551 58 60 58 z M 64 58 C 63.449 58 63 58.449 63 59 C 63 59.551 63.449 60 64 60 C 64.551 60 65 59.551 65 59 C 65 58.449 64.551 58 64 58 z M 68 58 C 67.449 58 67 58.449 67 59 C 67 59.551 67.449 60 68 60 C 68.551 60 69 59.551 69 59 C 69 58.449 68.551 58 68 58 z M 72 58 C 71.449 58 71 58.449 71 59 C 71 59.551 71.449 60 72 60 C 72.551 60 73 59.551 73 59 C 73 58.449 72.551 58 72 58 z M 30 68 C 29.449 68 29 68.449 29 69 C 29 69.551 29.449 70 30 70 C 30.551 70 31 69.551 31 69 C 31 68.449 30.551 68 30 68 z M 34 68 C 33.449 68 33 68.449 33 69 C 33 69.551 33.449 70 34 70 C 34.551 70 35 69.551 35 69 C 35 68.449 34.551 68 34 68 z M 38 68 C 37.449 68 37 68.449 37 69 C 37 69.551 37.449 70 38 70 C 38.551 70 39 69.551 39 69 C 39 68.449 38.551 68 38 68 z M 42 68 C 41.449 68 41 68.449 41 69 C 41 69.551 41.449 70 42 70 C 42.551 70 43 69.551 43 69 C 43 68.449 42.551 68 42 68 z M 46 68 C 45.449 68 45 68.449 45 69 C 45 69.551 45.449 70 46 70 C 46.551 70 47 69.551 47 69 C 47 68.449 46.551 68 46 68 z M 50 68 C 49.449 68 49 68.449 49 69 C 49 69.551 49.449 70 50 70 C 50.551 70 51 69.551 51 69 C 51 68.449 50.551 68 50 68 z"/></svg> </a> </div> <main id="site-main" class="site-main outer site-main-post has-post-image"> <div class="feature-post-wrapper"> <article class="post-full post tag-customer-segmentation "> <section class="post-full-content Customer segmentation"> <header class="post-full-header"> <div class="post-full-header-wrapper"> <section class="post-full-meta"> <time class="post-full-meta-date" datetime=" 2023-08-08">8 August 2023</time> <span class="reading-time">5 min read</span> </section> <h1 class="post-full-title">The STP customer segmentation model for competitive advantage</h1> <section class="post-full-meta"> <a href="/tag/customer-segmentation/">Customer segmentation</a> </section> <div class="post-author-with-linkedin-wrapper"> <div class="post-author-wrapper"> <section class="post-full-authors"> <section class="author-card"> <a href="/author/ella/"> <img class="author-profile-image" src="/content/images/size/w300/2023/04/Ella_Harrison.jpeg" alt="Ella Harrison" /> <section class="author-card-content"> <h4 class="author-card-name">Ella Harrison</h4> <div class="post-full-footer-right"> <div class="author-card-button">Read More</div> </div> </section> </a> </section> </section> </div> </div> </div> <div class="post-full-image" style="background-image: url(/content/images/2023/08/CMA-STP-model.jpg);"> </div> </header> <div class="post-content"> <aside class="toc-container"> </aside> <p>In today's super competitive marketplace, brands need to get smart about connecting with their ideal customers. One proven strategy? The STP model for customer segmentation.</p><p>Standing for <strong>Segmentation</strong>, <strong>Targeting</strong>, and <strong>Positioning</strong>, it’s a simple but powerful framework to identify your best customer groups, focus your efforts on the most valuable segments, and tailor your messaging and offerings specifically for them.</p><p>But mastering STP requires going beyond the basics. In this article, we’ll explore advanced segmentation strategies to take your marketing to the next level, so let’s dive in!</p><ul><li><a href="https://www.customermarketingalliance.com/p/aca4607a-7c64-4252-99fe-bced12632dfd/#unraveling-the-stp-model"><strong>Unraveling the STP model</strong></a></li><li><a href="https://www.customermarketingalliance.com/p/aca4607a-7c64-4252-99fe-bced12632dfd/#why-use-the-stp-segmentation-model"><strong>Why use the STP segmentation model?</strong></a></li><li><a href="https://www.customermarketingalliance.com/p/aca4607a-7c64-4252-99fe-bced12632dfd/#final-thoughts"><strong>Final thoughts</strong></a></li></ul><p></p><figure class="kg-card kg-bookmark-card"><a class="kg-bookmark-container" href="https://www.customermarketingalliance.com/ultimate-guide-to-customer-segmentation-the-what-why-and-how/"><div class="kg-bookmark-content"><div class="kg-bookmark-title">Ultimate guide to customer segmentation.</div><div class="kg-bookmark-description">Customer segmentation is a tool used by businesses that sorts and categorizes your existing customers by certain characteristics. This tool has a multitude of benefits, which we’ll be going over in this comprehensive guide.