The shift from traditional to digital marketing changed the marketing landscape from one of silos to one of interconnectedness. Using a one-size-fits-all approach no longer makes the cut, especially with the coming of cutting-edge AI technologies. The ever-growing marketing industry now encompasses endless automation and analytics capabilities that enable brands to turn moments with their target audience into trusted customer relationships.
While many brands have the latest marketing tools in their arsenal such as HubSpot, Salesforce, and tools like Google Analytics, many of them fail to optimize these tools for audience segmentation. Being able to track customer actions, especially the ones that drive sales, is essential to ensuring customers get what they want. Audience segmentation enables you to use customer data to develop unique experiences that lead to customer loyalty. This is a win-win for both businesses and the customers they serve.
Wondering how audience segmentation works? You’ve come to the right place. We have compiled a list of some frequently asked questions about audience segmentation to help kickstart your journey.
What Is It
What is audience segmentation?
Before we jump into the details about audience segmentation, we have to address the elephant in the room – buyer personas. Audience segmentation and buyer personas are two peas in a pod, they can’t be separated, they look similar, but they are unique in different ways. A buyer persona is a fictional representation of your ideal target audience or customer. Audience segmentation, on the other hand, allows you to identify specific groups of people within your buyer persona.
One of the hurdles businesses faces is distinguishing specific groups within their buyer persona to enable the development of marketing strategies that are unique to each audience’s specific needs and interests, otherwise known as buyer journeys. At M_LAB we specialize in (industry) marketing. We help our clients overcome these hurdles by developing these buyer journeys for our clients.
For example, if your company targets young families, there are multiple segments within this group including different locations, values, religions, lifestyles, socioeconomic status, purchasing behavior, and key motivations. Audience segmentation allows you to dive deeper and create more detailed, and accurate, buyer personas. From our experience, the more details you have the more able you are to develop informed content strategies.
Why You Should Do It
There are many ways to segment an audience. The method you choose should depend on your specific business goals and marketing objectives. Here are some of the most common methods to segment your audience:
What are the key benefits of audience segmentation?
Audience segmentation allows brands to get closer to their customers by making their customers feel heard. Combining basic user segmentations like age, gender, and location with behavioral and intent-based segmentation will provide you with the right data set to create personalized messaging that results in increased engagement.
Today’s shopper goes through a more complex buyer journey guided by their own sense of beliefs and intentions. Brands that are able to cater to unique audiences needs and to increase audience engagement will enjoy more lead, increased conversions, and higher customer retention.
How does audience segmentation give companies a competitive advantage?
Companies that execute audience segmentation successfully reap many benefits. Here are some examples of companies that were able to gain a massive competitive advantage by developing personalized brand experiences based on audience segmentation:
Amazon: The company’s highly targeted email campaigns are based on past purchases, interests, and behaviors. Each user experiences personalized messaging based on products that are relevant for them and their buyer journey.
Nike: The brand has separate campaigns for runners, basketball players, soccer players, etc. Each campaign is tailored to the specific needs of each audience segment group, even though it might be promoting the same training shoe.
Netflix: Netflix uses audience segmentation based on viewing habits. Audience experiences are based on shows that the viewer is most likely to find interesting and highly engaging.
Overall, these brands have successfully optimized their audience segmentation efforts to better understand and connect with their customers.
How Do You Do It
How do you identify relevant audience segments?