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Four Effective Ways To Segment Your Customers And Why You Should Do It

When targeting your audience, it’s important to know exactly who you’re trying to reach.  Once you know  your ideal customer, you can begin to market to them more effectively.

Market segmentation allows you to target your marketing and products to the right people rather than blanket selling to everyone in the same way. This increases the chances of people engaging with your advertising, helping it to be more effective.

There are four main methods of market segmentation, and we will introduce you to all four below. Plus we round off this  business blog post will a plan of action so you can work out your market segment.  

Market segmentation is an important part of any business strategy. It helps companies understand which customers will buy their products and services, and where they should focus their marketing efforts and you can learn more about the value of market segmentation when you read verfacto’s article here.

4 Main Categories of Market Segmentation

There are four main categories of market segmentation including:

  • Demographic
  • Behavioral
  • Geographic
  • Psychographic

Demographic Segmentation

Demographic segmentation is probably the most important form of segmentation. This means splitting your market up by things like age, sex, occupation, income, race, nationality, or other large categories.

Segmenting a market by demographics is the most straightforward form of customer segmentation. Combining this with other types of segregation can help you to narrow down your market even further. This kind of segmentation is straightforward and easy to apply because the information required is relatively easily accessible and affordable to obtain in most cases.

Behavioral Segmentation

As well as demographics, it can be valuable to segment your market based on consumers’ behaviors, especially the behaviors specifically relevant to your products and services. Dividing your audience up into categories based on behaviors they exhibit allows you to focus your advertising on those behaviors. The most important actions to track are those that relate to how customers interact with your brand.

Behavioral segmentation is useful because the data involved is directly related to how a customer interacts with your brand. Because of this relevant information, working with this data allows you to market more effectively to them.

You can collect behavioral data through a number of sources, including cookies placed on your website, the purchase data of your customers, and purchased third-party data collections.

Geographic Segmentation

Geographic segmentation is a useful segmentation strategy. A customer’s location can help you to understand their needs and tailor your advertising better.

Dividing a market up by location is vital if you need to target an ad to customers in a specific area, such as if you are advertising a local business. It also allows you to tailor your messaging according to regional differences in languages, interests, and culture, as well as the various different needs of people located in different regions. 

Psychographic Segmentation

Psychographic segmentation may sound complicated, but it is actually similar to demographic segmentation, albeit dealing with features that are mental and emotional. These may not be as easy to identify as demographics, but this can provide a valuable understanding of your audience’s needs and preferences. Understanding psychographics can help you to create materials that appeal to your audience more effectively. Psychographic characteristics include features such as personality traits, interests, lifestyles, values, and attitudes.

Psychographic data can be gathered in many of the same ways as demographic data. You could directly ask your existing customers for this information using surveys, for example. You can also use website analytics to examine the ways people interact with your website and identify the types of content they engage with.

How To Work Out Your Market Segment

See here  for the steps and questions to ask to get the right data for formulating a market segment.


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