A Guide To Creating A Regional Market Strategy
Even if your business operates in multiple locations in the U.S., you still need to adopt a local approach to attract loyal customers.
Notably, 91% of customers say they’re more likely to shop from brands that provide products and recommendations relevant to them.
Fortunately, a regional market strategy can help you more easily tailor your offerings to suit customers’ specific preferences, needs, and expectations in various states. In turn, you can improve customer satisfaction and loyalty and drive sales.
Segment your customers based on location.
Dividing your customers into groups based on location can provide insights into their purchasing habits.
You may segment your customers based on state or city (these are the most obvious options), although you can also consider different regional climates.
For example, if you sell outerwear, customers in states like Alaska and North Dakota will need heavy jackets in winter. In contrast, people in warmer areas like Florida or San Francisco may need a light jacket at the same time of year.
You can use customer IP addresses and mailing and billing addresses to find your customers’ locations. You may also be able to access other customer location data via online forms on your website, for example.
AI tools for geographic segmentation
AI tools can also speed up and simplify the collection and analysis of location data. For example, OptiMove is an AI marketing tool that can identify similar groups of customers based on location, behavior patterns, and demographics down to the smallest variation. It uses customer clustering analysis to do this.
The Optibot also analyzes the data to highlight patterns and provide actionable next steps. Insight7 is another useful AI tool that can aid with customer geographic segmentation. It combs through large amounts of data to highlight patterns across customer segments, preferences, and accounts.
As Insight7’s machine learning algorithms continuously improve upon their segmentation models, you’ll always benefit from accurate and relevant results.
Understand regional customer needs
Once you know where your customers are, you need to understand their needs, which can vary from region to region. So, analyze customer shopping habits — market research surveys are an easy way to do this.
For example, ask customers what they like and don’t like about your product or service. What improvements do they want to see? Then, segment your results by region, city, or state and look for common response trends.
You can also compare customer satisfaction and loyalty rates in different locations to see where your biggest fans reside. Consider why customers are so happy in these locations and if you can replicate what you’re doing well in other areas.
Upgrade your business structure.
As your business expands across the U.S., you may want to upgrade your legal structure to a limited liability company (LLC) if you haven’t done so already. One of the biggest benefits of an LLC is personal asset protection.
Your home, bank accounts, car, and investments remain off-limits if your business is sued. Plus, you also have the freedom to form your LLC in any state, with some areas offering benefits over others.
Michigan, for instance, has the lowest LLC filing fees in the U.S. at just $50. In comparison, fees in Texas are as high as $300. Fortunately, in addition to being cheap, registering an LLC in Michigan is a relatively quick and simple process, spanning around ten days.
Learn more about this process so you know what to expect and prepare properly. However, you may also want to consider filing in other states.
For example, Wyoming’s filing fee is $100, which is slightly more expensive but has no state income tax. Wyoming’s sales tax is also low at just 4%, making it an attractive option.
Adapt your offerings to individual regions.
You’re ready to change your business offerings to suit customer needs and preferences in different regions at this stage.
So, for example, if you own a coffee shop, you may find customers in sunny states who want outdoor seating, while those in colder locations prefer to sit in-store. With this customer data, you can expand and upgrade indoor and outdoor seating in different locations.
Alternatively, you may notice a difference in the needs of urban vs. rural customers. For example, if you’re a garden store, don’t market lawn tractors to city residents — compact, cordless mowers are more suited to lighter mowing tasks for smaller lawns.
A regional market strategy is key to attracting loyal, happy customers. You can improve customer satisfaction and boost your bottom line by tailoring your offerings to meet customers’ preferences and needs across various states.