Segmentation, Targeting, and Positioning

Newstore is an online platform that provides retail and brands with a mobile pont of sale
as well as a cloud-baed order management system hence serving in the ecommerce market. The
SaaS market segmentation centres its focus by assessing its general features. By looking at
comparable characteristics, requirements, and performances, the company can better connect
with its prospective customers. It can then allow its groups to focus on the most critical
segments. When there is no segmentation, the business risks considering all the same companies.
This is greatly an issue if the targets are as different as the replication of the Matrix agent, not as
good if the customers are real people. To demonstrate how effective, the role segmentation can
play in the life of a company; one might consider NewStore’s example. The company has
developed its solutions based on the services needed by its customers. The company
implemented its customer segmentation and took it to the extreme. The company’s algorithm
categorizes its products into the different solutions required, such as mobile POS, Omnichannel
order management, and inventory management. The company acquired a subsidiary that serves
as the backbone, providing retailers with the ability to develop outstanding shopping experiences
that link stores, consumers, and partners.
All of these functionalities provide companies with highly evolved recommendation
processes. It is one of their major differentiators and drives personalized recommendations via
different products. Today, the company is running the most sophisticated market segmentation in
the omnichannel solutions industry, which has enabled the company to be the closest thing to
one-to-one marketing.
The SaaS market segmentation differs because processes, considerations, and processes
can be different between such a model and business to customers. There are multiple decision-
makers in business to business markets. However, for a business to customers’ environment, a
company could be talking to individuals or groups; in business to business firms, it is likely to
have a network of multiple agents who sign off on purchase decisions. Businesses often have an
intricate network of systems and products. The challenge in attaching or removing solutions from
the entangled web changes the subscription process. For a business to business market, decision-
makers go through several rational processes. This is essentially a formal process of due
diligence concerning the convolution of the solutions, and the accountability to spend budgets
prudently implies recognized processes exist.
A SaaS purchase is longer-term than the typical short-term purchases associated with
ordinary consumer purchasing a software. The subscription to a SaaS buying is difficult, and the
process of attaching and removing implies that a change is not always welcomed. In the B2B
domain, a tiny number of clients will constitute a whole proportion of revenue. The company
boasts 113 customers in the retail field. The SaaS sales typically involve face-to-face interactions
with handshakes, business cards, and expenses. Deciding on the clients and prospects should be
given complete personalized service is one of the results of customer segmentations.
There are several ways to undertake a SaaS target market segmentation, and there is no one
approach that is heads and shoulders above another. However, all the approaches tend to involve
statistical examination of quantitative and qualitative data. It is important to note that consumer
personas are grouped into the wider segmentation category and involve interviews. The type of
segmentation model used by NewsStore depends on the strategy used as well as the budget and
the available data, and undoubtedly, the approach that the company can accurately do.
The health services markets can be segmented using firmographics. These are the sets of
attributes used in understanding and segmenting companies. It is important to consider them as

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the corporate versions of demographics, whereas B2C segmentation can use demographics, a
SaaS segmentation will use firmographics. The common firmographics comprise revenue,
growth trends, industry, location, and size of a company. Comparable businesses typically go
through similar challenges, even if they can be different in some other ways. Also, it is easy to
sell the segmentation within the company’s business, and everyone can understand the
circumstance.
The company has segmented on customer needs. One of the more common approaches is
needs-based market segmentation. This approach categorizes different groups of customers
according to what they need from the products or services. Because it is based on the attitudes
and needs of the companies, it is more subjective than firmographics. This is an important
method as it allows the company to focus on buying motivations. It is easy targeting people
facing similar pain points. The company has developed productivity-focused campaigns or some
that are budget conscious in an easier way than merely grouping all the small businesses into a
single category. The issue with the method is the challenge involved prudently specifying the
needs of various prospects. One can interview current rolls of customers and imply prospective
motivations from their requirements. The company can also differ from the way companies
interact with NewStore content. If the customers can find NewStore blog posts about lead
generation companies, they can assume that they are in the market for some top-level
prospecting.
The company can also segment the industry based on behaviour-based contexts. One of
the most important approaches is considering who the customer is and what they need.
Segmentation based on behavioral reasons looks at how the customer’s actions. The data can be
collected by considering the channels prospects visit the company through; the content prospects
interact with, the technology used by competitors or complementary technology, and how
customers interact with NewStore solutions. The benefit of such an approach is behavioural
segments can offer insightful information on what buyers need. Firmographic data might be
added to the insights, and these can range from web analytics, CRM data, and others. For most
companies, a marketing strategy is associated with a mix of who the prospects are, how they
want, and how they behave.
Customer-specific factors might include cultural, geographic, demographic, and
socioeconomic considerations. Situation-specific factors comprise user status, the number of
times certain users access the loans, and loyalty to the solutions. The unobservable basis for
segmentation can also be either customer-specific or situation-specific. Unobservable customer-
specific factors include psychographics, lifestyle, and personality; while situation-specific factors
consist of benefits attitudes, perceptions, intents, perceptions, preferences, and others.
Criteria for Segmenting the NewStore’s Heterogeneous Market

