Types of Customer Segmentation You Can Start Using Now
If you are not segmenting your target audience or market, and instead of treating them as one block of like-minded consumers, then you may be unknowingly sabotaging your business.
Segmentation is a crucial building block towards connecting your brand to the right consumers. Dividing customers into different groups that are based on common characteristics, behaviours and needs helps you market to every segment distinctively and effectively. If done right, you will be able to understand your desired customers better, identify the most effective channels to connect with them, capture their attention, and get better returns on your marketing spend.
To start, here are five types of consumer segmentation you can try. Most of these segmentations will give you only a partial view of the consumer, so always consider combining two or more segmentation to improve your targeting accuracy.
1. Demographic Segmentation
Demographic data is the most commonly used and also the cheapest to get, whether through census data or by creating your own simple survey of your existing customers. The data include basic identifiers of every human such as age, gender, race, marital status, education level, and occupation. If you use Google Analytics and Facebook Insights, chances are you’re already segmenting your customers using demographic data.
Pros: The measurements are pretty standard and therefore is usable anywhere, on any platform.
Cons: On the other hand, demographic data doesn’t tell you much else about the consumer’s behaviour or interests.
2. Psychographic Segmentation
Psychographic segmentation groups people according to their attitudes and interests. It is based on the premise that consumers who share similar lifestyles and outlooks will also have similar expectations towards products and brands.
Pros: This segmentation helps you understand what will trigger customer interest towards your brand
Cons: Harder to collect and analyse on your own, and is not very useful without combining with other segmentation
3. Generation Segmentation
If you have targeted customers who are Gen X, Millenials, or Gen Z, then have used generation segmentation in your marketing. This approach can be seen as a hybrid of demographic and psychographic segmentation because consumers are grouped according to age as well as life experiences and attitudes.
Pros: Fixed grouping by year of birth; provides a richer view of consumers and key differences between groups
Cons: It is dangerous to assume everyone in the same generation share the same beliefs, attitudes, and experiences.
4. Behavioural Segmentation
Behavioural segmentation is based on the actions of the customer rather than perception or attitude. This can relate to their purchase activity as well as the process of consuming a product or service. Digital marketers usually segment customers using data from their interaction with the brand’s online assets such as website, app, social media, or even keyword searches.
Pros: Evidence-based and easy to quantify
Cons: Limited to the aspects of behaviour that you can capture, eg tracking online behaviour only
5. Persona Segmentation
This form of segmentation is a tool commonly used to flesh out a representation of your target customers. By combining demographics, psychographics, and behavioural information about consumers, you are able to see more nuanced differences between different consumer segments and commonalities within a segment that you may not have noticed before.
Pros: Useful as a foundation for your entire marketing strategy from product development to tactical marketing.
Cons: Not easily available anywhere besides on Dattel’s Voyager platform
Final words of advice: be clear about your marketing objectives and let that drive your segmentation. Use reliable sources of data to get your segmentation right, and you will be on the path to success!
If you are not segmenting your target audience or market, and instead of treating them as one block of like-minded consumers, then you may be unknowingly sabotaging your business.
Segmentation is a crucial building block towards connecting your brand to the right consumers. Dividing customers into different groups that are based on common characteristics, behaviours and needs helps you market to every segment distinctively and effectively. If done right, you will be able to understand your desired customers better, identify the most effective channels to connect with them, capture their attention, and get better returns on your marketing spend.
To start, here are five types of consumer segmentation you can try. Most of these segmentations will give you only a partial view of the consumer, so always consider combining two or more segmentation to improve your targeting accuracy.
If you want to create your customer segments click the link below
https://www.dattel.asia/uplift-malaysia-consumer-insights/
and we will get in touch with you.