The complete glossary for marketers
Segmentation in marketing is using qualitative and quantitative research to identify defining characteristics that are likely to influence a purchase decision. Marketers use that information to target individuals by group (also called segments or audiences) based on shared attributes.
For example, you may want to segment loyalty card members differently than those that are first-time shoppers.
Segmentation is used in traditional and digital marketing to create specific messaging for each audience. Segmentation is important because it allows you to focus on different messages for different audiences. When your message is relevant to your audience, it’s more likely to convert.
Segmentation is used widely in digital advertising and content marketing. When creating a digital marketing campaign, targeting audience segments is an integral input into ad content, email, and landing page creative and messaging.
When beginning a marketing strategy, one of the first questions you’ll hear is, “Who is your target market?” This question is answered by compiling and analyzing data through market research, web analytics, and surveys.
Your target market will include a variety of people looking for your product or service with different motivations and desires. Creating a marketing segmentation strategy breaks your target markets into smaller audiences so you can speak to them in a more personalized manner. Each segment can reflect consumer demographics, brand loyalty, and a host of other variables. If your segments are exceptionally diverse, you may wish to provide them with completely different experiences.
Demographic targeting is the most common form of segmentation. The most common form of demographic targeting is by age & gender, but there are many factors you may want to consider as outlined below. If your product is women’s running shoes, targeting women from the age of 18 - 55 and creating messaging specific to that segment would push your content and/or advertising towards users most likely to have higher engagement.
Geographic targeting (aka geotargeting) pinpoints where you want to promote your products. If you sell your products and/or services in the United States, you wouldn’t want to be promoting it in other areas of the world. If you’re selling winter clothes to your US customers, promoting your products earlier in the fall to northern US states than to southern US states may create stronger ROI.
If your products/services are global, geo targeting also allows for creating messaging in the native language of the country or region you’re serving.
You can geotarget at a high level, or very granularly:
Psychographics target based on customer interest and personal views, hobbies, interests, opinions and attitudes. Two women between the ages of 35 - 45 who live in the same geographic region will have different interests, hobbies and opinions. For example, psychographic targeting creates the ability to target a user who appreciates high-fashion items over shopping at a big box retail location.
Behavioral targeting is when messaging is presented to a web user or recipient of email based on collected data like the user’s browsing activity, past apps and websites visited, engagement data for web pages they have visited, and search history.
Another way to segment visitors is by how they’ve reached your web property and what they’ve used to see it. For example, if you’re marketing a new app that is only available for Apple mobile devices, utilizing technographic profile data allows you to create a segment that excludes all desktop and tablet devices, as well as excluding other mobile device manufacturers outside of Apple.
Streamlining your segmentation process doesn’t end when you upload your content and creative to your campaign or digital property. A/B testing creates a way to test a variety of creatives and content to pre-defined audience segments to continuously improve campaign emails, apps, and website experiences in various parts of the funnel.
A/B, A/B/n and multivariate testing are used to create a variety of messages for audience segments to learn which message works best for each segment. Monetate Test & Segment™ is designed and built for marketers to create engaging customer experiences that increase conversions and revenue.