What is Segmentation?
Segmentation is dividing your audience or customer base into distinct groups (segments) based on shared characteristics. This allows you to deliver more relevant, personalized marketing messages to each group.
Types of Segmentation
- Demographic: Age, gender, income, education
- Geographic: Location, climate, urban/rural
- Psychographic: Values, interests, lifestyle
- Behavioral: Purchase history, engagement, usage
- Firmographic: Company size, industry, revenue (B2B)
Benefits of Segmentation
- Higher conversion rates through relevance
- Improved customer engagement
- Better resource allocation
- Reduced marketing waste
- Enhanced customer experience
Segmentation Best Practices
Ensure segments are measurable, substantial, accessible, and actionable. Start with your most valuable customer segments. Use data to validate assumptions and continuously refine segments based on performance.