Audience segmentation involves dissecting your market based on specific criteria to make sure that your ads reach the right people at the right locations.
But audience segmentation has swiftly developed since the advent of the digital age. The approach based on demographics is used to provide the biggest glimpse into the person buying from them, whether male or female, what old they are, and their permanent address.
Nowadays, users are glued to using their smartphones, laptops, tablets, laptops and wearable fitness bands, and more with a variety of browsers, apps, email, and others.
Knowing a person’s gender and age isn’t enough to give insight into how they spend the day and their consumer habits, personal preferences, specific needs, or wants.
What Is Audience Segmentation?
Audience segmentation is the process of dividing your entire audience into segments — groups that have something in common, like gender, age, location, interests, behavior, etc., to better tailor your marketing offers, ads, and products.
Types of Audience Segmentation:
Audience segmentation is usually separated into these major groups.
1 : Demographic Segmentation
It’s probably the simplest method of segmentation. Demographic segmentation is a way to account for the demographics of your audience. They include:
- Marital status
- Family size
- Earnings and the occupation
The demographic segment typically overlaps with needs-based and geographic groups, as we will explain in the following section.
2 : Psychographic Segmentation
In the same way, psychographic segmentation studies psychological influences. This includes:
- Values and interest rates
This type of analysis overlaps with or at most helps behavioral segmentation.
3: Behavioural Segmentation
In contrast to the two above types, behavioral segmentation concentrates more on the behaviors associated with marketing and products. Behavioral segmentation, therefore, focuses on the following, as the name suggests:
- Behavioral patterns
- The online activity and the preferences
Then you could delve into the exact marketing outreach practices to help improve the segmentation of your target audience.
Additionally, many marketers use more segmentation criteria, such as the ones below.
4 : Geographic Segmentation
This kind of analysis focuses on unique geographic aspects, which range from country-based to purely location-based. Geographic segmentation can cover everything from the conventions of English-speaking nations to local aspects such as celebrations.
This kind of overlaps the term local Search Engine Optimization (SEO).
5 : Technographic Segmentation
SEO Technographic segmentation aims to differentiate further viewers based on technology usage and ownership.
This kind of segmentation was developed in 1985 by Dr.
Edward Forrest, exploring the videocassette recorders (VCR) ownership. In the modern marketing world, this kind of segmentation is based on mobile and desktop devices, software, and other identifiers.
6 : Needs-based Segmentation
However, needs-based segmentation can have the potential to conflict with other segments. Instead of focusing exclusively on behavior or demographics, it stratifies groups based on their perceived need.
It can complement other segmentation types by recognizing that certain demographics have similar needs or expanding their boundaries.
Perfecting Your Audience Segmentation: Reviewing the Benefits
1: Lead Acquisition through Targeted Outreach
The first and most important thing is that audience segmentation can enhance lead strategies for acquisition. This is why various methods of outreach work with different groups.
This is why audience segmentation can guide the methods of lead acquisition, such as:
- PPC ads
- Marketing via social media
- Email marketing
Engaging with the social media audience specifically relies on the segmentation of audiences to accurately pinpoint and target your best audience. This makes your marketing more cost-effective and leads to lead generation, which can result in higher conversion rates.
2 :Increased Conversions through Personalised Messaging
Regarding the conversion rate, segmentation of audience’s permits hyperfocused, personalized, or targeted messages. Take, for instance, marketing via SMS; studies show that it performs better than marketing via email by x7. But, it is essential to have the right timing to ensure that responses are received, and both email and SMS outreach can benefit from personalization.
Therefore, audience segmentation lets you determine the key elements that influence conversions.
- Which segments show more frequent responses, and what channels and tones would they rather use?
- What if their needs will outreach be able to address?
- What could be the value of an effective conversion?
Furthermore, personalization is the mainstay of many marketing strategies. It improves the overall experience and increases trust and loyalty.
3: Higher Retention Rates Through an Improved Customer Experience (CX)
After discussing the customer experience, it’s vital to know how segmentation can improve customer retention rates. Customer retention is an essential measure in and of itself, taking into account its impact on:
The cost of acquiring a new customer is about 5-7 times more expensive than keeping an existing customer.
