Market segmentation is the missing marketing strategy you’ve been looking for. Here you`ll find a complete, comprehensive, and detailed article outlining market segmentation in email marketing.
Market segmentation refers to the division of your audience into groups that have some common characteristics. From that original group, the audience is broken into subgroups that also have some common characteristics.
Marketers can for instance categorize customer groups based on common interests, demographics, needs, behaviors, and values. Your marketing efforts will be able to connect to each group individually and on a deeper level by breaking them down into subgroups.
Your original target market can be narrowed by behavioral and psychographic classes.
Subdividing the audience makes it easier for each group to reach out to.
Subdivisions enable you to strategically target a particular audience on a deeper level. Therefore, your marketing strategy no longer needs to be broad and inclusive, which dilutes your message.
Marketing can focus your message so that a particular subgroup will be more likely to respond. Marketing can plan your messaging so that it is targeted directly at the segment of your customer base.
As a result, the customer experience is improved by addressing specific customer needs. Therefore you’ll build customer loyalty, develop brand identity, and form connections with your customers.
Email Marketing Goes Hand In Hand With Market Segmentation
Email marketing is a form of marketing that can make the customers on your email list aware of new products, discounts, and other services.
You can also use this approach to educate your audience on your brand value or maintain their interest between purchases.
It can also be anything in between. Mailvio can help you design, build, and optimize your email marketing campaign to get the best ROI in your marketing program. When market segmentation techniques are applied strategically in email marketing, it only serves as an advantage for your venture.
The Benefits Of Market Segmentation
Understanding a market segment is the first step to leveraging your messaging. A better product, a better sales strategy, and better targeting will allow for more revenue to flow in.
In addition, marketing segmentation increases the growth of a stagnant market. Furthermore, you may learn more about niche markets you hadn’t previously considered.
As a result, businesses gain more reliable leads that increase conversions and sales. Last but not least, by presenting your brand as unique, you develop brand loyalty and strengthen your brand identity.
Bain & Company surveys indicate that only a small percentage of companies use market segmentation research effectively. Despite the fact that many executives believe it is crucial for growth and increasing profits.
A marketer who grasps hold of and uses this information effectively will further benefit from business market segmentation.
Marketing Segmentation: A Complete Breakdown
This section outlines and breakdown the main primary categories of segmentation. These methods feature heavily in email targeting.
Is based on factors such as a person’s values, feelings, and opinions, such as lifestyle, interests, beliefs, and opinions.
In a narrower spectrum, it involves segments such as political beliefs, awareness issues, activities, and special interests. Basically, this is where you would find customer groups such as people who enjoy reading books.
You likely find customer groups that show interest in healthy lifestyles. Possibly, a group consisting of people who are anti-cruelty and pro-life activists.
Is the classification of individuals based on attributes such as age, gender, ethnicity, and income. In a more narrow scope, it might include housing type, education level, Italian, or even which allergies they have.
The categories listed above are examples of demographic data. Groups are determined by a set of specific criteria.
This categorization of people is based on the location of their city, country, continent, or region. Specifically, it might include a neighborhood, county, zip code, or street number.
Categorization by company attributes such as industry location, business size, internal revenue, or industry type.
This would include a narrower range of segments, such as specific job titles, memberships, and unions.
Those are all examples of firmographic data. Demographic segmentation involves people. Similarly, firmographic segmentation pertains to businesses and organizations.
Segmentation Base On Habits/Behavior
Refers to the separation of customers according to their behavior patterns, such as product usage, habits, benefits, and timing.
It could include segments such as how often a customer visits a website, what features the customer uses. Or what time of day/season a potential customer buys the most often.
These categories are commonly exhibited patterns in the way people interact with a product or service.
Segmentation As Part Of Your Marketing Strategy
Research on market segmentation should be explored and considered during all marketing campaign strategies. Check to see if it’s a strategy that fits your business plan.
One of the best times to implement marketing segmentation is when sales have plateaued, and you want to find new markets to boost sales. You can also use it when you want to target a niche market or increase your profit margins.
Similarly, finding a parallel market for your existing market is a good time for your marketing strategist. In this situation, you find customers who exhibit the same traits as your existing client base.
As a best practice, you should implement marketing segmentation after you have established your original target audience. Track and tweak the results of market segmentation throughout the year.
Once the market segmentation process starts, strategists will focus on the areas showing progress. You should also review your market segmentation analysis as conditions or the environment affecting your business or industry change.
Watch for changes in customer base or conditions. This is a constantly changing world, and your market will also change.
Go Ahead! Deploy Marketing Segmentation!
Email marketing is one area of marketing where market segmentation is automatically applicable. Mass emails reach hundreds or even thousands of people every day.
However, if you segment each campaign, you can customize the target message and reach more people. Personalized messages can speak directly to an audience and have a more profound impact on them.
Many surveys revealed that segmented marketing campaigns saw a 110% higher click rate than non-segmented email campaigns.
Businesses use market segmentation to learn as much as they can about their customers and their needs. With the insights gained from market segmentation, businesses can then tailor their marketing campaigns to the wants and needs of specific clients. This, in turn, allows businesses to run campaigns that are effective and efficient.
Therefore applying market segmentation going forward will take your email marketing campaigns forward. Sit back as you reap the benefits of email marketing.