A one-size-fits-all approach won’t suffice when it comes to capturing and retaining the attention of your audience. This is where audience segmentation comes into play—a powerful strategy that enables you to divide your target audience into groups, allowing for personalized and targeted marketing efforts.
In this article, we will delve into the various types of audience segments and examine the numerous benefits that audience segmentation offers. Additionally, we will provide valuable insights and examples on effectively implementing audience segmentation strategies to optimize your marketing efforts.
What is Audience Segmentation?
Audience segmentation divides a target market into distinct groups or segments based on specific characteristics, preferences, and behaviors. Audience segmentation helps you better understand and effectively communicate with different subsets of consumers who share common traits or interests.
Additionally, segmentation enables your brand to personalize messages, products, and services to meet the specific needs and desires of each segment. As a result, audience segmentation delivers more personalized and targeted marketing campaigns, increasing the engagement and loyalty of your audience segments.
6 Audience Segmentation Types + Examples
There are various types of audience segments that you can leverage based on different criteria. Here are some commonly used audience segmentation types and examples of how you can use them to improve your marketing KPIs.
1. Demographic Segmentation
Demographic segmentation divides your audience based on demographic variables such as age, gender, income, occupation, education, marital status, and ethnicity.
Example of How to Use Demographic Segmentation
You work for a company that sells luxury skincare products. You could use demographic segmentation to divide customers into three age groups:
- Millennials (18-34 years)
- Generation X (35-54 years)
- Baby boomers (55+ years)
Each group may have distinct skincare concerns and preferences. For example, millennials might be more interested in products that address acne or provide a youthful appearance, while baby boomers may focus on anti-aging and firming products.
2. Psychographic Segmentation
Psychographic segmentation focuses on the psychological and lifestyle aspects of the audience. It categorizes individuals based on their attitudes, interests, values, opinions, behaviors, and lifestyles.
Example of How to Use Psychographic Segmentation
You work for a company that sells outdoor adventure gear and equipment. You could use psychographic segmentation to target different personality traits and lifestyle preferences within your customer base.
Adventure enthusiasts: This segment comprises individuals who seek thrilling outdoor experiences, such as hiking, rock climbing, and camping. These consumers value excitement, challenge, and adrenaline. Create marketing messages that emphasize the ruggedness, durability, and performance of your gear to appeal to this segment. You may also use imagery and language that evokes a sense of adventure and exploration.
Nature lovers: This segment has a deep appreciation for nature and prefers more easy-going outdoor activities like bird-watching, nature walks, and photography. These consumers may also value sustainability and eco-friendly practices. Target this segment by promoting your environmentally conscious materials and highlighting gear suitable for capturing moments in nature.
Fitness enthusiasts: This segment is passionate about fitness and engages in activities like running, cycling, and fitness training. Functionality, performance, and comfort matter most to them. Create personalized messaging to highlight gear that enhances performance, supports physical activity, and provides comfort during workouts.
3. Behavioral Segmentation
Behavioral segmentation categorizes your audience based on their actual behaviors, such as purchasing history, product usage, brand loyalty, engagement with marketing channels, and response to promotions.
Example of How to Use Behavioral Segmentation
You work for a retail clothing store and can utilize behavioral segmentation based on customers’ purchase history to target different segments with tailored marketing strategies.
High-Value Customers: These customers have consistently made large purchases or have a history of frequent purchases. You can identify this segment by analyzing the total amount spent by each customer over a specified period. Target these customers with exclusive rewards, VIP discounts, or personalized shopping experiences. You can also send targeted emails or notifications about new arrivals or limited-time offers to incentivize repeat purchases and foster loyalty.
Occasional Shoppers: These customers make infrequent purchases or have a sporadic shopping pattern. Identify this segment by analyzing the gaps between purchases made by each customer. To encourage more frequent purchases, send targeted promotional offers, such as limited-time discounts, free shipping, or personalized recommendations based on past purchases. You can also leverage remarketing techniques, such as displaying relevant ads or sending reminder emails, to keep the brand top-of-mind for these customers.
Seasonal Shoppers: These customers exhibit a pattern of purchasing specific items during certain seasons or occasions. Identify this segment by analyzing the types of products purchased during different times of the year. To cater to these customers, create targeted campaigns and promotions related to seasonal events, holidays, or specific product categories. You can also send personalized recommendations or reminders based on past seasonal purchases to capitalize on their seasonal buying behavior.
4. Geographic Segmentation
Geographic segmentation divides your audience based on their location, such as state, city, or even neighborhood, which helps you tailor your messages and offerings based on the specific needs and preferences of consumers in different locations.
