Why digital marketing needs segmentation

We have seen in the previous article «The keys to digital marketing success» that marketing is based on understanding your customers well. From there, you can build a value proposition that seduces them and sell them your products easily.

To understand your clients well you need know them and know who they are, and to achieve this it is essential to carry out a segmentation process. Let’s see what it consists of.

What does it mean to segment customers?

Segmenting customers means dividing them into small groups of common characteristics . The first segmentation that can come to your mind is by sex (men or women) or perhaps by age: between 18 and 25, between 25 and 45, and over 45 years.

Segment

This type of segmentation, as we will see later, is demographic, but it is not the only one that exists. In fact, demographic segmentation does not provide us with relevant information in many cases.

Why is it important to segment?

Because by identifying segments where customers have similar characteristics, you can offer them value propositions adapted to their way of being and acting. Communication becomes much easier and the probability of success of your business, much higher.

Segmenting by segmenting is useless. You segment because you want to differentiate your proposals and better reach each of your clients.

For example, if you have a website with nline English courses, surely you are interested in segmenting by the level that each client has. You can differentiate 3 groups: low, medium and high; and from there, design different communication strategies for each segment. Surely the messages you must deliver to students who are starting with the language are not the same as to the more advanced ones, and surely the sales strategies are very different.

How is segmentation done?

To segment, you must first know the customers, understand them, discover what they like and what hurts them. Only then can we later group them into distinct segments.

People segmentation

Customer analysis is carried out using segmentation variables. These variables will offer us different perspectives to observe the market and identify groups of similar people. Sex and age, as we saw before, are segmentation variables, but there are many more.

Segmentation variables

We start with the classic variables (so classic that I have taken them from Wikipedia ). Traditional variables allow us to know what our clients are like , regardless of our brand. The most common are:

  • strong>Geographical: clients are divided by country, region, city, neighborhood, etc.
  • Demographic: classification by age, life cycle stage, gender, religion …
  • Psychographic: segmentation by social class, lifestyle, personality, preferences, etc.
  • Economic: division according to the purchasing power of customers.
  • Attitudinal: we group according to how our clients see the world, what opinion they have on various issues, etc.

In addition to the classic variables we have seen, we can incorporate a new perspective into our study: the relationship our clients have with our brand, that is, how they interact with our products and services. These variables make sense if our proposal is already on the market. If not, we have to base the study on traditional variables.

Within this new perspective we can highlight the following analysis criteria:

  • Why do our customers buy from us?
  • What do you value most about our value proposition?
  • How do they use us?
  • When are you using us?
  • What is your level of satisfaction?
  • Etc.

Let’s give an example: imagine that you have launched a dating application and you want to segment your current clients (including all those who somehow interact with your brand).

App dating

If you use classic variables, surely the ones that interest you the most are the demographic: men or women, age ranges, etc. You could also incorporate the geographic variable, which is key in such an application. With all these variables and the data of your clients, you can make a first segmentation and identify different groups to which to offer more personalized proposals. You can, for example, offer different services to men and women, and communicate differently depending on the age of the users.

If in addition to this analysis you can incorporate the second set of variables. In this case we talk about how your customers interact with the application. For example, how many times a day do they use it, how long, what functionalities do they use the most, etc. This type of segmentation can help you optimizing your application and increasing sales.

Conclusions

Segment or die. If you don’t segment, you die: your message is blurred among too heterogeneous an audience. If you segment and don’t prepare different proposals for each group, you also die. And when I say die, I mean that you have little chance of succeeding with your business.

Segment to better understand your customers, to communicate with each group differently, to offer them proposals adapted to their particular tastes and to sell more.

And this is all for now!

I am still working to become an expert in digital marketing and I will tell you everything in this blog.

See you in the next article.

Cheers!

Gerardo Marote.

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