You just started a business. You worked hard to make your dream come true. Now you need customers. But how will you find them? Trying to sell to everybody will not work. You need a plan to divide up all the possible customers into groups. This is called market segmentation. Advanced segmentation goes further to find your best specific customers. Read on to learn easy ways to split your market. Discover who wants your products the most. Find out how to focus your limited dollars for the biggest success. This article will explain it all simply. You can start segmenting your market right away.

What Is Advanced Segmentation and Why Is It Important?

Advanced segmentation is dividing your target market into smaller groups based on specific characteristics. This allows you to market to each segment in a customized way. It is important because it helps you reach the right customers with the right message.

Advanced segmentation does require effort and resources. But by understanding your customers in depth and personalizing your marketing for each segment, you'll attract more of the right customers and keep them coming back.

Types of Advanced Segmentation

There are 4 types of advanced segmentation: geographic segmentation, demographic segmentation, psychographic segmentation, behavioral segmentation.

Geographic Segmentation

Geographic segmentation divides your customers by location. You can separate them by country, region, city, or even by zip code. This helps you market to customers based on their location. For example, if you own a landscaping company, you may target customers in the suburbs differently than those downtown.

Demographic Segmentation

Demographic segmentation divides your customers by personal attributes like age, gender, income, education level, or marital status. This helps you market to groups of people with similar characteristics. For example, a clothing store may target teen girls differently than middle-aged men. Or a luxury car dealership may focus their marketing on high-income individuals.

Psychographic Segmentation

Psychographic segmentation divides your customers by their interests, opinions, attitudes, and values. This helps you market to groups of people with similar mindsets. For example, a news website may target politically conservative readers differently than liberal readers. Or an outdoor gear company may tailor their messaging to appeal to environmentally-conscious customers.

Behavioral Segmentation

Behavioral segmentation divides your customers based on their behaviors, like how often they buy, how much they spend, their brand loyalty, or how they use your product. This helps you market to groups of people with similar behaviors. For example, a restaurant may provide special offers to frequent diners versus casual customers. Or an online learning platform may target users who login daily differently than those who only access courses occasionally.

By using advanced segmentation techniques, you can gain valuable insights into your customers and create highly targeted marketing campaigns. But remember, the more specific your segments become, the smaller your addressable market will be. Strike a balance between broad and narrow segments for the best results.

Developing Segmentation Logic Based on Your Customers

To divide your customers into groups, think about how they are alike and different. Look at things like:

Age

Are your customers mostly young, middle-aged or older? Grouping by age, like Millennials (born 1981-1996), Gen X (born 1965-1980) or Baby Boomers (born 1946-1964) can help you market to them better. For example, younger customers may prefer social media while older ones like email and direct mail.

Location

Where do your customers live? Separating by region, urban vs rural areas or even by zip code lets you tailor your marketing to their needs. For instance, customers in warm areas may not need certain products in winter. Those in cities may value convenience more.

Interests and behaviors

What do your customers like to do? How do they use your product or service? Dividing by interests and behaviors helps you create the best experience for each group. For example, frequent or high-volume users may want premium offers while casual users prefer simplicity.

Needs and values

Why do your customers buy from you? What do they care about? Segmenting by motivations and priorities guides how you communicate with each group. For instance, budget-conscious customers care mainly about low prices while socially-conscious ones support companies that donate to causes they believe in.

Think about how these factors work together too. The needs of rural, older customers will differ from urban Millennials. But some may cross over. The key is understanding what makes each group unique so you can give them an amazing, tailored experience.

Best Practices for Advanced Audience Targeting

Define your audiences

The first step is to determine the different groups of people who might buy your product or service. The more specific you can be, the better. For example, instead of just “parents,” consider “suburban parents of elementary school-aged kids.”

Focus your messaging

Once you’ve defined your audiences, create marketing messages targeted directly at them. Discuss how your product or service meets their unique needs and interests. For example, for the suburban parents, focus on kid-friendly features and convenience. For young professionals, focus on affordability and simplicity.

Choose the right marketing channels

Different audiences consume information in different ways. Select marketing channels that your target audiences actually use. For example, suburban parents may be most active on Facebook, Pinterest, and family-focused blogs. Young professionals may prefer Instagram, YouTube, and podcasts. Meet your audiences where they already are instead of trying to draw them into channels they don’t use.

Track your results

As you launch your advanced audience targeting campaigns, be sure to closely monitor how each audience segment responds. Look at metrics like website traffic, time on site, social media likes and shares, email open rates, and sales. Make note of what’s working and not working for each group. Then optimize your messaging and channels to improve your results over time.

Your Top Questions Answered on Dividing Your Market

What's the difference between market segmentation and advanced segmentation?

Market segmentation groups customers in broad ways, like by age, gender, or location. Advanced segmentation divides the groups into more specific segments. For example, instead of just "young adults," you might have segments like "college students" or "young professionals." This helps you market to each group in the best way.

Why is advanced segmentation better?

Advanced segmentation lets you tailor your marketing to match each segment closely. You can create messages, offers, and products that meet the needs of each segment. This means higher sales and happier customers.

What is market segmentation?

Market segmentation means dividing your customers into groups based on things like age, location, buying habits, and interests. By splitting your market into segments, you can better meet the needs of each group.

Why should I segment my market?

Segmenting your market has many benefits. It helps you:

•Focus your marketing. You can create campaigns targeted at each segment. This is more effective than a one-size-fits-all approach.

•Better understand your customers. You'll gain insights into what each segment wants and how to reach them.

•Improve customer satisfaction. You can tailor your products and services to meet the needs of each segment. This will make your customers happier.

•Increase sales. Reaching the right customers with the right message will lead to more sales. Targeted marketing just works better.

How many segments should I have?

There is no "right" number of segments. It depends on your industry and how specific you want to get. 3 to 6 well-defined segments are good for most small businesses. If you have too many segments, it gets hard to develop targeted strategies for each one. But more segments mean a closer match with customers' needs.

Conclusion

So there you have it. Market segmentation can feel overwhelming at first, but taking it step-by-step helps make it doable. Start by dividing your customers into broad groups based on basic traits like age or location. Then get more specific by splitting those groups into smaller segments based on needs and behaviors. The more tailored your segments, the better you can market directly to each one. Be patient with yourself as you fine-tune your approach. The payoff of higher conversion rates and sales will make the effort worthwhile. Now get out there, segment your market, and watch your business grow!

Advanced Segmentation: How to Divide Your Market

Website User Experience Analysis: Making Your Site Shine

User Experience (UX) Design Principles to Increase Leads

Design Thinking and UX Strategy for Marketers

Our Newsletter