Get Meaningful Results with Marketing Segmentation

January 29, 2020By Jared Dovers

Groups of wooden figurinesAmazon suggests products to you they know you need. Netflix recommends movies and programming they think you will enjoy. You have probably purchased some of Amazon’s suggestions and watched Netflix’s recommendations.

Studies show people prefer — and respond better to — personalized content. They want advertisements and information to be meaningful. They want it to target their specific habits.

According to a survey by Infosys, a business consulting firm, 74% of consumers feel frustrated when content is misplaced and doesn’t speak directly to them. Another 59% say personalization influences their shopping decisions.

Put that in perspective of a broadband provider. Gamers don’t want to receive emails about using broadband to work from home, and remote workers are not as likely to be persuaded by movie streaming options.

This strategy of knowing and dividing up your audience base is known as marketing segmentation: grouping consumers together based on shared traits or habits. And this strategy works for companies beyond just giant tech companies like Amazon and Netflix. You can easily get in the game and maximize your marketing efforts.

Here are some basic marketing segmentation rules to maximize your results:

  1. Keep your goals the top priority.
    Don’t lose sight of your goals in your efforts to meet your customers’ needs. Focus on the ROI and work to enhance your profitability. Every decision you make should help improve the visitor counts to your website and ultimately your profits.
  2. Be analytical in your approach to customer segmentation.
    There are two basic approaches to customer segmentation that businesses may take: analytic or non-analytic. Non-analytic segmentation is more about personal convenience more than anything else. It doesn’t provide you with any real data because you’re essentially making assumptions about the customers in the demographics that you’ve identified. An analytical approach will give you a more complete look at each market segment and allow you to tailor your approach to every subdemographic.
  3. More than just a sample
    The bigger the number of records and the better the data, the more reliable your results will be. Ideally, you’ll need a large and random sampling from each customer segment so you can get the marketing information you need. According to a small business and marketing blog, you should include a minimum of 600 different responses as a best practice to make sure that you have a thorough and accurate sampling of the subgroup.
  4. Don’t disregard the questionnaire.
    Just because the business world has moved to an online structure doesn’t mean the old-fashioned methods have become unreliable. Nothing beats a good quality questionnaire when it comes to identifying your customers’ segmentation needs. Today’s technology can give you an advantage in the segmentation process because you can include a wide variety of media materials as you gather information. Videos, graphic designs, photographs and even product prototype evaluations can all be included to determine how the overall market can be broken apart for you.
  5. Your job is never done.
    Once you identify subgroups, you can keep identifying subgroups that are further down your chain. Every new sublevel offers specific marketing opportunities that can help bring in more profitability.


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