Don’t Waste A Cent, Segment.

Leila Vakili Blog topics, DatabaseUSA Services

Don’t Waste A Cent, Segment.

Customer segmentation allows you to target a specific audience and tailor your message. Optimize your marketing spend and segment your list.

segment data

Dividing the Audience: A personalized approach to your marketing

Customer and audience segmentation is an important strategy for marketing professionals and digital marketers. It makes it simple to personalize campaigns for different types of people and can help you save time, money and energy by targeting segmented groups uniquely and with more accuracy and purpose. If you aren’t utilizing customer and audience segmentation, you should be, and here’s why…
 

Divide & Conquer

When you divide your audience based on certain key characteristics, you can personalize your campaigns. This has been proven to increase the chances of conversions as opposed to a general campaign that targets all of your customers in the exact same way. Not only does it make your campaigns more cost-effective and efficient, but it also reduces some of the risks associated with broad-based campaigns.

There are four types of market segmentation for customer marketing, they are as follows:

  • Demographic Segmentation
  • Behavioral Segmentation
  • Psychographic Segmentation
  • Geographic Segmentation

Segmentation in Real-life

Let’s visit what types of customer segmentation there are, and what each segment means in a real-life scenario. Here are some examples of companies, and how they utilize the four types of segmentation listed above.

  1. Typically, fast food chains use demographics-based market segmentation. They group their audience by age and direct their ads to various segments through well-tested marketing channels. For kids, these channels would include kid-focused television channels, children’s programming on YouTube and game applications/apps. While adults may receive their marketing through television ads, radio ads, and programming centered around adult viewers.
  2. Amazon, on the other hand, uses behavioral segmentation. They use the behavior and habits of Amazon visitors and consumers to decide how they will market to them. Most of the time the segmentation is based on past purchases and browsing history. With each new page you visit or purchase you make, they alter their approach on how they market to you. How do they do this? They segment their web visitors with site cookies, dispatched to follow your browsing history and utilize remarketing strategies, email marketing, and social media marketing once you leave their site. Their bet is that they can influence your purchase decisions based on your personal patterns and habits.
  3. Cadbury Chocolate Company uses psychographic segmentation for its marketing. For example, the Cadbury “Bourneville” line and “Temptation” line of chocolates are meant for higher-income groups. On the other hand, the Cadbury “Silk” line is meant for those who can’t resist chocolates but also can’t afford to pay more for “luxury chocolate”. Psychographic segmentation allows them to roll out campaigns to target each group separately.
  4. Casey’s General Store segments to customers according to where they live. They are a perfect example of geographical segmentation. Their marketing agenda is to connect to customers who live in Midwestern rural towns via television ads, mobile applications/apps and radio ads. Casey’s recent advertisements feature the slogan “Casey’s, Famous for Pizza”. Since most rural communities do not have access to pizza parlors, this messaging has transformed Casey’s into a steadily growing rural pizza hub.

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