As a building company owner, you’re probably feeling the pinch of a sluggish market and stiff competition from other builders. It’s tough when the number of building opportunities is limited, but the number of competitors is high. The pressure to stand out in this crowded space is immense, but there’s a strategic way to navigate through these tough times - segmentation.
Think of segmentation as dating in a crowded room with only a few suitable partners. Let’s break this down.
The dating analogy: too many guys, too few women
Imagine you're at a party where there are lots of guys (builders) and just a few women (ideal customers). Everyone is trying to catch the attention of those few women, but it’s a struggle because everyone is saying the same thing: “I’m a great guy! Pick me!” The women are overwhelmed by the flood of generic messages, and most simply tune out the noise. In this situation, if you’re trying to stand out, being more specific and targeted is crucial.
You can’t just rely on a one-size-fits-all approach. Instead, you need to segment the women (your potential customers) based on specific traits that make them unique, such as their interests, needs, and desires. By doing so, you can tailor your message and make it more compelling for each group.
Market segmentation: dividing the room
Just like the few women at the party, there are fewer building opportunities. However, they can still be lucrative if you approach them strategically. To stand out, you need to segment the market into smaller, more manageable groups with similar needs and characteristics. For example, these segments could include:
- Needs: Affordable, quality homes that offer security for their future.
- Message: “Building your first home can be daunting. Let us guide you with a stress-free, transparent process so that you can move in with confidence and joy.”
- Needs: Smaller homes with low maintenance, designed for easy living and future-proofing.
- Message: “Your dream home doesn’t have to be big—it just needs to be the right size. Let us help you create a home that is functional, easy to maintain, and full of style.”
- Needs: Revamping their current home to suit modern needs, aesthetics, and comfort.
- Message: “A home renovation is a journey. We’ll work with you to create a space that reflects your style and enhances your everyday life.”
- Needs: Sustainable, energy-efficient homes that align with their environmental values.
- Message: “Build with the future in mind. Our ecofriendly homes are designed to reduce your carbon footprint while providing long-term savings.”
By breaking down your potential customers into these smaller groups, you can now focus on crafting more personalised messages that speak directly to their needs and desires. This is far more effective than casting a wide net with generic messaging, which may leave your target audience feeling like just another face in the crowd.
Just as in the dating analogy, you wouldn’t approach every woman at the party with the sameline - you’d tailor your approach based on who she is and what she’s looking for. Similarly, for each segment in your market, you need to speak their language and address their pain points or dreams directly.
For example, if you're targeting first-time home buyers, your message should focus on easing their concerns about the home-building process. Offer them security by showing them you are trustworthy, experienced, and reliable. On the other hand, if you’re targeting empty nesters, focus on low maintenance and maximising their lifestyle with a home that fits their changing needs.
Like a successful date depends on getting to know the person you’re talking to, successful marketing involves personalising your approach.
By segmenting the market, you can create content that resonates with each group’s unique needs. This might include personalised ads, blog posts, case studies, and testimonials that speak directly to their experiences and goals.
Personalised content builds trust and creates a connection with your potential clients, which is critical in a competitive market. It shows that you understand their specific needs, making it more likely that they’ll choose you over a competitor casting a broader, less focused net.
Finding the right match
In a market filled with competition and fewer opportunities, trying to appeal to everyone can feel like shouting into the void. The key to success is finding the right match, and that’s where market segmentation comes in.
By identifying different groups within your target market and tailoring your messaging for each one, you can ensure your marketing resonates more deeply with potential customers. It’s not about getting the most attention - it’s about getting the right attention.
So, next time you're feeling the pressure of a competitive market, remember the dating analogy. Focus on understanding your audience better, refining your message, and making it as personalised as possible. This will set you apart from the crowd and help you win the right clients who are looking for what you offer.
Andy specialises in working with the owners of construction related businesses to build systems and profitability into their operations.
You can contact Andy by email: andy@tradescoach.co.nz