Marketing Segmentation — The Art Of Finding Customers You Can’t Afford To Miss
Online businesses are battling for your attention every minute, each with a different message of marketing. We predict that in 2021, you will see between 6,000 and 10,000 marketing messages daily.
To reach the right audience, marketers must first understand their market. If you’re trying to approach a large group of people that aren’t interested in your product, your message will end up reaching a whole lot of people who aren’t interested in your product.
To reach the right audience, marketers must first understand their market. If you’re trying to approach a large group of people that aren’t interested in your product, your message will end up reaching a whole lot of people who aren’t interested in your product.
What Is Marketing Segmentation?
Segmentations are a billion-dollar idea. To ensure that marketing messages reach the right audience, research must be conducted to determine whether the campaign is going too broadly. If your targeting is too broad, the campaign will also reach people who are not relevant to your product, and it will show up in several marketing campaigns that are not related to it.
Your Method To Grow
Segmentation is a method to identify and categorize users in a group. Even a simple product like sugar will benefit from segmentation.
When marketing to different kinds of consumers, it is essential to market to different personas that target their needs and expectations.
Sugar, for example, is categorized into different types depending on how it is used, such as brown sugar, white sugar, and cane sugar.
Learn these 6 Methods To Perfect Segmentation
1- Demographics
Demographics is one of the most popular methods for gathering insights about your audience. It is precious because it is a straightforward way to collect data on many people.
Demographics can include:
- Gender
- Age
- Profession
- Geographic location
- Income level
- Marital status
- Race
- Education
- Ethnicity
2- Behavioral patterns
You can learn a lot only based on the behavior of users and the actions they practice when browsing online.
Examples:
1-Which items or services do they buy online?
2-What motivates them to make a purchase?
3-What motivates them to shop online?
4-Do they buy online at certain times of the year? Do they shop before the holidays?
3- Steps in a buyer’s journey
Customers at different steps of the buyer’s journey may benefit from various marketing strategies. The stages of a buyer’s journey typically include 3 actions: awareness, consideration, and decision.
Awareness:
Awareness is a stage where consumers are seeking information about your company. They may be looking to solve an existing problem or need or even looking for new products or services. Through effective marketing content, you can help them seek solutions to their problems and find products they want to buy.
Consideration:
At this stage, consumers are aware of the service or product they need but are still investigating which variables would be most beneficial to that service or product. Customers in the consideration stage may be more interested in content that provides comprehensive information on related features.
Decision:
When your customers are in the decision stage, they’ve made up their minds but still need some time to make it official. This customer typically chooses between several items or services or has chosen one but is searching for the best price.
Users are at their most engaged stage at this point in the process. Targeted or shopping advertising could be the most effective way to meet this consumer group.
Engagement level
Customers who interact with your brand regularly may benefit from a different marketing strategy than customers who occasionally interact.
Marketers can determine a customer’s level of engagement by considering several factors, such as:
- Purchase history
- Browsing history
- Newsletter or social media subscriptions
- Posting reviews or feedback on the internet
Regularly, people who interact with your brand may prefer to receive more detailed content, such as loyalty programs or insider information on your newest products. Customers who interact with your brand less frequently may benefit more from content that emphasizes the value of your products or their best features.
4- Device type
The device that a customer prefers may also influence how they interact with content. Users who interact with your brand primarily through mobile devices, for example, may like shorter emails, social media posts, and other rich content. By creating an audience segment for this group, you will be able to target them with more concise content.
5- Personality
Psychographics is a marketing strategy that uses an analysis of a user’s online behavior to predict their passions, values, hobbies, intentions, needs, and personality traits. Knowing a customer’s psychographics can assist marketers in emphasizing the features of their products or services that are most important to that audience segment.
For example, if you discover that a particular segment of your audience enjoys comedy films and television shows, consider targeting those customers with humorous content. As another example, if you find out that a portion of you know that your users love to travel, you could leverage this information and emphasize how your product or service saves money so they can spend more on vacations.
6- Customer satisfaction
Some marketers believe that distributing different content to customers based on how satisfied they are with their products or services is beneficial. Marketers can contact customers who left negative feedback with content such as apologetic emails, assurances that you have worked to resolve the issue or discount codes. Customers who already have positive feelings about your brand may benefit from receiving content that includes different products or services they might be drawn to, tutorials, service reminders, and other content that builds on their positive engagement.
How to segment your customers?
Customer segmentation starts with data.
To begin with marketing segments, you need to collect multiple data points on your customers. Once you gather the data, you can start your segmentation process.
5 steps to segmenting your customers:
- Set up a project with your product champion and the leadership team.
- Complete a business case that demonstrates value in segmentation.
- Define your customer type (s).
- Create a customer profile using a cross-section of your customer types.
- Generate hypotheses from the data.
To identify your ideal customer,
You can use data mining to group customers based on their purchase habits and other variables to determine the characteristics that make a potential customer a good fit for your products or services. Cross-referencing this information with customer service records will allow you to target those most likely to be a good fit for your company.
Build a marketing and sales plan tailored to each segment. Use data to determine how to approach each group’s unique needs and interests. Then try out different tactics until you have the best one for each segment.
There are a few different approaches to customer segmentation. Some companies focus on a single group of customers, such as a niche market or a defined customer set.
1-A Multi Segmentation strategy
This is an approach that concentrates on customer segmentation and targets multiple micro-segments. Companies may choose to target either two or more customer segments at the same time or just one.
2-A differentiated strategy
A segmentation strategy that targets a customer’s multiple segments at the same time.
A multi-channel strategy allows a brand to reach customers in more ways than one. It’s an excellent way to expand a brand’s horizons and offer more products, services, or variety.
Hyper-segmentation
Hyper segmentation is an approach to segmenting a customer base that involves combining several segments. This may be useful if your business manages many customers or targets specific group segments with very different needs.
Leverage email marketing software
Email marketing is a powerful technique to reach particular consumer groups and service customers. Email marketing software monitors different data points associated with client activities and generates content based on those actions. You can target consumers using email marketing based on their demographics, online activity, product use, and purchasing history, among other things.
Take advantage of Digital Platforms.
In today’s digital world, the path to investigate is unlimited-from Google and Facebook to Twitter and Pinterest. You can use their vast databases to view insights on specific groups of customers.
Benefits of Customer segmentation:
1-Better understanding of customer needs
The heart of the contemporary business model is an understanding of customer needs. If companies wish to succeed, they need to be flexible and agile in their approach to customer wants and needs.
2-Increased revenue and profit
The power of segmentation to improve products and services and drive increased profits is a well-known fact. Williams Sonoma shows this by demonstrating how its customer segmentation improved its revenue and profit.
If you want to grow your customer base, you need to know who your current customers are. Then, identify which segments of those customers should receive your products and which ones do not.
3-The Power of Effectiveness
Segmentation analysis will allow you to achieve a better completion of your company’s business goals.
You can select the most suitable leads and improve your lead management and ROI, allowing you to capture higher profits.
4-Advanced marketing strategy
Client segmentation is critical for developing an effective marketing plan and meeting marketing KPIs. A marketing message tailored to particular segments, for example, results in higher response rates and conversions.
A segmentation analysis identifies the attributes of long-term customers. Loyalty services, for example, are effective at retaining various client groups.
