WHY DOES SEGMENTATION MATTER?

Is your product suitable for Millennials? Will the generation of our parents use a new Samsung smartphone? These questions are essential if you want to deliver it to the right person. Execution of any marketing strategy starts with a clear understanding of who your target audience is.

A target audience is a group of people who are most likely to buy and use your product or service. These people might share similar demographic qualities like age, income, family size, gender. But also you can reach people who have similar purchase habits or lifestyles.

When you know your target audience, you can move to the next step and divide it into smaller segments. This process is called segmentation. For instance, if your product is a dating platform, your target audience may cover single people from the whole country. So, creating more specific segments will help to learn customers' preferences. How to divide the audience?

Marketers use traditional characteristics to identify market segments:
  • Demographics
  • Psychographics
  • Behavioral preferences
  • Geographic segmentation
  • Technical knowledge
  • Product expectations
Demographic segmentation is a primary method of classifying the audience into smaller groups. It sorts the audience due to such demographic characteristics as age, gender, education, income, family size, nationality, etc.

Psychographic segmentation helps to target the audience with the help of psychological traits. It includes personality characteristics, values, opinions, and interests. As for dating apps, you might create a well-targeted email campaign according to a particular age's interests. For instance, use the celebrity endorsement technique - adding a famous singer among the age generation Z.

Behavioral segmentation is based on customer behavior and decision-making patterns, e.g., consumption preferences, lifestyle, or purchase habits. It is crucial if your target audience is broad and accounts for different age groups. For instance, millennials tend to spend more money on taxis and Uber than Gen X. So, millennials would be a better market segment for taxi providers.

Geographic segmentation forms the segments based on users' locations. The customer's purchase behavior depends on the climate they live. Knowing the geographical location helps to choose the right time zone while setting a campaign with email marketing.

Technical skills inform us about what device customers use to leverage your service. It is an essential factor for email marketing platforms as we can adjust the emails to desktop or mobile devices.

Product expectations describe the goal customers aim to achieve with your product. Which problem will your product solve? Sendios is a marketing retention platform that helps clients engage customers with email marketing techniques and boost leading product metrics. So, we want our clients to be satisfied with the results.

Why does segmentation matter?

Dividing your target audience into smaller groups will make your marketing efforts more efficient. The brands that leverage segmentation experience a 760% increase in email revenue. At Sendios, we sort users into particular subgroups as it enables us to:

  • Focus marketing efforts on techniques that work
  • Optimize user experience
  • Discover the most appropriate audience
Talking about marketing efforts, we test different email communication approaches with a particular segment and choose what brings better results. One message can be sent in five variations. The differences might start with the greeting at the beginning of the email and end with a different layout. At the end of an A/B test, we learn users' preferences and receive highly personalized content.

The first benefit directly translates into the second one - user experience. Understanding the segments helps satisfy their needs better, offer the value they expect, and improve engagement rates.

Finally, yet importantly, targeting different segments teaches us what the customers expect from the service and hints us with valuable insights to reach our service.

Your customer is your key to success! Segmentation is an essential tool marketers use to describe the audience and deliver your brand's message to the right customer. The better you know the segments you aim to reach, the more successful marketing campaigns you will create.