Market segmentation definition
You might be wondering what market segmentation means, market segmentation is the process of dividing segments of the market or your audience lists up by geography, psychographics, buyer behaviour, interests and likes.
You can segment whatever data you have even further in order to create valuable segments that comne together to show you valuable informnation that you can use to your advantage in business.
These segments in marketing are typically composed of consumers who will respond similarly to marketing strategies and who share traits such as similar interests, needs, or wants.
Why Marketing Segmentation is important in marketing
Marketing segmentation allows you to create and run campaigns that are actually valuable and engaging to consumers.
It allows you to increase your conversion rates and actually gain better engagement from consumers online or offline.
What happens without marketing segmentation?
Without segmentation you run the risk of displaying content and campains that appeal to a smaller percentage of users and have lower engagement and conversions.
You also run the risk of wasting ad-spend, resources and time.
People are diverse and so are their needs.
How many times have you seen an ad that doesn’t appeal to you? It’s a waste of ad-spend and budget.
Now how many times have you seen an ad or content that really speaks to you, really engages you and tempts you to click or read more?
With segmentation, that’s idealistically what we are trying to achive
How to identify market segments
Start with whatever softwares you current use that collects customer data.
Have you got an email marketing software? Perhaps you use a eCommerce platform such as Shopify to make sales?
Have you segmented your email lists, sales crm data, and whatever else you have that collects data about your customers?
The way to achieve higher conversion rates, make more sales and increase your profits is through segmentation.
Any business that wants to get serious about growth, needs to set up a proper foundation, and that involves segmenting customer data.
Only then can we create that next level of personalisation and increase our conversion rates and sales.
“It’s not as difficult as it sounds, and when set up properly it makes all the difference in your marketing campaigns.”
Simply go into your sales crm software, and export a list of the people who purchased from you six months ago, but not since.
All of a sudden, you’ve created one segment.
You can create as many segments as you like, and be as particular as you like, depending on the data you’ve collected and the software you are using.
The kind of information you gather on a user (demographic, region, purchasing habits, etc.) determines the level of personalisation that you can use.
How well are you segmenting your current audience lists?
As business owners and marketers, we want to be collecting accurate data on our customers so that we can run successful marketing campaigns that really connect with our end users.
If we have no information about the user, how would we send useful follow up campaigns, reccomendations and offers?
This data collection subject is a delicate one, but I believe we could be using it in an ethical manner in order to serve our audience.
Only then can we create advertising campaigns and content that really appeals to a user based on the stage of the buyer’s journey that they are in…
Market segmentation examples in retargeting campaigns
- Retargeting based on the last items they viewed on our site and store.
- Setting up re-engagement campaigns based on the last time they purchased from us.
- Retargeting them on social media via ads, and showing them items that they abandoned in their shopping cart, and offering them 20% off to come back and purchase now.
- Retargeting those who interacted with our social media marketing campaigns but did not convert into sales or customers
Segmentation allows us to nurture, educate and provide value in a personalised way that is relevant to a user.
We want higher conversion rates, repeat sales, and an engaged audience that comes back to make repeat purchases.
Personalisation is key in marketing, and knowing who your target audience is, what their pain points are, what they like, what they want, what they don’t want is crucial
Market segmentation examples in email marketing
We could send out an email campaign to everyone who purchased protein from us 3 months ago, with an offer to purchase the new protein we have in stock, because we know they will be running out of protein they purchased 3 months ago…
We know what they purchased last, we know when, and we can make suggestions based on the data that we have on them.This helps us stay top of mind, relevant, and increase our conversion rates due to the personalization efforts that we made.
You can also run this campaign on social media as well so you can reach consumers on multiple platforms, that’s actually more effective.[wp_subscription_forms alias=”post_subscribe_form”]
Set up a segmented marketing campaign for higher conversions now
Want to run some campaigns that are segmented, and to increase your conversion rates and sales?Let’s discuss what strategies you currently have in place that helps your business segment and engage.
Let me show you some opportunities that you could take advantage of, and what type of campaigns would drive traffic and sales for your business.
Schedule in for a discovery call, and let’s discuss your current marketing strategy now
Letisha Malakooti, Black Sheep Cyber Building Empires Out of Dreams @Letisha_Malakooti