The modern online market is so large that preparing a product and just waiting for sales is a bad strategy. According to the third-party data marketplace, the segmentation and customized offers to small groups of people with the same needs increase sales more than those aimed at a general audience. Let us discover the basics of segmentation.
Why Is Segmentation Important?
This method implies the division of the audience into separate groups with similar interests. There are many ways to do this: by geolocation, age, budget, lifestyle, etc. Audience segmentation increases conversions, calls, leads, orders, and purchases.
If you identify the main client groups and their interests, it will be easier for you to make the right offer at the proper time. Every segment consists of several participants. Otherwise, the costs of creating personal offers will be too high.
There are many ways to segment your target audience, which are more or less suitable for a specific situation and business niche. Let us look at the Philip Kotler method.
The Kotler method allows you to divide the audience according to four major parameters: geographical, psychographic, behavioral, and demographic.
Classification according to the geographical principle makes it possible to analyze regions, cities, and towns, taking into account the interests of residents. After a detailed analysis, you can make a decision to create a strategy for some specific region. If you have the target audience in a large city, you can even divide it into several small parts.
This time, customers are divided into groups based on gender, age, size of the family, income level, nationality, and position. These factors are the most popular when analyzing the audience since its preferences and needs are closely related to demographic characteristics.
Here is one of the clearest examples of the use of these data and, more specifically, age parameters. The car brand Ford has developed Mustang for young people who love fast cars at an affordable price. The demand for this model exceeded all expectations. This happened by mistake: manufacturers claimed that Mustang was for young people, but after analysis, it turned out that those who were young at heart bought the car.
The behavioral analysis allows you to divide buyers into groups according to their knowledge, attitudes towards purchases, and reactions to the product. Also, the reasons and intensity of purchases and the choice of a particular brand are important.
With the help of psychographic segmentation, users are divided into groups according to social class, lifestyle, personality type, values, and emotions. The psychographic feature allows you to analyze how users make purchases. For example, teenagers make emotional purchases, and people aged 35-40 years plan and think over every purchase more carefully.
Altogether, segmentation is a great tool to increase conversions and profits of your brand. Start it step by step. At first, analyze your audience, then consider what data can be used to define segments, select one segment, and test it – create a special mailing list or targeted advertising and analyze the obtained results.