As we live in the 21st century, even our basic needs have been changed and fine-tuned. Everyone has different needs that need to be satisfied, such as a baby needs diapers, a mum needs a stroller, a man needs a tie. Audience segmentation is about dividing your consumers into sub-groups to cluster them into more similar groups, such as for everyday needs, lifestyles or even for similar demographic profiles. This process enables the company to be more selective and personalized for their customers in a cost-effective manner. After segmentation, the company can decide on which segment to focus, or how much it should be focusing on other sections. There are different factors have effects on the company’s strategy such as; company resources, product variability, product lifecycle, market characteristics, and competitive activity.
We can divide Audience Segmentation into 5:
- Demographic: Age, gender, SES level, Education, etc.
- Geographic: Country, street, region, rural, city, etc.
- Geo-demographic: Combination of geographic and demographic variables
- Psychographics: lifestyle, social and personality characteristics
- Behavioral: purchase frequency, needs-based, customer loyalty, etc.
Steps of Audience Segmentation
We may talk about a few simple steps in audience segmentation;
- Identifying the target market
- Identify the expectations/needs of the Target group
- Create subgroups
- Fine-tune needs of the target audience
- Name market segments
- Form strategies (for example strategies for email testing, email deliverability) for each segment
- Implementing these email testing strategies, email deliverability strategies
- Regularly keep collecting data about your target market
Audience segmentation plays a significant role in market research which is to divide the market or consumers into subgroups of consumers who share similar characteristics where the researcher looks for the similar needs, similar demographics, common interests. In B2B companies’ market is segmented into the type of businesses or countries whereas in B2C companies it is segmented into categories of demographics, behavior, lifestyles. So, through it, different market segments are handled by different market programs like promotions, pricing, offers, etc. For segmentation the process called S-T-P is followed i.e. Segmentation, Targeting, Positioning where
Segmentation: Identifying the bases for segmentation and creating segment profiles
Targeting: Selecting a particular segment
Positioning: Developing market programs for each segment
Adobe Campaign and Audience Segmentation
Audience segmentation is about dividing the population into customer segments, enables the company to be more selective and personalized for their customer journey in a cost-effective manner, by creating sub-groups to cluster them into more similar groups, such as for everyday needs, similar lifestyles or similar demographic profiles.
Everyone has different needs and trying to satisfy everyone’s, or every segments’ needs are not feasible for most of the company. Adobe campaign helps in identifying the strong and weak suits of the company and focusing on the segment/segments that they can generate more income can boost everything in a company setting. Adobe campaign also enables the marketers to create segmentation based on languages and helps in creating strategies for multilingual emails. With the capability of multilingual email creation, a wide range of audience can be targeted
With the help of adobe campaign, companies can determine the market needs and your company’s power to gratify that need which would lead new market opportunities
Adjust and increase the specificity of your product according to your consumer, who rescues you from the deadweight of unsalable products in your product spectrum.
Allocate your funds for your targeted segment which leads to the more efficient use of media
Allocate your resources more efficiently
Serve your customers better by focusing on a specific target customer group which would lead to increased satisfaction of customer journey
For now, we can talk about these general benefits of marketing personalization, because every company has to consider different factors such as product lifecycle, market characteristics, company resources and so while deciding on their strategic approaches to audience segmentation.