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Dorchester Center, MA 02124
You create ads, emails, blogs, videos, and other content to convey your business’ message to your audience and make them subscribe, share or purchase. However, conversions happen only when the content you created appeals to the audience you have designed it for. This is where segmentation helps.
For, segmentation is the division of your audience into several identifiable and manageable groups to let you send more personalized and targeted content that better suits each group. You can segment your audience on the basis of different factors such as their demographics, interests, geographic location, devices, online behavior and more.
Segmentation is the process of diving customers and prospects into accessible, definable, actionable, and profitable segments based on similarities in their characteristics, behavior, or preferences. It helps businesses and their marketers to understand their consumers better and tune their messaging accordingly.
Various types of segmentation techniques exist. These include-
Your consumers come from different backgrounds and have different needs, preferences, and interests. So, you always have a mixture of audiences. There will be people who like your brand, some who do not, some high-paying ones, some low-paying ones, some from a particular industry, some from others, and more.
Your messaging and marketing and sales pitch need to address the varying needs of your consumers rather than targeting them with a one-size-fits-all approach. Statistics says that segmenting your audience can-
Now that you know what segmentation is and why it is important for your business, get to know ten ways in which segmentation can help you get more conversions.
Segmentation allows businesses to come up with personalized experiences for their consumers. It helps eliminate generic messaging and lets each group of your consumers feel understood, heard, and seen by your business. This matters because consumers today expect highly personalized experiences. 80% of them tend to do business with a brand that employs personalization tactics across various marketing mediums.
For instance, women won’t prefer promotional messages that market men’s products, and men won’t appreciate it if you promote women’s products to them. So, adopt segmentation to refrain from sending a one-size-fits-all message to your entire base of consumers and prospects.
A value proposition refers to the value a business promises to communicate and deliver to its consumers if they opt to purchase its product or service. When your value proposition addresses the need of your target consumer and demonstrates your superiority over your competitors, it attracts more customers and prospects.
When you segment your audience, you can gain a better comprehension of each segment. This in turn will help you craft a powerful value proposition for each group. ITSMA, a firm specializing in B2B marketing strategy and development, found that 82% of B2Bs that created personas experienced an improvement in their value proposition.
Segmentation acts not only as one of your best customer retention strategies but also as a major player in driving impulse buys. As mentioned under the “importance of segmentation” section, people make impulse buys when they are presented with a personalized message.
For, with advanced segmentation, you’re able to assure consumers that you know them better than they know themselves. This eradicates some of their doubt in their purchase decision process. This makes them take a straight, comfortable leap into the sale step.
Your business’ website is one of your most important marketing collaterals. Segmenting your audience would enable you to tailor your website content to address particular segments. A study by HubSpot showed that with segmentation, businesses could build websites that are two to five times more efficient than those that provide generic content for all users.
Many online stores allow their customer segments to self-select the website content that best suits their needs. For instance, an apparel retailer has separate pages for kids’, women’s, and men’s clothing. By letting visitors choose the tab with the products they’re looking for, businesses keep unnecessary info out of the way, and thus, offer a more streamlined user experience.
Businesses can segment customers based on their acquisition cost or revenue contribution. This is possible as analytic tools provide them with data such as the customer lifetime value, average order value, and the number of purchases. This can aid in polishing your marketing strategies and increasing your revenue generation in the following two ways:
If you have been in business for a while now, you probably would know that the cost of acquiring new customers is significantly more than retaining the existing ones. So, you need to direct efforts toward prevent customer churn. While there are plenty of reasons why customers would leave your business, one sure fire way to reduce their loss and retain them is customer segmentation.
For, segmentation allows you to improve retention by helping you recognize customers who are at the risk of churn (those who haven’t purchased from you for a significant period of time). Once you identify this segment, you can target them with a retention campaign designed to win them back. This will help reduce customer loss.
By segmenting your customers based on their online, especially onsite behavior, you’ll be able to increase sales with targeted messages. Following are the customer segments you should create for targeting with your well-crafted messages.
All these promotions will increase sales and gain you more conversions.
Your customers differ on a variety of grounds like demographics, geo-location, psychology, culture, and more. So, marketing to them with a one-size-fits-all messaging isn’t going to work, especially in this era of high technological advances. For, people prefer marketing messages that are tailored to their needs.
This is why customer segmentation is no longer just a digital marketing trend but a necessity for businesses that seek to succeed. So, take enough time to go through your customer data to segment customers into meaningful groups and then cater to the needs of specific groups with highly relevant content. This will help attract their attention, identify different marketing channels that bring more customers, convert more buyers, retain more customers, make more sales, and generate more revenue.