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Posted 05/30/2023 by WebMaxy

Why audience segmentation is crucial for your business growth?

Why audience segmentation is crucial for your business growth?

Marketing can help you reach your target audience and increase brand awareness. Most often the marketing is done for a large audience. By doing audience segmentation you can target your customers effectively with tailored messaging and build strong relationships. 

You can create audience segments based on different factors like their preferences, demographics, and attributes. You can also create subgroups based on customers’ behavior and purchase history. Use psychographics for audience marketing if you have access to insights like the audience’s personality type, attitudes, and values. 

Earlier, marketers preferred creating uniform messaging for all to save time. However, later they realized by using a refined approach they get a better customer response. It helps them to target customers based on their needs and pain points. 

In this blog, we will define audience segmentation and give audience segmentation examples. This information will help you understand how target audience segmentation is key to a successful marketing strategy

What is Audience Segmentation? 


Audience segmentation definition: Audience segmentation is the process of grouping your target audience based on similar needs, shared values, or characteristics. This enables marketers to create targeted campaigns with tailored messaging for different groups, build stronger connections, and boost conversion rates

Why is Audience Segmentation Important? 

When you use the same messaging for everyone, it may or may not resonate with everyone. A more focused approach can help you ensure that your messaging is relevant to the maximum of your target audience. Audience segmentation has many benefits for an organization that we have mentioned below.

Defines your target audience 


In audience segmentation, you have to create audience segments based on different attributes and characteristics. This requires you to identify and define your target audience clearly. 

Personalized messaging 

Audience segmentation can help you in tailoring messages based on the attributes of specific groups. This way you can make your marketing messages resonate more with your target audience. 

Increase conversion rates 


Since audience segmentation helps in creating personalized messages. It shows the prospective customers how your products or services will help them. This leads to an increased conversion rate

Builds strong customer relationships


With audience segmentation, you can understand your customers’ needs, wants, and pain points better. This can aid you in building meaningful customer relationships and increase customer loyalty. 

Identify growth opportunities 


From segmentation, you can better understand your audience’s pain points and problems. This information can help you know the scope of improvement and discover new development opportunities. 

Types of Audience Segmentation 

There are many factors on the basis of which marketers can group their target audience. Most often marketers group their audience according to age, gender, geographic location, behavioral traits, etc. However, audience segmentation strategy should depend on the products or services you’re providing. 

In this section, we will discuss the different ways of audience segmentation that you can use in your marketing strategy

1. Demographics 


This is the most commonly used method for audience segmentation strategy. It involves segmenting your audience based on different demographic attributes like:

  • Age
  • Gender
  • Occupation
  • Income
  • Education
  • Nationality
  • Religion
  • Economic condition

The major reason demographics is used by most of the marketers is that it delivers results. You can also use a location-based strategy to approach the customers when they’re likely to need your product. For example, if you sell woolen clothing then the right time to approach customers would be before and during the winter. 

2. Behavior 

This type of audience segmentation goes deeper than demographics. It involves analyzing customers’ behavior like their purchasing patterns, when they purchase, how often they purchase, and why they purchase your products or services. 

Someone who purchases your product once in a while and someone who purchases your products often needs different messaging. This is because both these customers look at your product differently and have distinct needs for purchasing it. 

By doing behavioral segmentation, you can tailor your messages accordingly and reach the audience that are likely to convert. You can create behavioral segments for customers who have shown interest, first-time customers, regular customers, and customers who have switched to other brands. 

3. Interests 

As you know, different people have distinct interest areas. For example, some people love outdoor sports while some enjoy playing indoor games. Similarly, you can segment your audience based on their interest areas and target them with the right messaging. 

For instance, you have got customers who are interested in a particular sport. Then, you can target those customers with personalized ads for products related to that sport. This will increase the chances of them buying products from you. 

Segment your customers based on their interests. You can also conduct surveys to gather information about your customers from them. You can ask questions related to their needs, wants, interests, and expectations. From this information, you can conduct audience segmentation and target your customers effectively. 

4. Buying journey stage 


This type of audience segmentation involves segmenting customers based on their buying journey stage. The buying journey is divided into 3 stages such as awareness, consideration, and decision stage. 

