How To Create Marketing Segmentations For Your E-Commerce Store?

What Is Marketing Segmentation?

Marketing segmentation is strictly what it seems like . It’s a business strategy that takes your target market and divides it out into smaller, more specific focus groups with defined similarities. You could segment out your target market during a bunch of various ways like demographics, interests, locations, needs, or simply about any characteristic that you simply think could also be relevant to your business.

Why Your Business Needs Marketing Segmentation

So, why is it important for your business to try and do this market segmentation? Let’s get into it.

First of all, it just generally allows you to get a far better idea of who your target customers are and the way to speak with them better. The result? MORE PRACTICAL MARKETING. Who doesn’t want that?

With market segmentation, you tailor your marketing campaigns to a really specific audience meaning you'll specialise in what is going to resonate with them and drive a better conversion rate.

But you don’t just need to take my word for it. The analysis found that over a five-year period, “businesses that successfully tailor product and repair offerings to desirable customer segments post annual profit growth of about 15%.”

Plus, a survey reported that 81% of executives said customer segmentation was a critical tool for growing profits.

Here are a couple of massive benefits you'll get from market segmentation:

• Increase conversions: When you’re targeting people that are already susceptible to want your products and services and you’re using extra-targeted language to talk on to that audience, they’re getting to convert more.

• Higher customer satisfaction: Your customers feel more valued because you show you really understand them.

• Identifying more niche market opportunities: once you delve into a more specific market segment, you’ll learn more about those customers and can then have a far better chance of identifying more niche markets that your product or service will speak to.

• Make your brand stand out: If your competitors are more general, while you provide focused support or communication, that market segment will see you because the expert of your competitors.

So many benefits of market segmentation! Are you sold yet? Good!

The 4 Main kinds of Market Segments

Since there are an endless amount of the way people are often different from one another , there’s also plenty of various ways you'll approach creating customer segments. In the true spirit of market segmentation, the marketing community *ahem* segments them out into four types: demographic, psychographic, geographic, and behavioral.

1. Demographic Segmentation

Often the foremost common and easiest to create, demographic segmentation covers the standard, factual or statistical type information about people. Think, all the various “demographics” you would possibly find in your Google Analytics review.

Some samples of demographic segmentation include:

• Age

• Gender

• Income

• Occupation

• Family size

• Race

• Religion

• Marital Status

• Education

• Ethnicity

These demographics are especially great for businesses whose target customers are people or consumers (B2C companies).

If your business’s target market is other businesses (a B2B company), you'll want to think about these demographic segmentation characteristics (some marketers give these characteristics their own category called firmographic segmentation):

• Company size

• Annual revenue or profit

• Industry

• Job function

• Company age

• Number of office locations or sites

• Number of employees

When you create a demographic segmentation, you’d choose one among these characteristics and group everyone in your audience that matches that demographic – that’s your demographic segment.

For example, if you've got your target market or you’re watching your customer base and 40% of them are 25-30 years old, 30% are 31-35, 20% are 20-24, and 10% are over 36. Each of those age ranges may be a demographic market segment.

2. Psychographic Segmentation

Psychographic segmentation focuses on grouping your audience by their personalities or inner traits. These aren’t quite as obvious as demographics because they don’t show up on the surface.

These are some samples of psychographic segmentation:

• Values

• Goals

• Needs

• Pain points

• Hobbies

• Personality traits

• Interests

• Political party affiliation

• Sexual orientation

Some of this information you'll still find through website monitoring software like Google Analytics because it can track data like what other sites your visitors attend . However, you’ll likely got to get tons of this information from other sources like customer surveys or interviews.

Psychographic segmentation are often especially useful choose your brand or marketing messaging. We all know that emotions and values are often an incredibly powerful marketing tool to make conversions, so this sort of segmentation can assist you design your marketing strategy around topics your target segmentation feels strongly about.

For example, if one among your psychographic segments really values environmental sustainability, you’d want your marketing campaigns directed at that segment to specialise in how your product is environmentally friendly.

3. Geographic Segmentation

Geographic segmentation is, you guessed it, market segmentation supported the customer’s geographic location. This sort of segmentation is particularly useful if you've got multiple brick-and-mortar locations or offices.

These are a couple of ways you would possibly believe creating a geographic segment:

• Zip code/post code

• City

• Country

• Population density

• Distance from a particular location (like your office or store)

• Climate

• Time zone

• Dominate language

Different regions and locations can have an enormous impact on your customer’s lifestyle, needs, and buying habits, so they’re a crucial thing to think about . Geographic segmentation is another characteristic which will be fairly easy to trace through your Google Analytics or other data you have already got like shipping locations, so it’s worth taking a glance at albeit you opt to not actually create a market segmentation out of it.

For example, geographic segmentation would be useful to incorporate if you’re alittle local business that only services a selected location so you’d want to focus on customers based therein location. Another example might be if a part of your target market lives during a country while another part lives in an urban city – in each segment you’d want to tailor your marketing efforts to reflect the unique struggles or experiences that accompany either urban or rural living.

4. Behavioral Segmentation

Behavioral segmentation focuses on the actions your audience takes. Almost like psychographic segmentation, behavioral segmentation can often take a touch more research and data than geographic or demographic because it goes deeper than surface-level info.

However, unlike psychographic, behavioral segmentation tends to focus more on purchases and interactions instead of opinions or thoughts.

Here are some samples of behavioral market segmentation you'll want to consider:

• Purchasing habits

• Brand interactions (for example, following or interacting on social media vs calling customer service)

• Spending habits

• Customer loyalty

Actions taken on an internet site (such as reading a blog or signing up for your newsletter)

Behavioral segmentation are often especially useful because it often relates on to how your customers react to your brand. The sort of customer that reads blog posts could also be different than the sort that subscribes to a newsletter or a loyal customer probably won’t need the maximum amount convincing as a prospective customer might.

When developing your marketing strategy, you actually want to ask yourself what behavioral customer segmentation you’re marketing to because it can dramatically change how you interact with potential customers. For instance, you almost certainly act differently around your best friend than you are doing with someone you’ve just met, right? Same thing should accompany your marketing strategy counting on if the group of individuals is current customers or new customers.

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