How to Do Audience Segmentation

Audience segmentation is a simple marketing approach that involves identifying distinct subgroups within your primary target audience to deliver more relevant advertisements. A one-size-fits-all approach in marketing seldom considers your consumers’ unique preferences and needs. Thus, your message may get lost in the crowd.

“Blanket” advertising or marketing, on the other hand, has been proven ineffective by both research and experience: You can’t sell everything to everyone. There is no sales growth without dividing your audience into separate segments. You can create more precise messages with an audience segmented based on demographics, behaviors, or buying personas. This marketing strategy has been designed to end ineffective efforts that do not align with your audience.

This post will help us understand the six different ways to do Audience Segmentation.

1. Create personas for your ideal customers.

2. Determine the factors that distinguish personas.

3. Examine the available client information.

4. Use surveys or customer feedback to collect more data as needed.

5. Check that the client data used as segmentation criteria is available in the messaging platform.

6. Use the given criteria to segment the audience.

1. Create personas for your ideal customers.

The first step in creating personas of ideal customers for audience segmentation is to determine a core set of demographics. The primary indicators are age, location, and gender. Other factors to consider include income, education, occupation, and marital status.

Apart from these data, you also need to develop your personas by looking at their preferences, behavior, and affinities.

A detailed customer profile and persona reduce the risk of serving irrelevant content. Combining these characteristics with an eye for the channels and platforms ideal for reaching a particular demographic will assist you in getting more targeted campaigns.

2. Determine the factors that distinguish personas.

The second step is to identify a set of distinct factors that differentiate your personas from one another. It will help you better tailor your marketing messages to each group. Factors to consider include interests, needs, and pain points.

For example, if you are selling a new type of product, you will want to target your advertising toward people interested in that product. If you are selling a service, you will want to target your advertising toward people who need that service. And if you are selling a solution to a problem, you will want to target your advertising to people who are experiencing that problem.

3. Examine the available client information.

The next step requires you to check what information is available on your clients. It will help you determine what type of segmentation would be most appropriate for your business. Try to review audience information such as the following:

  • Demographics: age, gender, income, education, occupation
  • Psychographics: interests, needs, and pain points
  • Behaviors: online and offline buying behavior
  • Other information as appropriate

4. Use surveys or customer feedback to collect more data as needed.

If you need more information on your target audience, you can administer surveys or collect customer feedback. It will help you gather data on demographics, psychographics, and behaviors.

The secondary study is helpful but limited. Existing inside sources may not provide the answers you require, and external resources are not tailored to your target audience.

Because of this, business uses tools for primary research to solve both problems and provides a more comprehensive picture of their target audience. There are two primary types of audience research: 

  • Qualitative – This sort of study is helpful in categorization, so it’s easier to segment.
  • Quantitative – This study may appear less critical for segmentation, but it is crucial for comprehending your consumers’ issues and intentions.

An essential approach in these two categories is survey research and customer interviews. These two complement each other and provide a holistic view of your audience.

5. Check that the client data used as segmentation criteria is available in the messaging platform.

After you have gathered all the necessary information on your target audience, you will need to check that the messaging platform you are using can segment your audience according to the criteria you have selected.

Needs-based audience segmentation allows you to get to the core of what your audiences want and how to differentiate your offers. Most companies have many products for various types of customers, so understanding the multiple uses people may have for your goods or services is an excellent method to perform this segmentation.

This method also aids in the discovery of new groups that have similar needs.

6. Use the given criteria to segment the audience.

The final step is to use the criteria you have selected to segment your audience. It will allow you to target your marketing messages more effectively and reach the people who are most likely to be interested in your product or service.

When segmenting your audience, it is crucial to remember that you should not create too many segments. Creating too many segments can make it challenging to target your marketing messages effectively.

It is also important to note that your segments should be based on factors relevant to your product or service. Segments not relevant to your product or service will not help target your marketing messages.

Keep these tips in mind when segmenting your audience, and you will be able to reach the people who are most likely to be interested in your product or service.

What is Audience Segmentation?

Segmenting a target audience is the process of clustering individuals with similar traits. In most cases, this is accomplished by enterprises to assist them in improving their targeting.

This marketing technique involves breaking the target market into smaller, distinct segments. It enables businesses to conduct more defined market research on their customers. Researchers may learn consumer experience insights, product development techniques, suggestions for improving customer loyalty, and more by segmenting the audience.

What is the Objective of Audience Segmentation?

Audience segmentation aims to bring focus to the company’s marketing strategy. You can determine what marketing tactics to use and where to allocate your resources. The goal is to understand the target market better so your company can provide solutions to their needs.

Audience segmentation is a move away from broad targeting. It is a way to focus on smaller groups that show potential for your product. For instance, when you try to cover all aspects, you are less like to relate to anyone. Potential customers will feel that you don’t understand, appreciate or serve their needs. But when you segment your audience and send them targeted messages, you become more appealing to your specific market.

