Studies have shown that market segmentation is one of the best ways to personalize your marketing and help you to learn about your customer’s behaviors. If you’ve ever wondered how you can make segmentation work for you, check out the info below.
While market segmentation sounds complicated, all it really means is the process of separating your target market into different groups based on things like demographics, location, needs, and other behavioral attributes. This technique is helpful for both direct mail and digital. We’re not the only ones who swear by segmentation - companies like Best Buy and American Express use this technique with their marketing.
As aforementioned, segmentation helps with providing a more personalized experience for your customers, but it’s beneficial for your business too. Segmentation allows for better response rates, lower acquisition costs, and higher customer engagement. With market segmentation, you can hone your marketing messaging. If you’re looking to only reach your female customers, market segmentation can help. If you want to run a Facebook ad and target only individuals within fifteen miles of your business, segmentation can help. If you only want to reach customers whose behavior shows they are interested in things like budgeting or personal finance, market segmentation can help.
There are a few ways to make segmentation work for you. First, it’s important to do your research on your customers to learn more about them. Then, you can determine how you will segment your customer information through things like demographics, geographics, or behavior. Next, you can create your segments - while we recommend using software to help automate this process, you can also handle it manually. Finally, the time has come for you to test your segments to be sure they are usable. You might need to define, adjust and test a few segments first before you achieve success.
Creating segmented data lists can help your marketing be more personalized and effective. For more tips about marketing segmentation and how to make it work for you, contact Darwill today.