Audience segmentation: one of the keys to boost your sales
- November 15, 2021
What is market segmentation?
Market segmentation consists in categorizing consumers into groups or segments according to their characteristics.
Consumers are divided based on certain criteria or characteristics that lead them to have the same needs when it comes to products. That said, segments are built based on consumers who will respond similarly to certain marketing strategies.
Why is audience segmentation important?
- Market segmentation allows you to plan campaigns more simply and effectively, as it helps the company focus on certain consumer groups rather than trying to focus on the market as a whole.
- It helps marketers to be more efficient when it comes to time, money, and other resources.
- Segmentation also allows companies to have greater knowledge of the needs and desires of consumers, in order to tailor campaigns to the segments that are most likely to buy their products.
Types of segmentation
There are several types of segmentation, including:
- Demographic segmentation: this is the most common type of segmentation. The audience is divided into age, gender, occupation, education, income, and nationality.
- Behavioral segmentation: this is a type of segmentation that is based on consumer behavior. By dividing consumers based on their behavior, it is possible to create a communication that suits them. To do this you should pay attention to certain behaviors:
– What actions have been carried out on the website?
– What are their behavioral habits on the website?
– How loyal are they to your product/brand?
– How usable is your product?
– What needs are consumers trying to satisfy? - Geographical segmentation: this segmentation consists of dividing the market based on location. By knowing where your consumers are located, it is possible to create ads with specific locations.
- Psychographic segmentation: it is related to emotional and mental attributes. This segmentation divides consumers through their personality traits, values, attitudes, and lifestyle. By understanding the psychographics of your consumers, it is possible to develop content they identify with.
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Sell more through segmentation
These are the benefits you will get from a good segmentation of your audience:
1. Improves campaign performance
Market segmentation can help you improve the performance of your campaigns, as it helps identify the right people and the right messages.
Targeting a segment that may have more interest in your product is much more effective than trying to focus on a general audience. When advertising to a general audience, the financial investment will be much higher and conversion will be much lower. On the contrary, if you invest in a specific market segment, the conversion number will increase significantly.
2. Helps you reveal new areas to expand into
Through segmentation, you will also be able to identify new segments that are not currently in your area of operation, which allows you to expand more easily. By analyzing your data, you may discover interests that you had not yet identified as being of your consumers.
3. It allows you to develop products that are dynamic:
Segmentation will help you develop products that meet the needs of your consumers. In this way, you can develop products according to your main market segment’s needs and design other products according to other parts of your consumer base.
4. Helps you to increase your focus
A brand that tries to please everyone’s interest and pleasure usually ends up becoming commonplace and unremarkable, and can also lead to consumers becoming a little confused about what the brand represents. As such, segmentation can help you stay focused, and build a brand identity that really makes sense for you and your company.
5. Market competitiveness
When your company focuses on a specific market segment, its competitiveness increases, which leads to a higher ROI. By focusing on a segment, your company has greater knowledge, learning details about the segment in question and building products that fit.
Learn about other types of targeting: Audience lookalike – the best way to optimize digital campaigns.
As we can see, segmentation adds real value not only for your company but also for your consumers. Through segmentation, you can design marketing campaigns that are more focused on your target audience. As segmentation is built, you will learn more about your consumers and the appropriate ways to communicate with them and improve your message, mission, and recognition.