What are the Benefits of Audience Segmentation?

Many benefits come from audience segmentation. It helps define your best customers, discover new opportunities, and create relevant messaging for your audiences.

Define your best customers. Most of the time, a segment of your client base is responsible for a disproportionately large amount of the income. Slack, for example, gets 40% of its revenue from less than 1% of its clients. By defining the segments, you may look for more consumers that match that description.

Discover new market possibilities. Identifying your best customers may bring out options you didn’t consider. Take Pedialyte, the adult dehydrated nutrition drink that saw a 60% boost in usage from 2012 to 2015, for example, since people nursed hangovers. They eventually launched a sparkling drink in 2018 to better target that demographic.

Create more focused and relevant messaging. When you advertise to everyone, your messages become meaningless and are quickly forgotten. You may understand what each part of your audience requires from you by segmenting them and providing solutions that specifically address their issues. For example, Nike will speak differently to athletes, sports enthusiasts, and people who like to wear athletic clothing for comfort.

What are the Different Types of Audience Segmentation?

There’s a lot to learn about each consumer in your audience. Knowing how each factor contributes to the bigger picture and aids in delivering your message is helpful. Here are the types of audience segmentation that you can use:

Demographic Segmentation

The most popular technique of segmenting an audience is based on demographics. These can be measured with a multiple-choice questionnaire, inquiries, and (usually) are separated into various segments.

Some standard demographics are gender, age, education level, and relationship status. Geographical segmentation is a fourth category for data scientists, although we believe it belongs under demographics.

Psychographic segmentation 

A psychographic segmentation (attitudinal segmentation) can help you better understand your customers. Not only do psychographics influence a customer’s purchase decisions, but they also reveal that person’s narrative and provide the groundwork for meaningful communication.

Traditionally, psychographics was divided into activities, interests, and opinions (AIOs for short). You can learn about AIOs by asking your customers questions or looking at their behaviors.

For example, suppose you’re a fashion brand. You may find that your target market segments are people who are interested in trends, shop online, and believe that clothes reflect their personality.

Behavioral segmentation 

Behavioral segmentation is the most suitable type of segmentation. It’s directly linked to how your consumers think about (and interact with) your product and marketing.

It’s challenging to capture some of these signals accurately, but thanks to analytics software and machine learning, it’s gotten a lot easier. We have data on everything from the first impression to the conversion and sale, as well as activity into meaningful behavior patterns, thanks to the use of appropriate software.

What are the difficulties in audience segmentation?

Segmentation of audiences is only as strong as the data that creates those segments — so data quality is critical to a successful customer engagement plan.

It isn’t easy to guarantee that your data is correct and up to date. Information like job title and company size can frequently vary for demographic data. Still, if collected incorrectly, behavioral data may be highly deceptive when attempting to gather contacts based on their activity.

The problem with keeping accurate information is that it may be found in various silos throughout an organization. Your CRM probably contains up-to-date details about a contact’s job title and purchasing interest. Your email marketing system may include data on open and click-through rates for your emails. And the activity of your online users may be tracked by your product analytics tool.

However, if these tools and data are not linked, it will be challenging to construct segments of your audience that may assist you in engaging with them in a focused, meaningful way.

A customer data platform may help you overcome these difficulties and lay a solid groundwork for your segments.

How Can Audience Segments Be Effective?

To ensure that your audience segments are effective and function as expected, you should observe the following practices on how can audience segments be effective.

  • It should be measurable – You should be able to measure how successful your segments are. It will help you determine whether you need to make changes to your segments or not.
  • It should be accessible – All the necessary data for your segments should be easily accessible. Always ask whether there’s a demand for the type of product or service your company wants to offer, then define how many potential customers and consumers are in that market.
  • It should be actionable – The segments you create should be actionable. It will help determine how different target markets can be reached and how to make advertisements more lucrative.
  • It should be substantial – Your segments should have clearly defined customer profiles with accurate data on their age, socio-economic status, and purchasing power.
  • It should be differentiable – Different target markets should be treated differently when it comes to marketing. If a company targets only one sector, this may not be as significant.

Is There a Tool for Audience Segmentation?

Yes. There are tools for audience segmentation. You can find free and paid analytics tools that will allow you to segment your audience according to various criteria.

Some of the most popular audience segmentation tools include:

Google Analytics

Google Analytics – Google Analytics is a free web analytics tool that enables you to segment your audience according to various criteria, including location, device, browser, and more.

Mixpanel – Mixpanel is a paid tool that allows you to segment your audience according to a variety of criteria, including actions they’ve taken, events they’ve triggered, and more.

KISSmetrics

KISSmetrics – KISSmetrics is a paid tool that enables you to segment your audience according to various criteria, including location, device, browser, and more.

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