Customer Segmentation: Get to Know and Engage with your Audience

Targeting customers by a generic approach isn’t as effective as you think, as everyone has a different interest. Think of it this way; you interact with various people in your life differently. You wouldn’t talk to your co-workers or employees the way you would with your friends and family. It is where customer segmentation comes in, and here in this article, we’ll guide you about what it is and how it’ll help improve the engagement between you and your customers.

What Is Customer Segmentation?

Before talking about how customer segmentation can help with the growth of your business, it is vital to know what it is. It is a process by which the target audience is grouped into sub-sets according to their characteristics, including but not limited to age, sex, interests, location, habits, income, industry, etc.
This method allows you to organize and personalize your marketing to each group. It will lead to a better engagement with your customers as you will deliver a marketing campaign message that caters to them.

Common Segmentation Models

Some of the famous widely used segmentation models include:

Demographics: The customers are segmented based on income, gender, age, and education.
Geographic: This model deals with the customers’ location, such as the country and city.
Technographic: This will tell you what platforms your customer uses the most, e.g., emails, social media, desktop/mobile use.
Psychographics: This includes interests, habits, and personalities.
Needs–based: This allows you to identify your customers’ needs so that you call to sell products accordingly.

Benefits That Customer Segmentation Brings

Applying this process to your marketing will bring many benefits; compared to mass marketing, as customer segmentation is way more effective. Some of the benefits include:

Marketing Messages: When you categorize individuals and their needs, you’ll be able to create content personalized for them. For example, some people would use social media than check emails, so if you send them your messages via the latter platform, the chances are that it’ll go unnoticed. Once you begin involving the customers in the right way, you’ll see more participation by them, leading to profit.
Less Cost: You will be wasting your time, energy, and money by generating generic marketing campaigns to which some customers won’t even give a second thought. Instead, use your current audience data and send them individualized content they can find relatable. It will reduce the cost and the failure risk of your campaign.
Customer Loyalty: You will automatically win the loyalty of your customers when they realize you’re not just sending out messages to everyone but instead are focusing on what they need. By this, you will also know who your valuable customers are.
Better Strategy: Over time, you’ll collect focused data that will help you further improve your marketing strategies. Understanding the audience will foster new learning opportunities that will revamp your company

Conclusion

For success in a business, customers’ respect and involvement are essential. Customer Segmentation is how you can interact with your audience in an individualized manner that’ll help boost your sales.

To read more about the Digital Marketing fundamentals, check out The Fundamentals of Digital Marketing article.