In this video, we will be talking about the top 5 ways to segment your audience.
Audience segmentation is integral to your marketing strategy and business success.
It brings with it so many benefits.
It helps match your products and services to their perfect audience.
It makes upselling and cross-selling easier because you really understand your audiences.
And, it helps you identify what works and what doesn’t.
So, what are the best ways to categorize, or segment, your audience?
Here are some that we think work wonders for your business.
1.) Industry segmentation
As a B2B business, your customers are other businesses.
But, it is important to treat them like individual customers.
Mass marketing and a generalized approach is no longer the way to do this.
Take a look at the industry you work with as a whole, and break it down into smaller segments that share similarities.
For example, your customers might all be in the design sector.
But, freelance artists will want different products to digital designers.
These smaller industry segments should be targeted on a personal level and receive a tailored experience to suit their specific needs.
2.) Geographical segmentation
Geographical segmentation works by segmenting your audience based on location.
If you are a company that works internationally, it is important to remember that different regions may require different things.
And, remember to ask yourself a few questions:
● Are they working the same hours as you, or do you need to schedule communications for a different time-zone?
● If your products are seasonal, will they be appropriate for the potential client?
● Is there a market-leader in your industry that has already won over this location?
You must also take into consideration cultural preferences and the size of the population, among other factors.
Segmenting audiences by location is simple to execute and can be an effective approach.
3.) Segmentation by customer sophistication
Customer sophistication is all about how familiar a customer is with what you do, and what you’re selling to them.
This isn’t specific to your brand, but rather your industry.
You can measure this on a scale of one to five.
At stage five, the customer is so familiar with your product that they’ve been there, done that and bought the t-shirt!
At this stage they may be bored of hearing about your offering, so it could be difficult to make a sale.
Though at stage one, a customer is completely new to your product.
This puts you in a great position when it comes to selling your services!
Knowing where your audience sits on this scale helps you tailor your approach to meet their understanding.
They say it takes approximately seven touch points before you a customer decides to purchase from you. So, take this into consideration too!
4.) Segmentation by tiering
This involves segmenting the customers based on what you expect to gain from them throughout your relationship.
This is called a Customer LifeTime Value.
Essentially, it involves you asking yourself how much profit you’ll be able to attribute to that customer throughout the duration of your relationship.
Account Based Marketing, or ABM, works in a similar way.
This method sees marketers target key accounts with an aim to get the most value from them.
5.) Needs-based segmentation
This approach involves segmenting customers by what their needs are.
This could include aspects such as:
● High quality products,
● Easy buyer journey
● Low costs
● And reliability.
The next step is to find out just how important each of these aspects is to your client.
You will then be able to segment your audience based on their specific needs and tailor your communications with them accordingly.
Low costs may be of high importance to some of your key accounts, so opting to shout about the easy buyer journey may not resonate as well as a focus on the price.
It’s up to you to decide which segmentation approach works best for you and your business.
There is not one that is better than another, instead, ones that work better for your company.
Segmentation is a significant step in the personalization process.
Breaking customers down into sections helps you target them with relevant, engaging content that meets their brand’s needs.
Webeo is a website personalization software that tailors website experience based on the IP address of the user.
This is an effective way for business to business companies to target the industries they want to impress with language, imagery, and a user journey bespoke to them.
I hope you found this video helpful. Please feel free to comment below the video should you have any questions or requests for future content, and one of the team will get back to you.
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