If you’ve heard of audience segmentation in regard to marketing, you might be wondering how it can benefit your business - or, perhaps you’re not sure what exactly it means.
If you’re looking to find out what segmentation really means, how you can segment your audience, and how it can benefit your business, keep reading.
What is audience segmentation?
As the name suggests, audience segmentation means dividing your audience into small groups that are based on certain things they have in common. Imagine an orange: the whole fruit represents the entirety of consumers, which can be broken down into smaller ‘bite-sized’ chunks.
The reason audience segmentation is commonly used? It can make your marketing more personalised and help you to connect and communicate with people in ways that they want to be communicated with.
When a single product serves more than one audience or when several products serve different audiences, audience segmentation is most useful.
There are a wide range of factors that audiences are segmented according to. There is no limit to the amount of things you can segment your audience on, but the most common are as follows: product usage, demographics, behaviour, their engagement with your brand, and so on.
How audience segmentation can benefit your business
Higher success rates
Audience segmentation helps you to divide a large market into smaller parts which will let you know which consumers are riskier for the business and which have the highest chances of success. Pulsar Trac can help you to track and predict potential success rates.
Audience segmentation is effective for helping businesses to target specific parts of the market and helps you to find better business opportunities. Because of this, marketers can carefully plan their campaigns to meet the needs of that specific segment. This tactic allows companies to focus on certain segments instead of the whole market at any one time, which gives increased profit.
Once there is a clearly identified target market, competition will increase. The marketing team needs to come up with new promotional ideas to help their brand to stand out among the competition. A range of different offers will help marketing teams to bring in more customers, and being able to know your customers better will help with brand loyalty and customer retention, too.
More marketing opportunities
In the same way that audience segmentation recognises opportunities elsewhere for the company, it also helps to find marketing opportunities. Finding out where customers are more or less satisfied is a great way for companies to be able to improve their products and earn their customer’s loyalty to an even greater extent.
It is cost effective
Efficient audience segmentation saves a lot of time and money that would otherwise be wasted. As well as this, because customers are grouped according to a range of factors, it makes it easier for audiences to be targeted by marketing groups. As a result, the process of audience segmentation is smooth and performed in such a way that it is highly cost effective.
And there you have it - all the basics you need to know about audience segmentation - what it is, how it works, and how it can benefit your business.