The Technical Work of Email Marketing

Is a pet dog an ideal birthday present for everyone? What about a football or a makeup brush?

Products must be targeted to a certain buyer, who comprises a target market.

And this is why powerful segmentation strategies are important for the efficacy of your business.

In this article, we will talk about:

  • What is marketing segmentation
  • What are examples of segmentation strategies
  • What benefits can you get from it

Let’s get started! 

What Is Marketing Segmentation?

Market segmentation is becoming an increasingly important element of a solid marketing strategy. This action may determine the difference between success and failure for businesses operating in competitive market landscapes such as eCommerce.

Market segmentation is fundamentally the technique of breaking your target market into accessible segments.

Segmentation can divide a market into subgroups based on:

  • Demographics,
  • Requirements,
  • Priorities,
  • Shared interests or
  • Other psychographic or behavioral characteristics.

Understanding your market allows for segmentation to be used to  target your product, sales, and marketing initiatives.

This strategy may propel your product development cycles by guiding how you generate product offers for distinct groups such as men vs. women or high vs. low income.

What are Examples of Marketing Segmentation?

Funnel Stage Segmentation

The marketing funnel is a visual illustration of the process of converting B2B leads into clients.

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It is designed to function in a downward direction (thus the funnel), gradually converting leads into consumers.

Picture it like this: Marketers, like a funnel, cast a wide net to gather as many leads as possible, and then gradually nurture potential consumers through the purchase decision, narrowing down these possibilities at each step of the funnel.

People need to know that there isn’t a single version of the funnel that everyone agrees on. Some have a lot of “stages,” while others have a few, and each one has a different name, as well as different actions by both the business and the customer.

If you’re interested in how it works, here’s the sales funnel and email marketing article you might want to check out.

Demographic Segmentation

This answers the question “who”. Demographic segmentation groups people using different variables.

Companies can use demographic segmentation instead of trying to reach everyone in the market. This way, they can spend their time and money on the segments that have customers who are most likely to buy and are therefore the most valuable to them.

Demographic segmentation looks at things that aren’t unique to each person, using variables like:

  • Age
  • Gender
  • Race
  • Income
  • Educational level
  • Religion
  • Occupation
Powerful Segmentation Strategies

Demographics are the most common way to do segmentation. As you can see, this is a simple way to group customers, but it is still very powerful. 

Imagine this: you’re tasked with marketing sci-fi or war-based video games. Demographics can help you in filtering out younger individuals ages 18-30. You wouldn’t want to sell sci-fi or war-based video games to grannies, do you? 

Another example of marketing segmentation based on demographics is to combine age and income information. Picture this: to target older, wealthy retirees who want to move to Florida and sell their beachfront property, you need to get the “age data” and “income status” of each of your prospects. In this way, you’ll be able to successfully target those who are fitting for what you’re marketing.

Persona Segmentation

Personas are customer profiles to mimic a real customer. They’re based on a person’s demographic information, likes and dislikes, goals and values, pain points, and other factors.

In this case, they can help you figure out how to get to know people on a more personal level, while also giving them the right messages, offers, and products at just the right time.

Powerful Segmentation Strategies

For example, two 30-year-old men could be living very different lives. One is married with kids, has a high-paying job, and has a new mortgage, while the other is still living at home and doesn’t know what to do with their life. When you think about this example, you can imagine that their shopping habits will be very different. 

Demographic segmentation played an important role in affirming their age data, but persona segmentation made that more relevant as we discovered their lifestyle habits. 

From this example, we can draw out that the chance of your product being sold is higher for the man who had a high-paying job. 

Interest Segmentation

Interest segmentation, or psychographic segmentation, focuses on what customers like to do. This strategy focuses on the most specific markets, where attractiveness, quality, and brand recognition are more important than cost considerations. 

Psychographic attributes are the ones that aren’t obvious when you look at your customer, unlike demographic segmentation. Instead, it needs a more in-depth look.

Powerful Segmentation Strategies

Here, we might look at customers and think about how they are different from each other:

  • Personality Traits
  • Life Goals
  • Hobbies
  • Beliefs
  • Lifestyles

A psychographic segmentation approach can include marketing high-end musical equipment to music fans who wish to gather the greatest gear or use it as a status symbol in their display collections. These people don’t care about price, but the product and the value that they place on it. This difference is what interests them. 

Purchase Activity Segmentation

The purchase activity segmentation approach is when you divide your client base by the number of purchases they made during a given time period.

All of these details can aid you in gaining a better understanding of your consumers’ purchasing patterns and financial situation.

Powerful Segmentation Strategies

This approach enables you to dig further into additional data, such as average basket size and total revenue by segment, in addition to the number of sales made by your consumers per given time. You’ll be able to boost your web marketing strategies by combining these data.

