Tag Archives: audience

Market Segmentation and its strategies – key Criteria

What is Market Segmentation? 

The basic definition of market segmentation is when your target audience is divided into smaller categories that share similar characteristics. 

Here are a few reasons why this can benefit your brand:

  • Creating hyper-targeted ads;
  • Building stronger relationships with customers;
  • Differentiating your brand from competitors;
  • Identifying marketing tactics that have more impact.

With market segmentation, you will likely find that certain sections of your audience are more motivated to purchase during certain seasons. Perhaps people living in specific local areas are more interested in a subsection of your products, and so on. 

Key Criteria

You can and should define your customer segmentation, but the key textbook examples are: 

  • Geographic: country/city, urban/rural etc.
  • Demographic: age, religion, gender, income, socio-economic type, education, family size/status
  • Psychographic: lifestyle, interests, hobbies, opinions, influencers
  • Behavioral: buyer journey stage, brand loyalty traits, price sensitivity, purchasing style, usage rate
  • Media: social media/TV/newspapers/search engine preferences
  • Benefit: customer service, quality, and other specific expectations.

Geographic Segmentation

This is one of the simplest target market segmentation methods. You’ll divide your customers based on their geographic borders. You can segment them according to:

  • City / State / Country / Zipcode
  • Radius around a location
  • Climate
  • Rural or urban

When it comes to geographic market segmentation examples, consider a brand that sells a variety of clothing styles. They’ll want to segment their audience according to the climate to target people who need warmer clothing versus cooler clothing according to the season in their area.

Brands that have a brick-and-mortar store but also sell their goods online may also want to provide special incentives for customers who live near their physical location.

Demographic Segmentation

Target market segmentation based on demographics can be one of the most effective ways to target specific customers. The reason for this is because you can uncover the demographics of your audience easily.
You can also discover demographic information by using Facebook Audience Insight, Instagram Audience Insight, and Google Analytics. These easy-to-use tools will give you information on the following:

  • Age / Sex;
  • Location;
  • Ethnicity;
  • Income / Employment status;
  • Times they’re most often online;
  • Household, and so on.

Segmenting a target audience based on demographics can open up new possibilities for your marketing strategies. For instance, new products that are coming to market that are only relevant to women will save marketing dollars over time. Brands that are also selling luxury goods will find more success by marketing to people who have higher incomes.

Your audience may be primarily teenagers or young adults, but you’ll also want to keep in mind that their parents may be interested in products when it comes to purchasing gifts for them. Marketing towards their parents can help you fill in the gaps when it comes to dryer seasons.

Psychographic Segmentation

Psychographic segmentation is all about the target audience’s minds. By knowing what they care about on a day-to-day basis, you’ll be able to create content that they engage with consistently and share with family and friends. This includes learning their:

  • Personalities;
  • Hobbies / Interests;
  • Values / Goals / Beliefs;
  • Lifestyles. 

These can be much harder to identify compared to demographics and location. However, once you have a good grasp of your audience’s psychographics, you’ll be able to tailor your marketing strategies in a more personal way.

Beyond selling a product or service, using psychographic information in your marketing can help build relationships and rapport with customers. You’ll be able to build a strong following of people who trust the brand!

If you don’t know where to start on uncovering this data, try including more questions in your emails, social media content, and more. People are happy to answer quick questions about themselves when it comes to their aspirations and dreams. You can also ask them about their opinions of current events or “this vs that” questions.

B2B Segmentation

B2B companies need to use different tactics and strategies when it comes to segmenting audiences. Although it may seem more difficult compared to B2C, you’ll be able to differentiate companies just as effectively with the following tactics.


You can think of firmographics as demographics for B2C market segmentation. You’ll take into account the size of the company, the culture, industry, location, and more. This is one of the most popular ways to segment companies because it’s fairly easy to acquire this information.

It’s also straightforward to describe different company segments to different departments. For instance, the sales department will easily understand the prioritization of companies with 200 employees or more.


Customer tiering is based on how well you think a company can match your business goals. For instance, companies that will be able to match your sales goals each month may be at the top of your tier. By segmenting customers based on their customer lifetime value, you’ll be able to use your marketing dollars more effectively.

This doesn’t mean that you’ll ignore companies that have a lower customer lifetime value. Instead, you can focus on products and services they need rather than trying to draw them in with offers that they historically don’t value.