Criterion Resulting Segments
Geographic and Demographic Information 1. Locations of the branches

2. Size of the branch
3. Category of retail business

Operating Variables 1. Technology

2. Product and brand loyalty
   Purchasing profile 1. Purchasing power structures
3. Company-customer relationship
4. Revenue factors

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Situation factors 1. The urgency of the omnichannel

products and solutions

2. The nature of product that the company
   uses to lure customers to use the product
   Borrowers’ unique characteristics 1. Age, socioeconomic status, personality,

and employment position

The recognized segments should reveal measurability. It is possible to measure the size,
the purchasing power, and the rate that the borrowers use the services offered by the company. It
is important to assess the quantitative segmentation criteria, which ordinarily translates to higher
measurability of the segment. For instance, it is easier to gauge the frequency of solutions than to
measure customers’ perceptions of the solutions. However, the segments should be sizable to
help allocate company resources. It does not mean that the company should only pursue large
market segments, hence ignoring other possible lucrative niche segments.
After consumers have managed to identify their needs sufficiently, it is upon them to
chase information related to possible solutions regarding the current needs. Marketing can be
used to make the solutions appear more visible to the companies during the various stages of the
buying process. For firms, they must develop the appropriate solutions for their customers
because the incorrect solutions will not meet the needs set up before the start of the usage
process. The company can use either the external account or the internal details. Internal details
is one that already exists in the memory of the users. They arise from their own experiences with
the solutions and can be thought of as close substitutes to the solutions provided by the company.
Outside information can be collected from the media or other sources. During decision-making,
buyers can pay attention to internal information and then later trust externally generated
information.
Value Propositions
Newststore is an example of an Omni-channel marketing experience which is characterized by
several value prepositions.
Accessibility
Through the company’s online platforms, stores provide to their consumers the easiest
way to access customers and more so customers can seek products from the convenience of their
homes and their smart phones. The platform also makes stores accessible through offline
channels as well. The most integral part of accessibility as a value proposition is ensuring an
integrated, seamless experience across each store. The platform allows consumers to move
across devices and online as well as offline platforms and more so allowing the transition to be
seamless. The platform also allows messages to be informed by prior consumer’s encounters.
Accessibility is also characterized by taking a consumer-centric approach hence keeping the
comprehensive customer journey as the top agenda for the company ( Mohd et al, 2019).
Accessibility also allows a better user experience which an advantage of an omnichanel. As such
the company is able to focus on the individual customer experience as opposed to focusing on
the platform since the individual customer can have an individualized experience across devices
rather than the channel. Such focus helps to drive more sales and improve the retention rates.
Joining Newstore ensures that your customers will increase by 40 percent within the first 30 days
and your sales will increase by 50 percent within 6 months due to the platforms accessibility.

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The retention rate is also expected to improve by 60 percent within the first 30 days for any
customers that visits either the offline of online channel.
A cohesive brand identity and strategy
As an omnichannel, Newstore creates a seamless strategy across channels which enables
the company to build a brand image and tone that is easily identifiable. Newstore has not yet
identified a specific market niche, as search any brand can work with the company. Therefore the
company has based its image as an online marketing omnichannel platform which is the core
audience needs and values. As such the platform offers brands to access their markets through
the comprehensive brand strategy which helps the stores and brands to translate their relationship
with their customers through the platform into increased loyalty as well as the provision of more
targeted messaging. The company therefore creates a society for every brand and store through
improving customer loyalty which is also translated through increased retention rate of 60
percent within the first 30 days. In addition, as per the website of the company by using
Newstore, there is a 4 times increase in customer lifetime value since the company operates in a
model that it is cheaper to keep existing customers than to acquire new ones hence we aim at
increasing the value of our existing customers greatly to drive growth.
Increased engagement
Every business is evaluated through revenue creation which is also the main factor of
business existence. As such as an omnichannel, Newstore encourages the customers to engage
with a store or a brand across multiple channels or touch points. As such, there is increased
divergence in engagements of the journey attributed to a customer at every stage which translates
into increased revenue. The platform allows a 30 percent increase in a customer’s value due to
allowing them engage in multiple touch points. Since the company also allows targeted
messaging which translates into increased loyalty, it is an indication that the customer is more
likely to buy from the store or brand again. Therefore, repeat customers usually contribute about
40 percent of revenue of a business even though they are smaller portion of a brands or store
customer base (Holttinen, 2014). Upon beginning to use Newstore, the company through
increased engagement provides that a brands or stores revenue is expected to grow by 30 percent
in the first 6 months and by 50 percent in the first financial year.
Store fulfillment
One of the main challenges with online shopping is returns. As the e-commerce rise
globally, customer satisfaction is also being highly regarded requiring online and offline store to
ensure that they meet all customer requirement including store fulfillment. Some customers
disregard online shopping since it’s difficult to return especially when the product was purchased
from offshore company. As such Nestore provides store fulfilment to enable customers to shop
anywhere and return anywhere. As such even those who disregard online shopping are
encouraged to use Newstore. This helps stores increase their customer base by 20 percent within
the first 6 months. Store fulfillment is also applicable to customers who want to purchase a
product online and pick it up from a store. This process is highly recommded wince it allows the
possibility of up-sell opportunities. However in such an arrangement Newstore has ensured that
it as an appropriate staging area for the customers to be able to have easy and convenient access.
To allow such access a store associate is assigned to pick the order and confirm receipt.
Newstore also allows shipping of the products from the store which dependent on the customer’s
requests.
Mobile apps in-store