Consider two groups of consumers. One group made four transactions in a month while the other group made three purchases in three months.

With this data, who do you think has the most frequent purchase activity? From here, you can better understand your customer’s purchasing behavior.

Product Usage Segmentation

Product usage segmentation is a way to classify your users into groups based on how they use your product. If product usage is about how users interact with your product, product usage segmentation is how you group and describe your users based on those interactions.

For example, when you open a food delivery app, the app is likely to record not only what you order, but also what options you looked at, how long it took you to make a decision, and how quickly your food arrived.

Product usage is a way to describe how people interact with a product. This can include a lot of different types of data and user actions.

Powerful Segmentation Strategies

The best thing about product usage segmentation is that it gives us a better answer to the question “What should we build next?” In this case, if your segmentation helps and influences your product roadmap, then good for you. 

Email Activity Segmentation

Using email activity segmentation, you divide your email list into small groups based on things like their traits, demographics, or habits.

Powerful Segmentation Strategies

You wouldn’t want an invitation to an event in a city you’ve never visited, right? Or a deal on baby things while you’re in your early twenties and not even thinking about having children.

Most likely, this kind of email will be discarded, and you will unsubscribe as well.

Before you start an email marketing campaign, you need to divide your emails into groups. It makes sure that you’re only sending relevant and personalized content to your leads.

Lifetime Value Segmentation

Client Lifetime Value is the expected average income generated by a single customer over the course of their lifetime. In other words, it is the entire income that a business might anticipate from a single consumer. Businesses utilize the CLTV statistic to determine the most profitable consumer categories.

CLV segments enable you to categorize consumers based on this amount in order to deliver them relevant content and activate segment-based flows. 

Powerful Segmentation Strategies

Using CLV is a good idea when you have a long-term relationship with a customer.

For example, when they pay for TV or have a cell phone plan. After the first year, you can see how much money they spend on the subscription drops off. This is good because it lets you know when people are going to stop paying for the service.

Offline Activity Segmentation

Offline activities have a greater influence on your online success than most eCommerce businesses realize.

Offline marketing refers to any advertising done via conventional offline media such as television, billboard advertisements, and radio.

Suppose you have customers who are not so “techy”. How do you approach them? 

Here’s an example:

A customized railway ticketing machine was built at Moscow’s Vystavochnaya Metro Station,  as part of the 2014 Winter Olympics Sochi advertising effort. At this ticketing machine passengers could save money on their train ticket by doing 30 squats in return for a free railway ticket. 

This was an effort to promote a healthy lifestyle as well as the Olympics event to commuters.

Powerful Segmentation Strategies

Source: Wired

By doing this segmentation strategy, you can determine what message to relay or how you promote your products in a traditional way, especially to those who spend most of their time offline.

Why Is Marketing Segmentation Important?

Companies that split their markets correctly can achieve considerable benefits. 

According to a Bain & Company survey, 81% of executives believe that segmentation is critical for increasing revenues. Over a 5-year period, Bain discovered that organizations with outstanding market segmentation strategies earned a 10% greater profit than those with less effective segmentation.

Other benefits of marketing segmentation are:

  • More powerful marketing messaging
  • Creating efficient marketing tactics
  • Getting the right customers
  • Finding niche markets
  • Lower acquisition costs and higher response rates

Whether you’re conducting an interview or a survey, the next step in your research might be a little hazy.

Keep the more remarkable brand or marketing in mind while gathering large volumes of market segmentation data. Instead of depending just on one or two techniques to describe your consumer groups, integrate the efforts of many tactics. 

This provides businessmen with a comprehensive view of their target audience.

Marketing segmentation enables businesses to develop and optimize future goods, as well as market to customers in the future.

Privacy Policy

Last updated: June 08, 2022

This Privacy Policy describes Our policies and procedures on the collection, use and disclosure of Your information when You use the Service and tells You about Your privacy rights and how the law protects You.

We use Your Personal data to provide and improve the Service. By using the Service, You agree to the collection and use of information in accordance with this Privacy Policy.

Interpretation and Definitions

Interpretation

The words of which the initial letter is capitalized have meanings defined under the following conditions. The following definitions shall have the same meaning regardless of whether they appear in singular or in plural.

Definitions

For the purposes of this Privacy Policy:

  • Account means a unique account created for You to access our Service or parts of our Service.

  • Company (referred to as either “the Company”, “We”, “Us” or “Our” in this Agreement) refers to Kas Andz Marketing Group, International House, 24 Holborn Viaduct, London EC1A 2BN.

  • Cookies are small files that are placed on Your computer, mobile device or any other device by a website, containing the details of Your browsing history on that website among its many uses.

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Collecting and Using Your Personal Data

Types of Data Collected

Personal Data

While using Our Service, We may ask You to provide Us with certain personally identifiable information that can be used to contact or identify You. Personally identifiable information may include, but is not limited to:

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Usage Data

Usage Data is collected automatically when using the Service.