This is one of the most straightforward ways to segment B2B customers. For instance, if you’re a company that offers remote HR solutions, you’ll be able to segment your customers based on how often they need your services. This also ties into company firmographics, as the size of a company, as well as their budget, can help determine the solutions they’re looking for. 

You may have older companies that still prefer placing orders over the phone. Conversely, some companies need to be able to easily order online at any time. 

The main downside of this type of segmentation is that it’s harder to communicate to other departments. This can be tackled with comprehensive documentation for each company based on their history with your company. 

10 reasons why you may need a digital channel strategy?

Where do you start if you want to develop a digital marketing strategy? It’s still a common challenge since many businesses know how vital digital and mobile channels are today for acquiring and retaining customers. Yet they don’t have an integrated plan to support digital transformation and company growth and engage their audiences effectively online.

So, if you don’t yet have a strategy, or maybe you want to review which business issues are important to include within a strategic review, we’ve set out the 10 most common problems, that in our experience arise if you don’t have a strategy.

You’re directionless

Companies without a digital strategy (and many that do) don’t have a clear strategic goal for what they want to achieve online in terms of gaining new customers or building deeper relationships with existing ones. And if you don’t have goals with SMART digital marketing objectives you likely don’t put enough resources to reach the goals and you don’t evaluate through analytics whether you’re achieving those goals.

You won’t know your online audience or market share

Customer demand for online services may be underestimated if you haven’t researched this. Perhaps, more importantly, you won’t understand your online marketplace. The dynamics will be different from traditional channels with different types of customer profiles and behavior, competitors, propositions, and options for marketing communications.

We’ve got marketing tools to support your research and planning. Our popular competitor analysis module in our RACE Practical Digital Strategy Learning Path is packed with templates and matrixes to review the relative performance of your key competitors. Plus, find out more about your audience’s intent with our Google keyword planning tools.

All our marketing training will support you and your team to build a winning marketing strategy to reach, convert and retain more customers and accelerate your ROI from digital marketing. Sound good? Take your next steps to a winning strategy by getting started today.

Existing and start-up competitors will gain market share

If you’re not devoting enough resources to digital, or you’re using an ad-hoc approach with no clearly defined strategies, then your competitors will eat your digital lunch!

As a member of Smart Insights, we’ll keep you updated on the latest trends and innovations in your sector. So you can stay ahead and not fall behind.

You don’t have a powerful online value proposition

A clearly defined digital value proposition tailored to your different target customer personas will help you differentiate your online service encouraging existing and new customers to engage initially and stay loyal. Developing an omnichannel marketing strategy is key to this for many organizations since the content is what engages your audiences through different channels like search, social, email marketing, and on your blog.

You don’t know your online customers well enough

It’s often said that digital is the “most measurable medium ever”. But Google Analytics and similar will only tell you volumes of visits, not the sentiment of visitors, what they think. You need to use other forms of website user feedback tools to identify your weak points and then address them.

You’re not integrated 

It’s all too common for digital marketing activities to be completed in silos whether that’s a specialist digital marketer, sitting in IT, or a separate digital agency. It’s easier that way to package ‘digital’ into a convenient chunk. But of course, it’s less effective. Everyone agrees that digital media work best when integrated with traditional media and response channels.

That’s why we recommend developing an integrated digital marketing strategy, so your digital marketing works hard for you! With your integrated plan in place, digital will become part of your marketing activity and part of business as usual. 

Digital doesn’t have enough people/budget given its importance

Insufficient resources will be devoted to both planning and executing e-marketing. There is likely to be a lack of specific specialist e-marketing skills which will make it difficult to respond to competitive threats effectively.

As a member of Smart Insights, you’ll have access to strategy and planning tools including performance and digital maturity benchmarking, and regular marketing data reports, so you can keep track of your position in a competitive landscape.

What is Digital Marketing and How Important is it?

What is digital marketing?

Digital marketing includes all marketing endeavors that use the internet. It’s the promotion of brands to connect with potential customers using the internet. This includes social media marketing, E-mail marketing, and even blogging are all good examples of digital marketing. It helps to introduce people to your company and convert them to buy your products.

Why it is so important to promote your business?

Digital marketing aids you reach a wider audience and target the prospects who are most likely to buy your product or service. It’s cost-effective than the traditional advertising method and enables you to measure success daily.

Here are some important advantages of digital marketing.