</div><div class="kg-bookmark-metadata"><img class="kg-bookmark-icon" src="https://www.customermarketingalliance.com/content/images/size/w256h256/2022/04/android-chrome-192x192.png" alt=""><span class="kg-bookmark-author">Customer Marketing Alliance</span><span class="kg-bookmark-publisher">Eve Chatfield</span></div></div><div class="kg-bookmark-thumbnail"><img src="https://www.customermarketingalliance.com/content/images/2022/06/dil-8OECtq8rrNg-unsplash--1-.jpg" alt=""></div></a></figure><p></p><h2 id="unraveling-the-stp-model"><strong>Unraveling the STP model</strong></h2><p>By following the STP marketing model, businesses can ensure that their marketing efforts are customer-centric, focused, and relevant. <br></p><p>Embracing the segmentation process allows companies:</p><ul><li>to <strong>understand the diversity </strong>within their market,</li><li>targeting enables them to <strong>concentrate resources </strong>effectively,</li><li>and positioning helps them <strong>differentiate</strong> and connect with customers in a <strong>meaningful</strong> way. <br></li></ul><p>Adopting this model approach boosts the chances of delivering the <em>right</em> message to the <em>right</em> customers, fostering customer loyalty, and driving business growth, here’s how we break it down:</p><h3 id="ssegmentation">S - Segmentation</h3><p>Consider a sprawling digital marketplace, where each user is a unique blend of interests, challenges, and desires. Segmentation acts as a prism, refracting this vast customer base into discernible, manageable spectrums. <br></p><p>By categorizing potential customers into distinct groups—whether by <strong>demographics</strong>, such as age or gender, <strong>psychographics</strong>, such as values or lifestyles, <strong>behaviors</strong>, or even <strong>geography</strong>—businesses gain the ability to craft strategies that resonate on a more personal level.<br></p><p>By segmenting the market, companies gain insights into the diversity of their customer base, allowing them to create more targeted marketing initiatives.<br></p><blockquote><em>For example, a fitness apparel brand may divide its market into segments such as active gym-goers, yoga enthusiasts, outdoor adventurers, and casual joggers.</em></blockquote><h3 id="ttargeting">T - Targeting</h3><p>With a segmentation map in hand, the next step is to prioritize. Targeting sharpens the focus, allowing companies to evaluate and <strong>select specific segments that best align with their goals</strong> and have the highest potential for profitability and growth.</p><p>Through target market analysis, businesses assess the attractiveness of each segment based on factors such as size, growth potential, competition, and compatibility. <br></p><p>By focusing their efforts on a well-defined target market, companies can optimize their marketing resources, enhance customer satisfaction, and achieve a competitive advantage.<br></p><blockquote>Using our fitness apparel example, the brand might decide to target active gym-goers and yoga enthusiasts due to the rising trends of gym fitness and mindfulness practices.</blockquote><h3 id="ppositioning">P - Positioning</h3><p>This is the culmination of the process, where you meld understanding and focus into a <strong>unique brand narrative</strong>. <br></p><p>It's not merely about delineating product benefits; it's about <strong>etching a brand's essence meaningfully into the minds of consumers</strong>. With effective positioning, businesses can convey not just what they sell, but <em>why they matter</em>.<br></p><p>Effective positioning takes into account the specific needs and desires of the target segment, aligns with their perceptions and preferences, and communicates a clear and consistent message that will resonate.</p><blockquote><em>Our fitness apparel brand, for instance, might position itself as the go-to brand for sustainable, high-performance wear that supports both rigorous workouts and meditative yoga sessions.</em></blockquote><p></p><figure class="kg-card kg-bookmark-card"><a class="kg-bookmark-container" href="https://www.customermarketingalliance.com/how-to-use-demographic-segmentation-improve-your-marketing-personalization-techniques/"><div class="kg-bookmark-content"><div class="kg-bookmark-title">How to use demographic segmentation: Improve your marketing personalization techniques</div><div class="kg-bookmark-description">Demographic segmentation separates your existing customers based on some basic factors of their identity but doesn’t include things like geography, purchasing behaviors, and personality.