The trends in Digital Marketing keep changing - the obsolete techniques fade, and the effective ones make their way in. One such tactic is Customer & Market Segmentation. This method enables businesses to follow a more personalized approach to Digital Marketing. It lets the marketing teams better understand the customer's preferences that translate to a quicker buying process.
We will discuss in detail about Market Segmentation in this article. After reading, you'll be in a better position to include it in your Digital Marketing Strategy.
What Exactly is Market Segmentation?
Market segmentation is a process of splitting a massive homogenous market of potential buyers into easily identifiable sections. Marketers define the possible need for a product or service and demographics. Based on this (and other similar criteria), customers are segregated into groups. All the customers falling in a particular segment must have the same needs, demands, and interests.
Need For Market Segmentation
Most businesses lack the resources to target an entire market. Also, targeting specific market segments allows them to understand their customers better and run targeted ads. This ropes in better ad-conversions and high return-on-investment.
Types of Marketing Segmentation
1. Behavioral Segmentation
Customer behavior is an important factor in Digital Marketing. How they interact and engage with Marketing efforts is important for your business. This is why it becomes also important to segment customers who highly engage with the company's marketing efforts.
The various behavioral metrics include:
What requirement is a consumer trying to fulfill?
All the website-actions of a customer
What is their online buying pattern?
How strong can they recall a brand if they need a product?
This data is important because it's directly linked to how a customer engages with your services or products. So, it becomes easy for marketing teams to fine-tune their efforts based on customer behavior.
2. Geographic Segmentation
Marketers can segment the market based on location. While it may sound like a normal segmentation, it can emerge crucial for marketing efforts. The needs of people vary with location. For example, air conditioners in Serbia are irrelevant, just like room heaters in the Caribbean reigon. For businesses whose products cater to various demographics, this segmentation is important.
However, Marketers need to keep the "language-factor" in mind while targeting diverse geographic segments. As obvious as it may sound, German ads might not do well in Spain.
3. Psychographic Segmentation
This type of segmentation is an extension of demographic segmentation. It takes the mental and emotional attributes of customers into account. More specifically, it segments customers based on their values, lifestyle, personality traits, and attitude.
Emotions play a big role in online transactions. Many online marketing specialists believe that sales and customer-relationships will improve if you attach emotions to your products. Every product is created to make the lives of people easier. Brainstorm with your team, create ads that touch the emotional chord, and target the Psychographic Segment to see amazing conversions.
Benefits of Marketing Segmentation
1. Greater company focus
Businesses can identify and shortlist particular segments that match with their products or services. Instead of wasting their time and resources in understanding the entire market, they can analyze the behavior of a particular segment quickly. Then they can target that segment through appropriate ads of products. It will lead to higher conversions and more sales.
2. Market Competitiveness
Focusing on a particular segment increases the market competitiveness of a business. They create products to cater to a specific audience and increase their chances of becoming a market leader. This not only leads to increased ROI, but brand recall also increases.