Target the people most likely to purchase your product or service

If you publish an advertisement on TV or magazine, you have limited control over who sees the ad. Of course, you can measure certain demographics. But it’s still difficult to identify some statistics. On the other hand, Digital marketing enables you to identify and target a highly specific audience, and send that audience high-converting and personalized marketing messages. You have the advantages in social media marketing that target certain audiences based on age, gender, location, interests, networks. Ultimately, digital marketing allows you to improve your marketing strategy over time to ensure you’re reaching prospects most likely to buy. If you want to sell multiple products or services to different people, this is especially helpful.

More cost-effective than traditional marketing methods

Digital marketing helps you to track or monitor campaigns daily and minimize the amount of money you’re spending. You have entire control over where you wish to spend your money. Mostly choose to spend money on design software to create high-converting social media content. It allows you to ensure you’re never wasting money on channels that don’t perform well. If your business is small with a limited budget, you might try investing in social media, blogging, or SEO. These three strategies can give you a high Return of Investment(ROI) even with minimal spending. 

Digital marketing lets you outrank bigger players in your industry

If you work for a small business, it’s likely challenging for you to contend with the major brands in your industry, many of which have millions of bucks to invest in television commercials or national campaigns. Luckily, there are lots of opportunities to outrank the big players through decisive digital marketing initiatives.

For example, you might identify some long-tail keywords that correlate to your product or service, and make high-quality content to assist you rank on search engines for those keywords. Search engines don’t consider which brand is the biggest — alternately, search engines will prioritize content that resonates completely with the target audience.

Additionally, social media allows you to reach new audiences through influencer marketing. I don’t personally follow any big brands on social media, but I do follow influencers who will hardly showcase products or services they prefer — if you work for a small-to-medium-sized company, this could be a good street to consider.

Digital marketing is measurable

Digital marketing can proffer you a whole, start-to-finish view of all the metrics that might value to your company — comprising impressions, shares, views, clicks, and time on page. This is one of the hugest benefits of digital marketing. While traditional advertising can be useful for particular goals, its biggest constraint is measurability.

Unlike most offline marketing efforts, digital marketing allows marketers to see precise results in real-time. If you’ve ever put a commercial in a newspaper, you’ll know how difficult it is to estimate how many people flipped to that page and gave attention to your advertisement. There’s no surefire way to know if that ad was accountable for any sales at all.

On the other hand, with digital marketing, you can estimate the ROI of pretty much any aspect of your marketing efforts.

Here are some examples:

Website Traffic

With digital marketing, you can see the definite number of people who have seen your website’s homepage in real-time by using digital analytics software, available in marketing platforms. You can also view how many pages they visited, what device they were using, and where they came from, among other digital analytics data.

This info helps you to prioritize which marketing channels to spend more or less time on, based on the number of people those channels are pushing to your website. For example, if only 10% of your traffic is coming from organic search, you know that you seemingly need to spend some time on SEO to improve that percentage.

With offline marketing, it’s very difficult to tell how people are communicating with your brand before they have an interaction with a seller or make a purchase. With digital marketing, you can identify trends and patterns in people’s responses before they’ve reached the final stage in their buyer’s journey, meaning you can do more informed decisions about how to pull them to your website right at the top of the marketing funnel.

Content Performance and Lead Generation

Imagine you’ve created a product brochure and posted it through people’s letterboxes — that advertisement is a form of content, albeit offline. The problem is that you have no idea how many people uncovered your advertisement or how many people threw it straight into the garbage.

Now imagine you had that brochure on your website instead. You can measure accurately how many people viewed the page where it’s hosted, and you can collect the contact details of those who download it by using forms. Not only can you measure how many people are interested in your content, but you’re also forming qualified leads when people download it.

Attribution Modeling

A powerful digital marketing strategy combined with the right tools and technologies allows you to track all of your sales back to a customer’s first digital touchpoint with your trade. We call this attribution modeling, and it enables you to identify trends in the way people investigate and purchase your product, helping you to make more informed decisions about what parts of your marketing strategy deserve more consideration, and what parts of your sales circle need refining.

Connecting the dots between marketing and sales is hugely important. Companies with effective sales and marketing alignment achieve a 20% annual growth rate, compared to a 4% decay in revenue for companies with poor alignment. If you can enhance your customer’s journey through the buying cycle by employing digital technologies, then it’s likely to reflect emphatically on your business’s baseline.