</div><div class="kg-bookmark-metadata"><img class="kg-bookmark-icon" src="https://www.customermarketingalliance.com/content/images/size/w256h256/2022/04/android-chrome-192x192.png" alt=""><span class="kg-bookmark-author">Customer Marketing Alliance</span><span class="kg-bookmark-publisher">Eve Chatfield</span></div></div><div class="kg-bookmark-thumbnail"><img src="https://www.customermarketingalliance.com/content/images/2023/01/charlesdeluvio-oAa4BY3b-vo-unsplash--1-.jpg" alt=""></div></a></figure><p></p><h2 id="why-use-the-stp-segmentation-model">Why use the STP segmentation model?</h2><p>This widely-used marketing strategy can help businesses identify and better understand their target market, customize their marketing efforts, and position their products or services effectively. Here are several reasons why your business should adopt this model:</p><p><strong>🔮 Customer insight mastery</strong></p><ul><li>The STP model is like a magnifying glass, amplifying nuances in customer behavior and preferences.</li><li>It doesn't just offer data; it offers actionable insights. Businesses can better anticipate market trends and customer shifts, ensuring they're always one step ahead.<br></li></ul><p><strong>💸 Leverage on resources</strong></p><ul><li>Every business, regardless of its scale, operates within resource constraints.</li><li>The STP model, with its targeted approach, ensures that every marketing dollar is invested, not just spent.</li><li>This focused approach invariably leads to better ROI and minimizes wasteful expenditure.<br></li></ul><p><strong>🫵 Hyper-personalized marketing</strong></p><ul><li>Today's consumers crave experiences, not just products.</li><li>Personalized marketing, fostered by the STP model, crafts messages that don't just inform but resonate.</li><li>By tailoring campaigns to distinct segments, businesses can evoke emotional connections, which are far more lasting than transactional interactions.<br></li></ul><p><strong>👀 Forge a distinctive identity</strong></p><ul><li>In a cluttered marketplace, differentiation is the lifeline. The STP model serves as a scaffold, enabling businesses to elevate their offerings and identity.</li><li>It's not just about avoiding being a face in the crowd, but about being the face that everyone recognizes.<br></li></ul><p><strong>💡 Drive Product Evolution</strong></p><ul><li>Deep insights into customer segments can lead to innovative product development.</li><li>By understanding the intricacies of each segment's needs, companies can innovate proactively, often unveiling products the market didn't know it needed.</li><li><em>Our hypothetical fitness brand might launch a yoga pant line made from all sustainable materials that also support high-impact workouts, thus addressing the wellness and mindfulness niche within its target segments.</em><br></li></ul><p><strong>💬 Efficient communication channels</strong></p><ul><li>The STP model refines not just what businesses communicate but also how they do it.</li><li>Tailoring channels to match segment preferences—like social media campaigns for millennials or email campaigns for older consumers—ensures better engagement and conversion.<br></li></ul><p>🔐 <strong>Discover hidden markets</strong></p><ul><li>An in-depth dive into market segmentation often reveals underserved or overlooked niches.</li><li>These latent opportunities, when harnessed, can become significant revenue streams.<br></li></ul><p>⚖️ <strong>Diversify and mitigate risk</strong></p><ul><li>Relying on multiple customer segments provides a safety net. While one segment might face economic challenges, growth in another can offset downturns, ensuring business stability.<br></li></ul><p>📣 <strong>Foster loyalty and advocacy</strong></p><ul><li>A business that resonates with its audience and consistently meets their unique needs invariably transforms customers into brand advocates.</li><li>This organic promotion is invaluable in an age of skepticism towards traditional advertising.<br></li></ul><p><strong>📈 Iterative refinement</strong></p><ul><li>The dynamic nature of the STP model promotes continuous learning.</li><li>It's a framework where businesses can measure, learn, refine, and iterate, ensuring that strategies evolve in tandem with market shifts.</li></ul><p></p><h2 id="final-thoughts"><strong>Final thoughts</strong></h2><p>The STP customer segmentation model isn't a mere marketing tool; it's a compass that charts the course towards sustainable business growth. </p><p>It promotes a customer-first approach, where decisions are rooted in deep insights and an understanding of the ever-evolving marketplace. For businesses seeking not just to survive but thrive in today's competitive landscape, understanding the STP model is paramount. </p><p>By doing so, you can transition from being mere market participants to influential market leaders. <strong>So what are you waiting for?