Customers who have recurring customers have more purchases with greater value.
Customers who are loyal to them tend to recommend their friends and relatives.
The findings and other research on retention of customers prove it’s an important, worthwhile target. Audience segmentation is an ideal match for this since it includes the following:
- Personalizing the customer experience
- Enhancing the CX throughout the sales funnel from acquisition to conversion.
- Enhancing customer service and engagement post-purchase
5 Practical Ways to Perfect Your Audience Segmentation:
1: Segmentation needs to be practical
Segments must be adequate in size to make focusing on them worthwhile and also be able to respond to your message. Too many segments can also cause you to be overwhelmed by your strategies.
If you have too few, it will not provide the granularity you require. A range of five to eight segments is likely to work the best.
These segments must also be mutually exclusive to develop coherent strategies and build lasting connections. Each person can only be in one segment.
2: Segments must be discernably different.
When you segment your target audience (or your potential viewers), the first step is to ensure your segments are distinct in their requirements.
If one segment doesn’t have distinct characteristics from the other or they respond the same way, you’ll end up having homogenized strategies, which is not the goal of segmentation.
3: Do not confuse behavioral clusters with segments.
The Box Office has detailed data regarding behavior patterns (performances chosen, seat selections as well as frequency, party size, planning horizons, geographical location, and more).
This is just what your groups are currently doing. It doesn’t explain why they’re doing this. People can move clusters however they shouldn’t often segments.
For a successful experience, segments must be defined by the goals each hopes to get from experience.
4: Use attitudinal segmentation
Many C2DE families have the same motivations and needs and motivations, and the same holds for BAMEs or ‘young people.
Utilizing demographics as a base to create a segmentation system allows an easy evaluation, but it doesn’t provide all the information you require to help you plan. Attitudinal segments provide you with profound insight into your target audience.
Understanding their motivations, how they would like to feel, and what drives their participation allows you to pinpoint and successfully focus on groups of people with common values.
This allows you to influence their behavior and create highly satisfying experiences.
5 : Explore Different Channels
In the end, you might look into using different channels to deliver your message. This can increase your reach but also assist in the selection of the criteria for segmentation.
Psychographic, behavioral, and Technographic segmentation will give you an idea of your audience’s preferences for their preferred channels.
It is possible to utilize your main Social media site to poll viewers on the channels of their preference. You might discover blog posts, YouTube videos, or other channels that better connect with them.
In conclusion, segmenting the audience is the key to an effective marketing campaign. If you can identify your ideal client and their needs, you can craft messages that resonate with them and thus increase sales.
There are various ways to enhance how you segment your target audience. You can use tools for analytics like CRM, boost search engine optimization, or participate in mapping the customer journey.
Also, you can re-evaluate the criteria you use to segment your audience to ensure that you do not overdo it in either direction and investigate different avenues. What you should do will depend on your specific requirements and goals, but the art of defining audience segments is something worth striving for.
FAQ: about Audience Segmentation: How to Identify Your Ideal Customers
How do you decide which customer segment to target?
A well-defined market segment should be able to be identified (or distinct). It is necessary to identify the market segment in terms of the descriptive aspects (geographic, psychographic, and demographic) or behavioral aspects (consumer response to advantages, use occasions, or even brands)
Why should you segment your customers?
Customer segmentation is among the most effective marketing tools available since it helps businesses to comprehend their customers. This is because it categorizes customers based on common characteristics. These groups can be used to construct an overview of the customers.
What is the basis for segmenting the customer?
The five primary types of segmentation include one of the most common types: demographic (population statistics) and geographical (location), as well as psychological (personality and lifestyle) benefits (product attributes) and volume (amount spent). Businesses can segment their markets according to the location, volume, or benefits, similar to consumer markets.
How do you identify an ideal audience?
- Begin with your existing customers.
- Think about benefits, not features.
- Gather demographic information on the people you want to reach.
- Send out surveys to your customers.
- Find trends in online feedback from customers.