Ever-improving technology has us asking all kinds of questions. Will technology replace my job? Can artificial intelligence do it better than we can? Will robots take over the world? Of course, some are more realistic than others. While some tech-related questions present debates that are light-years away — some are valid. Especially considering the rise and growing success of marketing automation. According to Invespro, the MA landscape is thriving. And, it’s proving powerful! It drives an average of up to 14.5% increase in sales productivity. It sees a 12.2% reduction in marketing overhead. And, 80% of marketing automation users saw an increase in leads thanks to the software. So, it’s doing something right!
The more advanced technology becomes, the more marketers are capable of. Not only does it speed up and streamline processes, but it can cut the need for some processes altogether. Even the ones that have stood the test of time; like customer segmentation. This process helps marketers divide their audience into groups that share similarities. They can establish their target market and give them they content they need. This is where we find ourselves asking: could technology be the end of market segmentation?
Marketing software can access a myriad of valuable data. And with great data, comes great marketing opportunities! With increased ability to personalize, and a demand for individualization — is segmentation over?
The answer isn’t simple. It isn’t over, but it is evolving — undergoing a re-brand, if you will! To remain relevant, segmentation needs to adapt to keep up with growing options. The more data marketers can get their hands on, the more tailored their communications can be. Technology means segments will eventually be as narrowed down as possible: to the individual consumer. This is what we know as personalization.
So, how can segmentation evolve to keep up with marketing software? There are a few different ways it can compete with and support technology.
First, marketers can use it as a tool to aid personalization. Using segmentation in partnership with high-quality data is a recipe for success. This is great when establishing your dream customers, for example. By segmenting your existing customers, you can see who your ideal audience is. Then, using readily available data, marketers can explore similar companies that fit these criteria. Without first segmenting, marketers wouldn’t know what to look for. And without the advancement of technology, acquiring data would be much tougher. See? A match made in heaven!
Next, applying more than one of the types of market segmentation at a time could become the norm. There are several to choose from; but combining a few helps whittle you audience down. Use demographic segmentation, psychographic segmentation, geographic segmentation and behavioral segmentation together to gain incredible customer insights. This leaves little to the marketer’s imagination and removes the need for guesswork. Advanced technology grants us access to this data, making it easier than ever to get hold of.
Finally, marketers need to understand that things change fast. Segmentation must evolve; and so must your marketing messages. What once worked for your target audience may no longer be relevant. The rate at which our interests change has never been faster thanks to the internet. Stay ahead of the game and on top of your data. Keep an eye on changes, learn from mistakes, and adapt processes for ultimate success.
Personalization isn’t a new concept. Website visitor tracking, for instance, in its most simple form, goes back as early as the 1990s. And, even then, it was reliant on technology to work. However, marketers are still behind the curve when it comes to adopting total personalization. According to Dynamic Yield, marketers are at the beginning of their personalization journeys. Only 5% of marketers use data to find personalization opportunities through machine learning. And, 61% of companies don’t have the time or budget in place to make the most of personalization. So, in the meantime, segmentation is quite safe!
The segmentation process has its flaws, of course. Tarring everyone with the same brush isn’t always effective. And, it can sometimes do more harm than good! But customers will always share similarities and exhibit similar behaviors. That’s a fact. While marketers work towards personalization, segmentation provides excellent insight and helps tailor communications. For businesses that can see personalization on the horizon, segmentation is crucial. Especially if you want to see an improved CRO and ROI.
Epsilon Marketing found 80% of consumers prefer to do business with a company offering personalization. Market segmentation is a key step when it comes to website personalization. Webeo is a leading personalization software, offering unlimited personalizations. By segmenting audiences, businesses gain an understanding of their most valuable clients. Your website is the hub of your business and the aim should be making visitors convert to customers. Especially visitors from your key accounts or target segment. Discover the power of personalization and request a demo today!