A prospect who has just got to know about your product has a different thought process than the person who’s in the decision stage. By segmenting your customers based on their buying journey, you can send them different messages. You can ensure that your messaging is relevant to their buying journey stage. 

5. Level of engagement

People that engage with your brand frequently have different opinions than the people who interact irregularly with you. You can do audience segmentation based on the level of engagement. For example, when a customer sign-up for your newsletter or subscribes to your email list. You can understand that they are interested in your product or service. They are more receptive to your messages. 

However, this doesn’t mean that you should ignore the customers that are less interacting with you. Instead, you need to give them more attractive offers and promotions to entice them to become your customers. You can target these customers with tailored messaging and win-back offers. 

6. Device usage 


Your users might use different devices to access your website. As smartphones have become common, most of the people might view your website on mobile devices. Thus, your website needs to appear perfectly on distinct devices. 

You need to make sure that you provide a good customer experience on different devices. Make sure that your formatting and content size appears appropriately on mobile screens. Try and make your CTA buttons bigger so that people can easily click on them while using a mobile phone. 

Doing audience segmentation based on the device usage of customers can help you reach them effectively. You can optimize your messages for mobile and desktop users. You can create different images and content for mobile & desktop users. For mobile users, you can keep your messages short and simple. However, for desktop users, you can put big messages with high-resolution images. 

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How to Use Audience Segmentation in Online Marketing? 

You can use audience segmentation in various marketing channels. It can help you to reach your customers effectively. Let’s discuss the different marketing channels where audience segmentation can be helpful. 

1. Email Marketing 

With Webmaxy eGrowth email marketing, you can collect information about your website visitors. You can use surveys and forms to get detailed information about customers. When a customer subscribes to your email list, you can ask subscribers to provide details about them. 

The more information you collect about your customers, the better you can do audience segmentation marketing. You can do audience segmentation based on different attributes in the audience builder feature in Webmaxy eGrowth. Then, you can use these segments in email marketing to deliver personalized messages to these customers. 

2. SMS Marketing 

You can use audience segmentation in SMS marketing campaigns. You can segment mobile device users and send them tailored messages. If you have detailed information about your customers then you can upsell, cross-sell, and give discount offers. 

With Webmaxy eGrowth, you can automate your SMS marketing and send messages to customers at the right time. Based on their recent actions, you can retarget them and boost your sales. 

3. Facebook Ads 

You can use Facebook Ads to create targeted campaigns and increase customer engagement. Facebook gathers data about users and allows you to target customer segments based on your preferences. Facebook enables you to decide the target audience segment on the basis of gender, location, interests, and behavioral patterns. By understanding your customers you can do audience segmentation easily and create impactful messages. 

4. Chatbots

Most often people interact with chatbots on websites when they have queries or questions. You can check how different people have interacted with chatbots and send them personalized messages accordingly. For example, a customer interacted with the chatbot to know the product features. Then, you can send them a targeted message accordingly. 

You can use the information collected from chatbots to do audience segmentation. When people start conversations with a chatbot you can ask them to provide their email address, contact info, etc. Based on this gathered information from a chatbot, you can build audience segments

Audience Segmentation Best Practices 

You can use audience segmentation for distinct marketing campaigns. Make sure you target the different audience segments with the right marketing channels. In this section, we will give audience segmentation best practices that you must follow for marketing success.

1. Keep your audience segments broadly defined

The purpose of audience segmentation is to be specific in the marketing message. However, if you become too specific in your approach then the number of people in each target audience segment will be too less. This way you’ll need to put in more time and effort for writing messages for various segments. 

You can do audience segmentation but keep your groups broad enough to have sufficient people in them. For example, instead of creating a group of middle-aged customers who shop during Black Friday in the USA, you can create a group of customers who shop during holidays in the USA. A broader segmentation gives you room for creativity in your marketing messages and targets more customers effectively. 

2. Try different audience segments 

Supposedly, you have created an audience segment but even after targeted messaging, you are not getting results. Then, probably you need to carry out the audience segmentation process again. You should try to mix and match different audience segments till the time you don’t get the expected results. 

You can check that your audience segment is apt by finding answers to these questions. 