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In addition to online shopping experience, Newstore also provides an in-store experience
for the customers through providing mobile apps. This is attributed to the rising number of
customers who make in-store purchase and still use their smartphones make inquisitions about
the products they need. According to the 2021 ecommerc global report, about 70 percent of
consumers walk into stores while having their mobile devices (Patala, et al, 2020). To ensure that
such customer are considered and well served, having a mobile app in-store improves their in-
store experience. Such apps helps in-store customers to read reviews of the product they need,
comoare prices with other retailers’ websites on their smartphones. The apps also helps the
customers to order the product they needed if they are out of order as well as purchase product
online when they find queue times in-store to be longer. Some customers also need to research a
product online while in a store and therefore they need a mobile app that is convenient and has
adequate information such a product. Therefore in having the mobile app in-store, Newstore
ensures that a brand or store taps into the 70 percent of the customers who uses their
smartphones while in-store with the potential of turning 40 percent of such customers into
buyers.
Use of Commerce Cloud
To ensure the company has a competitive advantage in the competitive online market
industry, Newstore uses the Commerce Cloud which offers a plethora of advantages which are
unique to both retailers and consumers. To the customers, the Commerce Cloud ensures they
have a personalized experience either online of offline. Such an experience is enabled by the app
providing an open commerce application programing interfaces, allowing storefront workflows,
ensuring the customers are exposed to experiences that are intelligence driven in all their devices
as well as channels and also having storefronts and content that is customized for them. The app
also ensure that product sorting is accurate and tailored as well as the search results are relevant
to the customers current needs which is done through analyzing the habits of the customer and
creation of a better shopping experience. Through the use of clientelling app which helps
establish a long-term relationship with customers through behaviors, preferences and purchases
of the customers, Newstore has managed to increase sales of stores and brands. Clientelling helps
the brands and the stores to easily identify repeat and the high value customers. Customers need
to experience an extraordinary shipping time such as engaging with highly knowledgeable staff,
inventory look-up, excellent and comprehensive product information, credit card check out, and
other services. The clientelling app also provides customers with options especially when dealing
with product availability and out of stock. The app allows the customers to access different
stores as well as search which store has the product they require. It also provides a time frame in
which the product will be available and delivered. The app also helps the customers to compare
prices either in-store or while shopping online and more so allowing them to check the most
current trending styles. Such options allows the customer to have a great shopping experience
since they will make an informed purchase decision (Taylor, et al, 2020). The clientelling mobile
app has ensures that first time customers are turned into brand ambassadors and also they
become repeat customers which helps increase the sales of the store or brand.

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References

Holttinen, H. (2014). Contextualizing value propositions: Examining how consumers experience
value propositions in their practices. Australasian Marketing Journal (AMJ), 22(2), 103-
110.
Mohd Satar, N. S., Dastane, O., & Ma’arif, M. Y. (2019). Customer value proposition for E-
Commerce: A case study approach. International Journal of Advanced Computer Science
and Applications (IJACSA), 10(2), 454-458.
Patala, S., Jalkala, A., Keränen, J., Väisänen, S., Tuominen, V., & Soukka, R. (2020).
Sustainable value propositions: Framework and implications for technology
suppliers. Industrial Marketing Management, 59, 144-156.
Solomon, M.R., Dahl, D.W., White, K., Zaichkowsky, J.L. and Polegato, R., 2014. Consumer
behavior: Buying, having, and being (Vol. 10). Pearson.
Taylor, S. A., Hunter, G. L., Zadeh, A. H., Delpechitre, D., & Lim, J. H. (2020). Value
propositions in a digitally transformed world. Industrial