Example of How to Use Geographic Segmentation
You work for a national insurance company that wants to target different regions based on unique insurance needs and risk factors. You can use geographic segmentation to tailor insurance offerings and marketing strategies accordingly.
Coastal Regions: Coastlines are prone to natural disasters like hurricanes or flooding. Reach this segment with insurance policies specifically designed to cover damages caused by such events and offer additional coverage options for coastal properties.
Urban Areas: Urban areas often have higher crime rates. Offer this segment insurance packages that provide comprehensive coverage for personal belongings and offer additional features such as identity theft protection or coverage for electronic devices.
Rural Areas: Offer specialized coverage for farming equipment, livestock, or agricultural properties to this segment. You can tailor your offerings to address risks related to rural living, such as farm accidents, crop damage, or animal liability.
5. In-Market Segmentation
In-market segmentation focuses on the immediate needs and intentions of potential customers. By using various data sources, such as online browsing behavior, social media interactions, purchase history, and intent signals, you can identify consumers who exhibit clear indications of purchase intent.
Example of How to Use In-Market Segmentation
You work for a car dealership that wants to target individuals who are actively in the market to purchase a new vehicle. You can use in-market segmentation to identify and engage with potential customers who are showing clear signals of purchase intent.
Online Browsing Behavior: Work with a reputable audience provider to identify consumers who are actively researching and comparing different car models. By analyzing browsing behavior related to car specifications, pricing, and reviews, you can identify individuals who are in-market for a new vehicle.
Purchase History and Intent Signals: Work with a reliable audience provider to use customer data and intent signals, such as individuals who have recently sold or traded in their existing vehicle or have previously visited your dealership for a test drive.
6. Life Event Segmentation
Life event segmentation targets consumers based on significant life events or milestones they’re experiencing. These life events can include major personal transitions such as moving to a new home, getting married, having a baby, graduating from college, or retiring.
Example of How to Use Life Event Segmentation
You work for a furniture and home decor retailer that needs to target consumers who are moving to a new home. Porch Group Media has proprietary mover segments to ensure your brand reaches new movers before your competition.
Verified Pre-Movers: Reaching new movers before they move keeps your brand on their radar for when they’re ready to make a purchase decision. These individuals are homeowners who are about 2-6 weeks out from completing their move and have a house under contract or are in the inspection, moving, or financing process. This segment is actively researching and shopping for new goods and services. Reach this segment across online and offline channels and offer them a special discount or promotion.
Post-Movers: This segment is comprised of homeowners and renters who have completed their move. This valuable shopping period lasts for at least 1 to 12 months post-move. Utilize an omnichannel marketing approach during this stage of the moving journey to keep your brand top of mind and drive sales.
It’s important to note that these segmentation types are not mutually exclusive, and it’s best to combine multiple approaches to gain a comprehensive understanding of your target audience and develop effective marketing strategies. With Porch Group Media’s rich consumer insights, you can create custom blended audience segments for more precisely targeted campaigns. Learn more about how we can help you build high-performing audience segments.
5 Benefits of Audience Segmentation
Audience segmentation is a must-have for your marketing strategy and offers several benefits.
1. Improved Personalized Marketing
Audience segmentation allows you to create personalized and targeted messages that resonate with each group’s specific needs, interests, and preferences. This increases the chances of capturing their attention and driving engagement.
2. Better Understanding of Your Customers & Prospects
Audience segmentation helps you gain a deeper understanding of your customers and prospects by identifying common traits, behaviors, and preferences within each segment. These insights enable you to develop marketing strategies that better align with your customers’ needs, leading to higher customer satisfaction and loyalty.
3. Enhanced Marketing Efficiency
With segmentation, you can optimize your resources by focusing on high-potential segments rather than employing a one-size-fits-all approach. By allocating marketing budgets and efforts strategically, you can maximize your return on investment (ROI) and achieve better outcomes.
4. Higher Conversion Rates
When you personalize your message to specific audience segments, the chances of converting prospects into customers increases. By addressing the unique pain points, desires, and motivations of each segment, you can create compelling offers and experiences that resonate more effectively, resulting in higher conversion rates.
5. Increased Customer Retention
Segmentation considers the different needs and preferences of your customers, helping you deliver relevant information and offers, leading to increased customer loyalty and advocacy.
How to Get Started with Audience Segmentation
As a top-ranked audience provider, our custom blended segments connect you with the right audiences when it matters most. See for yourself how our rich consumer segments can help you boost your campaign performance.