</strong></p><p></p><hr>  <a href="https://www.customermarketingalliance.com/signup/"> <img src="https://www.customermarketingalliance.com/content/images/size/w1000/2022/09/CMA_Pro_Membership_AD_2.png"> </a>  </div> <aside class="post-upgrade-cta hidden-upgrade"> <div class="post-upgrade-cta-content"> <img src="/content/images/2024/07/android-chrome-192x192--1--1.png" alt="Customer Marketing Alliance icon" class="site-logo" /> <h2>Like what you see? 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console.log("You are on the portal/viewplans page"); } else { console.log("You are not on the signup/plan page"); } // Start observing the target node for configured mutations const targetNodePortalRoot = document.getElementById("ghost-portal-root"); if (targetNodePortalRoot) { const config = { attributes: true, childList: true, subtree: true }; const poratalObserver = new MutationObserver(function() { callPortalIframe(); }); poratalObserver.observe(targetNodePortalRoot, config); } else { console.error("Could not find #ghost-portal-root element"); } }); })(); </script>  <script type="text/javascript" src="https://www.customermarketingalliance.com/assets/built/jquery.js?v=945d8828d2" ></script> <script type="text/javascript" src="https://www.customermarketingalliance.com/assets/built/jquery.fitvids.js?v=945d8828d2" ></script> <script type="text/javascript" src="https://www.customermarketingalliance.com/assets/built/ghost-lunr.js?v=945d8828d2" defer></script> <script type="text/javascript" src="https://www.customermarketingalliance.com/assets/built/search.js?v=945d8828d2" defer></script> <script type="text/javascript" src="https://www.customermarketingalliance.com/assets/%20built/jquery.fitvids.js?v=945d8828d2"></script> <script> // NOTE: Scroll performance is poor in Safari // - this appears to be due to the events firing much more slowly in Safari. // Dropping the scroll event and using only a raf loop results in smoother // scrolling but continuous processing even when not scrolling $(document).ready(function () { // Start fitVids var $postContent = $(".post-full-content"); $postContent.fitVids(); // End fitVids var progressBar = document.querySelector('#reading-progress'); var header = document.querySelector('.floating-header'); var title = document.querySelector('.post-full-title'); var lastScrollY = window.scrollY; var lastWindowHeight = window.innerHeight; var lastDocumentHeight = $(document).height(); var ticking = false; function onScroll() { lastScrollY = window.scrollY; requestTick(); } function onResize() { lastWindowHeight = window.innerHeight; lastDocumentHeight = $(document).height(); requestTick(); } function requestTick() { if (!ticking) { requestAnimationFrame(update); } ticking = true; } function update() { var trigger = title.getBoundingClientRect().top + window.scrollY; var triggerOffset = title.offsetHeight + 35; var progressMax = lastDocumentHeight - lastWindowHeight; // show/hide floating header if (lastScrollY >= trigger + triggerOffset) { header.classList.add('floating-active'); } else { header.classList.remove('floating-active'); } progressBar.setAttribute('max', progressMax); progressBar.setAttribute('value', lastScrollY); ticking = false; } window.addEventListener('scroll', onScroll, { passive: true }); window.addEventListener('resize', onResize, false); update(); var getHiddenUpgrade = document.querySelector('.hidden-upgrade'); if (getHiddenUpgrade && isHiddenUpgradeVisible) getHiddenUpgrade.style.display = 'block'; }); // window.inArticleAdList = [ // { // img: 'https://static.ghost.org/v3.0.0/images/publishing-options.png', // url: '/' // }, // { // img: 'https://static.ghost.org/v3.0.0/images/admin-settings.png', // url: '/' // } // ]; if (window.inArticleAdList && !window.inArticleAdListDisabled) { const getSelectPostContent = document.querySelector('.post-content'); const getSelectPostContentLength = parseInt(getSelectPostContent.children.length / 2); const getSelectPostContentItem = getSelectPostContent.children[getSelectPostContentLength]; const thisinPostAd = document.createElement('a'); thisinPostAd.classList.add('post-in-post-ad'); const getRandAdItem = inArticleAdList[Math.floor(Math.random() * inArticleAdList.length)]; 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