How to Use Marketing Segmentation to Design Individually Tailored Experiences

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marketing-segmentation

If you are a marketer you have undoubtedly heard the reputation behind personalization.

It is almost impossible to drown. As more and more brands place a premium on experiences, we see the dying embers of mass explosive content and hello, {first name}, personalization.

Consistent one-on-one interactions that result in an exceptionally good customer experience are impossible without marketing segmentation and recognizing the complexity of creating experiences.

Let’s examine why.

What is Marketing Segmentation?

Do you remember when you went to elementary school and learned about the animal kingdom? You would see animals divided into different groups such as phyla, orders, genera, and families based on their common traits.

Scientists created these classifications to help understand what animals have in common and how they evolved.

Marketing segmentation works in a similar way to the organizational logic of the animal kingdom. Instead of nine classifications, marketing segmentation has four key approaches to breaking down the brands’ target markets into smaller, defined groups.

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  • Demographic breakdown is the most basic and general type of segmentation that divides people into groups based on age, gender, income, ethnicity, location, or occupation.

For example, a stretch mark prevention cream may be more relevant for women aged 20 to 35 than for men in the same age group. A marketer can create a segment that includes women in that age group and create messaging and travel for that particular segment.

  • Psychographic segmentation goes one level deeper than demographic segmentation and divides people into groups based on their attitudes, interests, lifestyles and values. Psychographic segmentation gives marketers a deeper insight into their users. It can help them create content and experiences that better reflect people belonging to a particular psychographic segment.

Imagine you have consumers who are deeply concerned about the privacy features of their smartphone. Given the privacy-friendly features of the iPhone, they may be more likely to buy this brand of phone.

To take another example, users flocking to shiny new gadgets are the early adopters. These types of consumers give you an idea of ​​how your ads are performing.

They can try different design aesthetics and copy them with a clear view of their interests and lifestyles. Pursuing early adopters’ interests beyond technology can help you make more effective, emotional connections with the right message at the right time.

  • Behavioral segmentation shares customers based on what they do. Segments are created based on how users interact with a company and what steps they take to make a purchase decision. The patterns analyzed can include brand interactions, website activity, desktop or mobile app engagement, and loyalty.

For example, suppose you have a consumer who is an avid winter sports fan. You downloaded your app and you buy a new snowboard every year that costs between $ 600 and $ 800.

They know you can segment them for messaging before buying them annually and try selling them with boards above that range or selling them with add-ons like bindings, cold weather gear, and lift tickets.

  • Geographic segmentation divides people into groups based on where they live. Climate, zip code, state, and urban, suburban, or rural categorizations affect how marketers segment consumers.

Imagine you have a short sleeveless summer dress that you want to sell in the spring and that is aimed at summer buyers. You can use a geofence to target women in warmer locations within a few miles of a beach. You may also want to turn off exposure to beaches in places where women cover their bodies.

It comes down to understanding your customers and making informed decisions to avoid negatively perceiving your brand in any particular location.

For example, let’s say you’re a sports brand and you recognize users entering or leaving a stadium on a game day. You can predict users’ favorite teams and sports, and offer certain products or experiences to participants on match days.

Or imagine that you are a financial services company and want to promote your new cloud-based accounting offering to business travelers. You can track users entering different airport zones and segment them to get targeted and relevant news.

Design a marketing segmentation strategy

Now that you understand the different types of segmentation, let’s dig deeper into their benefits and how to develop your own marketing segmentation strategy.

Getting started with marketing segmentation

  1. Analyze your customers – The first step in creating segments is to understand your customers’ behavior. How can you do that
  2. Ask for feedback – Send your customers surveys asking for their contributions. Take this strategy a step further and reach out to customers when you update your product or service to include them in the process.
  3. Talk to sales – Your sales reps know your customers and prospects at a deep level and interact with them every day. Bring your sales team into the conversation and create segments that are tailored to your customers.
  4. Immerse yourself in the analytics – Your customers spend a lot (or little) of their time on your website. See where drop offs are occurring, which pages are performing the best, and where users are giving you their personal information for gated assets for a clearer understanding of what is working and what can be improved.
  5. Pay attention to trends– Do you see a product category that is getting a lot of attention? If so, you may want to use your psychographic data to create a segment for that category.
  6. Is your product positioning working? Evaluate your news about products and test whether your value proposition is reaching your target audience before creating a full experience.
  7. Are you helping the right people? Finding the right people who have the problem your product solves is one of the keys to creating a successful marketing segment. If you match your solution to their problem, your message is more likely to be relevant.
  8. Ready. To adjust. Start. You did the hard part; You have created your segments and are ready to test them. Don’t underestimate the importance of A / B testing. Watch how segments react and optimize when results do not match industry benchmarks and projected expectations.

Marketing segmentation and one-to-one experiences

Marketing segmentation teaches you valuable lessons about your existing customers and gives you insight into where they are growing and how to focus your marketing resources for optimal results.

Imagine you are a popular ice cream brand with an iconic following. The day has finally arrived and you are expanding your sales to a digital storefront. You have the Martech stack installed, you are GDPR compliant, and your inventory tracking system is top notch.

Now it’s time to send messages, discounts, and announcements to prospects, die-hard loyalists, and everyone in between.

The more you know, the more relevant you can be.

How would your triple chocolate loving customers feel if they were given a discount on simple vanilla?

Sure, some may be excited to try something new. Or they immediately think of a vanilla fan in their circle.

Your brand will most likely get a “hey, you don’t really know me” response, especially if the consumer has only bought chocolate products so far. A well-intentioned message with a loyalty building loyalty code can have the opposite effect, alienating customers and leaving a bad taste in their mouths.

Marketing segmentation, which takes an individualized experience-first approach, analyzes the demographic, psychographic, behavioral and geographic data of the customers. You would use these insights to create relevant brand interactions, personalized messages, and relevant recommendations that would ultimately lead to an overall positive brand experience.

Now let’s take the example of an unfortunate chocolate lover who gets a discount for vanilla lovers. Instead, this time the marketer took into account all of the customers’ marketing segmentation data.

Using Marketing Segmentation To Design Delicious Trips

The chocolate lover not only sees an email with their favorite triple chocolate ice cream, but also lands on your website and sees a dynamic web banner that matches the content and graphics of the email communication.

Personalization of the landing page

Next, AI compares them to other related chocolate products that fall into their affinity. For example, if you’ve bought peanut butter products and you’ve released a limited edition double chocolate peanut butter ice cream. Sounds absolutely irresistible, doesn’t it?

Let’s say they bite. Then you will know a little more about this consumer. You may now want to break them down into a chocolate and peanut butter affinity segment. Over time, and with more interactions on your website, mobile app, emails, and ads, you may find that this consumer also likes nut-free offers without chocolate.

You may also find that they buy two gallons at a certain time of the month, and you may find that every year around their friends and family’s birthdays, they stock up on a certain flavor outside of their chocolate and nut based affinities.

Marketing segmentation example

Knowing these times and patterns can help you create consistent and valuable journeys with positive brand interactions that create strong memories and brand loyalty – and that’s the magic behind marketing segmentation.