Share on facebook
Share on linkedin
Share on twitter
Share on facebook
Share on linkedin
Share on twitter

Market Segmentation: What It Is and How It Works

If your marketing tries to appeal to everyone, it is doomed to fail. Instead, those in the know use market segmentation to divide their audience into specific groups for precise targeting.


What Is Market Segmentation?

Market segmentation is a way of separating your customers into different groups. Once you have done so, you can tailor your marketing campaigns in order to appeal to these different target segments.

Customer segmentation can be based on various factors:

Behavior (known as behavioral segmentation)

Demographic information (age, income bracket, etc.)

Psychographic information (social class, lifestyle, personality, etc.)

Geographic (location)

By breaking its customers down into various groups based on the above factors, a company can look at each audience segment individually, and identify their needs, wants and desires. Marketers can then use this information to design marketing campaigns and create ads that appeal directly to these audiences.


Examples of Market Segmentation

Lots of different people use a gym – despite the stereotypes, there is no one archetypal gym user. A gym will attract fitness fanatics, but even these will be split into those time-poor young professionals who favor HIIT (high intensity workouts) to get results quicker, treadmill addicts, weightlifters whose only goal is building muscle mass, and so on. 

Add to this the scores of casual gym goers, like those social users who only go to fitness classes with friends, those who just want to try something new, older people wanting to retain mobility and those recovering from illnesses or injuries.

It is obvious one marketing campaign isn’t going to appeal to all these varied users, all of who have different needs and goals. Instead, a gym would do well to come up with a segmentation strategy in order to create multiple personalized campaigns and get the highest return on investment.


How to Choose a Segmentation Strategy

When devising a marketing segmentation strategy, you can choose one or more factors identified above (behavior, demographic, psychographic and geographic) to segment your customers depending on your goal.

However, if you want to target customers with the highest precision, you will need to understand their interest and intent in real time. This requires you to understand their changing behavior online throughout the customer journey. Leverage a data science platform powered by machine learning to analyze this data on their behavior, and then use the insights for effective segmentation.

In order to be reliable, your results should be:

1. Measurable – you can identify segmentation variables related to your product or service, and develop a descriptive profile of the segment.

2. Accessible – you can reach the target segment efficiently and cost-effectively.

3. Substantial – your segments must be able to spend money with your company.

4. Actionable – and they must not only be able, but willing to spend.


Marketing segmentation done right, it can not only help you improve campaign performance and business focus, but also discover new areas to expand, and boost your conversions.

Want to see how machine learning can help you with more effective segmentation and precise targeting? Get in touch with one of our specialists now!


Let us know the marketing challenges that you’re facing, and how you want to improve your marketing strategy.


What Is Churn Prediction?

Customer churn prediction can help you see which customers are about to leave your service so you can develop proper strategy to re-engage them before it is too late. This is a vital tool in a business’ arsenal when it comes to customer retention. Wondering what churn prediction is, and how it actually works? Read on, and all will be explained…   What Is Churn Prediction? Churn quantifies the number of customers who have left your brand by cancelling their subscription or stopping paying for your services. This is bad news for any business as it costs five times as much to attract a new customer as it does to keep an existing one. A high customer churn rate will hit your company’s finances hard. By leveraging advanced artificial intelligence techniques like machine learning (ML), you will be able to anticipate potential churners who are about to abandon your services.     Why Is It Important? The truth is you probably already have more customer data than you know. By leveraging this data, you are able to identify behavior patterns of customers who are likely to churn. This knowledge will enable you to segment those customers and take the appropriate measures

Maximize App Engagement With Push Notifications (Industry Examples Included)

Having high app downloads is not much good if your customers don’t use your app. Thankfully, you can increase your app engagement and help your brand play a bigger part in your customers’ lives through the judicious use of app push notifications.    The State of App Engagement There has been an explosion in demands for mobile apps in recent years, and global consumer spending reached US$120 billion on apps — a figure that is up 2.1x from 2016.  Consumers love apps, as do brands. It is a great way to meet your customers’ needs and because they are on mobile devices, your customers can engage with your brand wherever they are. However, to give your customers a reason to stick with your app, you need to craft your app engagement strategy carefully, and push notifications can be a great way to remind them about your app and what you have to offer.   Why Use Personalized Push Notifications? As a marketer, push notifications can be your greatest asset or your worst enemy. Using them correctly offers you a fantastic way to engage your users with personalized, timely promotions that increase their level of engagement with your brand. However, misuse

5 Marketing Automation Mistakes You Might Be Making and How to Fix Them

Seventy-five percent of marketers currently use at least one type of marketing automation tool, and spending on marketing automation is expected to hit US$25.1 billion by 2023. However, despite its widespread use, this type of software is not being used to its full potential. Lack of a clear strategy, using too many or too few tools, and not testing and tracking your efforts are some of the obvious pitfalls. On top of these, here are some less apparent marketing automation mistakes you might be making – and how to fix them.    Mistake #1: Not Using Your Valuable Data Data is vital in any marketing automation strategy. However, you can’t use it to drive your efforts if you aren’t collecting and using all your valuable data. The Fix for You What is your valuable data? It includes all demographic, behavioral, transactional, and qualitative data from your e-commerce sites, web forms, official websites, apps, CRM, social media channels, customer services and more.  Marketing automation platforms can collate this data in real time for a complete customer view. Such insight allows you to segment your audience in order to create more relevant, personalized content.   Ninety-one percent of customers say they are more