How Can Market Segmentation Help You?

market segmentationIf you want to market and advertise effectively with your business, it is crucial that you learn about market segmentation. So what is it?  Simply put, it is identifying the main market for your products and services and narrowing down the market further into groups. This is has great value in helping to target your marketing efforts and get results!

How you categorize your audience varies based on whether you are a business-to-business marketer or a business-to-consumer marketer. The more you can learn about your market, the better. Some types of segmentation are actually determined by the market, such as behavioral segmentation.  As an example of this, consider the following:

Your prospect visits your website and sees a sign-up form to receive an important checklist that will help them accomplish an important goal. The prospect gives you his/her email address; your autoresponder sends them to the download page for the free checklist.  Now, the lead is on your email list. They have converted and have moved from cold to warm in terms of marketing. They have shown interest and given permission to you to send them information about your products and services.

Based on the fact that they downloaded your targeted checklist, you know something about them that you didn’t know before. You can now send planned autoresponder messages based on that download. You can follow up with them to find out how well the checklist worked. You can send tips about how to use the checklist. You can up-sell a paid product or service that is related to the checklist.  This shows how market segmentation based upon a prospect’s behavior can really help your future marketing efforts with clients who exhibit the same behaviors!

Other Forms of Market Segmentation:

In addition to behavioral segmentation, there are several other ways that you can categorize prospects for marketing purposes.  Othr areas of market segmentation include:

  • Demographics
  • Lifestyle
  • Life stage
  • Household
  • Preferences
  • Motivation
  • Industry
  • Purchases

All of these may not work for your particular business, or there may be even more, depending on the type of business that you have, whether you sell physical or digital products, and whether your business is product-based or service-based. All of these factors play into how you use segmentation, and how you perform it.

Tools to Help with Market Segmentation

No matter how big or small your business is, there are certain tools to help you to make this process more streamlined. Some of those tools include:

Active Campaign – You can use this or any similar marketing automation tool to do the research and crunch the numbers within its analytics. This gives you the ability to move people to different lists based on their behavior and where they sign up.

Lead Pages – This is landing page software that keeps stats and helps you automate the process of list building. List building is a great way to build your audience, and it is also a good way to segment the information you’re sending.

Google Analytics – Using this software on your website will enable you to find out, even before you build a list, what types of people are coming to your website to get the information you’re putting out there. If it’s not the type of people you’re expecting, you may need to adjust the type of content you’re publishing.

The more information that you can collect, the easier it will be to segment your market. With that information, you can define each audience within your market so that you can meet their needs more effectively. This will help you to target your marketing efforts which will help you to grow your business!

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