Usage Data may include information such as Your Device’s Internet Protocol address (e.g. IP address), browser type, browser version, the pages of our Service that You visit, the time and date of Your visit, the time spent on those pages, unique device identifiers and other diagnostic data.

When You access the Service by or through a mobile device, We may collect certain information automatically, including, but not limited to, the type of mobile device You use, Your mobile device unique ID, the IP address of Your mobile device, Your mobile operating system, the type of mobile Internet browser You use, unique device identifiers and other diagnostic data.

We may also collect information that Your browser sends whenever You visit our Service or when You access the Service by or through a mobile device.

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We use Cookies and similar tracking technologies to track the activity on Our Service and store certain information. Tracking technologies used are beacons, tags, and scripts to collect and track information and to improve and analyze Our Service. The technologies We use may include:

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Cookies can be “Persistent” or “Session” Cookies. Persistent Cookies remain on Your personal computer or mobile device when You go offline, while Session Cookies are deleted as soon as You close Your web browser. Learn more about cookies on the Free Privacy Policy website article.

We use both Session and Persistent Cookies for the purposes set out below:

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For more information about the cookies we use and your choices regarding cookies, please visit our Cookies Policy or the Cookies section of our Privacy Policy.

Use of Your Personal Data

The Company may use Personal Data for the following purposes:

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  • For business transfers: We may use Your information to evaluate or conduct a merger, divestiture, restructuring, reorganization, dissolution, or other sale or transfer of some or all of Our assets, whether as a going concern or as part of bankruptcy, liquidation, or similar proceeding, in which Personal Data held by Us about our Service users is among the assets transferred.

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We may share Your personal information in the following situations:

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The Company will retain Your Personal Data only for as long as is necessary for the purposes set out in this Privacy Policy. We will retain and use Your Personal Data to the extent necessary to comply with our legal obligations (for example, if we are required to retain your data to comply with applicable laws), resolve disputes, and enforce our legal agreements and policies.

The Company will also retain Usage Data for internal analysis purposes. Usage Data is generally retained for a shorter period of time, except when this data is used to strengthen the security or to improve the functionality of Our Service, or We are legally obligated to retain this data for longer time periods.

Transfer of Your Personal Data

Your information, including Personal Data, is processed at the Company’s operating offices and in any other places where the parties involved in the processing are located. It means that this information may be transferred to — and maintained on — computers located outside of Your state, province, country or other governmental jurisdiction where the data protection laws may differ than those from Your jurisdiction.

Your consent to this Privacy Policy followed by Your submission of such information represents Your agreement to that transfer.

The Company will take all steps reasonably necessary to ensure that Your data is treated securely and in accordance with this Privacy Policy and no transfer of Your Personal Data will take place to an organization or a country unless there are adequate controls in place including the security of Your data and other personal information.

Disclosure of Your Personal Data

Business Transactions

If the Company is involved in a merger, acquisition or asset sale, Your Personal Data may be transferred. We will provide notice before Your Personal Data is transferred and becomes subject to a different Privacy Policy.

Law enforcement

Under certain circumstances, the Company may be required to disclose Your Personal Data if required to do so by law or in response to valid requests by public authorities (e.g. a court or a government agency).

Other legal requirements

The Company may disclose Your Personal Data in the good faith belief that such action is necessary to:

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Security of Your Personal Data

The security of Your Personal Data is important to Us, but remember that no method of transmission over the Internet, or method of electronic storage is 100% secure. While We strive to use commercially acceptable means to protect Your Personal Data, We cannot guarantee its absolute security.

Children’s Privacy

Our Service does not address anyone under the age of 13. We do not knowingly collect personally identifiable information from anyone under the age of 13. If You are a parent or guardian and You are aware that Your child has provided Us with Personal Data, please contact Us. If We become aware that We have collected Personal Data from anyone under the age of 13 without verification of parental consent, We take steps to remove that information from Our servers.

If We need to rely on consent as a legal basis for processing Your information and Your country requires consent from a parent, We may require Your parent’s consent before We collect and use that information.

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Our Service may contain links to other websites that are not operated by Us. If You click on a third party link, You will be directed to that third party’s site. We strongly advise You to review the Privacy Policy of every site You visit.

We have no control over and assume no responsibility for the content, privacy policies or practices of any third party sites or services.

Changes to this Privacy Policy

We may update Our Privacy Policy from time to time. We will notify You of any changes by posting the new Privacy Policy on this page.

We will let You know via email and/or a prominent notice on Our Service, prior to the change becoming effective and update the “Last updated” date at the top of this Privacy Policy.

You are advised to review this Privacy Policy periodically for any changes. Changes to this Privacy Policy are effective when they are posted on this page.

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