  • Is this group relevant and has enough similarities? Are they likely to take action?
  • What sets this group apart from others? Is it broadly distinguishable?
  • Does this group have enough number of people?
  • Which marketing channel is this group active on? Is it feasible to target this group?

3. Define your goals and measure them 

Setting goals in marketing is crucial to measure success. You need to define what results you expect from audience segmentation for a specific marketing channel. For example, you are reaching out to 500 prospects and you expect at least 10 of them to subscribe to your email list. You have created personalized emails for an audience segment and you expect at least 20% of click-through rate. 

Make sure that your audience segmentation goals align with your business objectives. You can set goals and track them to measure your progress. It can also provide you with valuable information about your marketing plan’s effectiveness. 

4. Utilize different marketing channels 

You can use audience segmentation to target different groups of customers on distinct marketing channels. As you know not all your customers will be available on a single marketing platform. Thus, you need to use various marketing channels to reach the maximum of your target market. 

You can reach out to your prospective customers on social media platforms where they are most active. Then, you can boost your post and target specific audience segments to grasp their attention. You can use content marketing to post your blogs or articles where your prospective customers are available. 

Utilize different marketing channels for reaching out to distinct audience segments. This will not only increase your reach but boost your sales as well. Find ways to interact and engage with your target audience on distinct marketing platforms to bring their interest to your products and services. 

How to do audience segmentation with Webmaxy eGrowth? 

You can carry out audience segmentation with the help of Webmaxy eGrowth. You first need to create an account on Webmaxy eGrowth. Once you have created the account, go to the dashboard. Click on the third option of, “Audience”. In the audience dashboard, you can see total contacts, lists, and segments. 

In the audience segmentation feature, you can import lists with information about your customers. Then, you can create segments from lists based on different attributes and recent actions of customers. You can use these segments in your email marketing and marketing campaigns. By segmenting your audience, you can target them effectively and boost your sales. 

The Conclusion 

If you think that by using the same messaging for everyone, you can create the same impact. Then, you are wrong as there are distinct groups within your target audience. The needs and expectations of every group might be different than the others. Therefore, to influence different groups within your target market you must use the right messaging. 

First, you need to do meaningful audience segmentation. It means creating audience segments based on distinct attributes or recent actions. After this, you need to analyze the needs, wants, and expectations of these groups and create the right messages accordingly. By creating tailored messages you can grasp the attention of your prospective customers quickly and get more conversions. 

Webmaxy eGrowth is an eCommerce management platform that comes with a plethora of features. It has features like audience segmentation, KPI dashboard, conversion dashboard, marketing insights, social campaigns, email campaigns, marketing automation, Whatsapp marketing, customer loyalty, and a help desk. 

Schedule a call with our experts to learn more about Webmaxy eGrowth or email us at info@webmaxy.co

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FAQs: Audience Segmentation

Why is audience segmentation important?

Audience segmentation helps to target the audience effectively with more personalized messages. You can create messages as per the specific needs and pain points of different segments. This way you can create a better impact and get more conversions. It also helps to build strong customer relationships as customers tend to believe that you understand their problems.

How to do audience segmentation?

You can do audience segmentation on the basis of different attributes, buying journey stages, or recent actions of customers. However, make sure that the segments you create have a sizable number of people. To create the right audience segments you should first create a buyer persona. Then, you can do different types of audience segmentation such as demographic, psychographic, geographic, and behavioral.

What are the different types of audience segmentation?

Audience segmentation can be done on the basis of differences among the target market. The 4 different types of audience segmentation are as follows:

– Demographic 

– Psychographic 

– Geographic 

– Behavioral

How can audience segmentation enhance your inbound marketing efforts?

Audience segmentation analysis can help you tailor your marketing messages as per the specific needs and expectations of different segments. This way you can create a better impact and get more conversions. Marketing audience with segmentation helps to increase the relevance and effectiveness of the marketing messages.

What could a marketer use in the engage stage to engage with different segments of their audience?

Marketers can use surveys and polls on social media to engage with different segments of their audience. By engaging with your target audience you can bring their interest in your products or services. You can make people aware of your offerings and increase your sales.

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