There’s a big difference between knowing your audience.and knowing your audience. You can have a general idea of the people who roughly fall into your ‘customer persona’ category, however, for the best chance at attracting and converting highly qualified customers, you need to delve deep into your audience and their psyche. Segmentation is a helpful way to achieve this.
What is meant by ‘segmentation’ in digital marketing?
Segmentation is defined as: “division into separate parts of categories.”
In digital marketing, it is the process of dividing your broad consumer (or business market) up into highly-refined sections consisting of existing, potential, and sub-groups of customers based on certain shared characteristics.
There are four main types of segmentation:
● Demographics: demographics typically refer to ‘non-negotiable’ features such as age and gender.
● Lifestyle: lifestyle refers to characteristics that can be changed, like geographical location and total household income, etc.
● Behaviour: behaviour identifies a customer based on their typical online actions, such as how often they use email and which brands they like on Facebook, etc.
● Value: value looks at how much a given prospect is worth to your business. Using previous transaction data and behaviour you can calculate the total lifetime value of a customer.
What are the necessary steps of audience segmentation?
In order to successfully categorise your audience, you’ll need to follow these 5 steps:
● Define your goals: what is the objective of segmenting your audience? Are you looking for cross-selling opportunities? Do you wish to weed out the low value prospects? Whatever the case, having a clearly defined goal or set of goals will help you along your way.
● Gather your data: next, you’ll need to gather all of your customer data and consolidate it in one place. Find a balance of external market data and your own analytics and start categorising from there.
● Analyse: now you need to identify the key variables between each segment. For example, if your goal is to go after an older demographic, look for the characteristics (besides age and location) that are associated with your older prospects and sort them accordingly.
● Test everything: as you segment your audience and create different content and ads strategies to target them, you should split-test your messaging until you can identify which approach resonates best with each unique audience segment.
● Dial-in: keep testing and refining your approach. Collect data, analyse it, and use the information learned to make improvements on the fly.
How can segmentation help your broader digital marketing strategy?
Customer segmentation in digital marketing can benefit you in a number of ways, however the primary benefit is to gain greater flexibility with your marketing efforts, thus enabling you to target a very specific type of person. Whether they are the most profitable or the most likely to become brand ambassadors is entirely up to you.
When done well, proper segmentation of your audience can be game-changing for your long-term digital marketing goals. For example, an SEO agency in Abu Dhabi can use segmentation to create highly targeted adverts that resonate well with a very specific type of prospect (e.g., local businesses in commercial construction, Arab owned, multi-lingual, high annual revenue, etc.).
Of course, segmentation is just one small cog in the broader digital marketing research wheel. So, if you find that you don’t have the time or the desire to invest so much in segmentation, it’s almost certainly worth hiring the professionals to assist you.