Email Segmentation: An Overview of Key Market Segmentation Categories & Their Uses (2023)

You know you have to have better and faster insights to run a successful company. Plus it is also a necessity to have a good marketing strategy, and a good strategy knows the importance of segmentation. 

According to MailChimp’s user data, campaigns that were segmented got 14.37% more clicks and 64.78% extra clicks. Now that you have read the stats and know it’s necessary, do you know what can be the main categories of segmentation? And another important aspect is how you can use these categories to get better click rates. 

Key Market Segmentation Categories

An important and widely acknowledged category of STP is demographic segmentation. This type of segmentation deals with gender, race, age, and education as well. This leads us to the conclusion that people who have the same or comparable demographics will have comparable wants. 

For specific products, you can get specific demographics that will act as the market for that product. A single firm can produce skin care for men and the same can produce skin care for women. 

Automobile manufacturers frequently divide their customer base into income-based segments and promote various automobile brands and models to each section. A single business may have premium, budget, and mid-range brands.

Demographic information can be gathered through a variety of methods. Asking your clients directly is one option. Getting the data directly from customers may take some time, but doing so will aid in ensuring its accuracy. You should exert caution and be respectful in the way you ask and give people various response alternatives while acquiring accurate results using this course of action. 

Also, Read: The Complete Guide to Customer Segmentation & How It Can Help Your Marketing Plan

Demographic segmentation and firmographic segmentation are the same ideas. This technique examines organizations rather than individuals and considers a company’s personnel count, clientele, number of locations, or annual revenue.

A few different behaviors to consider are:

1. Online purchasing patterns: You might take into account a user’s online purchasing patterns across all websites, as this may be related to their propensity to make an online purchase from your website.

2. Actions taken on a website: The actions users perform on your online assets can be tracked so you can learn more about how they interact with them. You can examine a visitor’s time spent on your website, whether they read articles through to the end, the kinds of information they click on, and other factors.

3. Benefits sought: This is the demand that a client is attempting to satisfy through product purchase.

While pursuing smaller businesses with a set price, more straightforward solution, a corporate software provider may approach a multinational company with a more comprehensive, configurable suite.

It can be included in demographic segmentation as a subset. This strategy organizes clients according to their actual locations on the basis that it’s likely that residents in the same region will have similar wants. For larger businesses looking to diversify into new branches, offices, or locations, this technique works better.

Different types of geographic segmentation exist. The most fundamental is locating users according to their geographical areas, such as their nation, state, county, and zip code. The features of the region in which a consumer resides, such as a climate, population numbers, and whether it is urban, suburban, or rural, can also be used to identify that client. It can be a possibility that you have to be more specific when you are trying to find traits that one county may have in rural, suburban, and urban areas. 

If you want to target people in a certain area with an advertisement, such as if you’re promoting a small local business, you must divide the market according to location.

Consumer behavior, consumer activities, and customer decision-making patterns are all important components of behavioral segmentation. Based on their previous interactions with markets and products, this strategy divides consumers into categories. This strategy assumes that consumers’ past spending patterns predict what they would likely buy in the future, even if purchasing patterns can vary over time or in response to external factors.

As an illustration, younger generations are more inclined to purchase national brands of beer than older generations.

Psychographic segmentation aims to categorize consumers predicated on their style of living, character, viewpoints, and preferences. This approach to market segmentation is frequently the most challenging. Since these features (1) could change easily and (2) would not have readily available objective data, doing this might be more challenging. However, because it groups people based on intrinsic motivations rather than external data points, this strategy may produce the strongest market segment results.

Suppose you run a furniture and home décor business, and your target market is honeymooners in their 20s and 30s who have household incomes of at least $60,000. There are some participants that are converting but others don’t. When you factor in psychographic data, you can discover that customers who buy your goods frequently place a premium on social connections and friendships as well as environmental awareness. Based on this information, you may produce advertisements that feature people hosting guests in their homes and highlight your brand’s commitment to environmental sustainability.

Many of the methods used to obtain demographic data can also be used to collect this information. You can survey your current clients to get this information.

Top 3 Uses of Market Segmentation

After you have learned about what is email marketing and the types of market segmentation, what can be the use of market segmentation? Market segmentation plays an important role in finding how much sales and growth potential the new market has. You can match your target audience and your analysis to better organize your research. 

This segmentation helps to better separate your audience and meet your targets. You can look at the predetermined criteria such as demographics, behavioral preferences, goals, requirements, and shared hobbies. 

Market segmentation is used by many companies to produce information that can be helpful in analyzing users’ needs and service demands in the future. Customer needs research can be also said as practical research to identify customer needs and habits. Proper research and analysis help in identifying any gaps and problems in services and also help in attaining feedback or follow-up.

Conclusion

Companies divide their potential clients into many categories through a process called market segmentation. This enables more precise targeting across several marketing efforts by enabling the organization to commit the right resources to each distinct segment.

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