Market segmentation is well known marketing term used to define a process of breaking up large unclassified market into smaller targeted and identifiable segments. The subsets can be identified by geographical location, demographic factors, similar needs and several other targeted subdivisions. Same logic works behind the email marketing segmentation strategy, you narrow down random records to create better identifiable groups of contacts/subscribers. Let’s explore the potential of applying an effective segmentation strategy, and how some major demographic and geographic segments can affect the results. Before we go on, make sure that you have managed to collect all kind of information, basis on which you would form the following segments
How and to whom you want to market your products is one the key decisions organizations and marketers have to make. Effectively operating with available demographic data ensures better conversions and sales. Here are some demographic factors that you can use to create more effective subsets.
You can adapt more efficient marketing strategy by subdividing your available email marketing data into more manageable age groups. Before you kick start your product marketing campaign, determine which age segment your targeted contacts fall in? For example, if you setup anti-aging product marketing campaign for a market full of teenaged contacts, results may take a nose dive. But if you setup the same campaign for right age group consumers, it would certainly increase engagement level, and eventually the conversion rates.
One of the most important demographic segments that no one should overlook is the gender, especially when you are considering to market gender specific products like cosmetics, fashion, clothing and footwear etc. A new lipstick stock would certainly excite the female contacts to purchase. Keeping your campaign relevant for the target segment would always help generating great results.
Another important subset of the large market can be the profession the targeted segment belongs to, if you are running a job search or career advice service, you can understand how significantly this segmentation can improve the conversion, if you send job match emails to relevant professionals (Subscribers) only.
The better you analyze the purchase patterns of your subscribers, the more proficient you will become in creating market segments. Other than the major subsets discussed above, you can outspread your demographic segments to income, marital status and lifecycle stage. All depends on what industry you are in, what your specific needs are and what are you targeting? Travel planners, and jewelry brands would need to have their market segmented based on the basis of marital status.
Geographic Subsets & Regional Preferences
Knowing subscribers’ physical location always offers an edge to divide your market into more classified and identifiable subgroups. One of the benefits of creating regionally divided markets is that you can setup your email marketing campaign in accordance with regional preference. Let’s take a look what these segments would look like and how it practically helps generating good results.
We all know from our experience that some of the products are region specific and have less or no value for the other markets. It can be summed up by analyzing marketing strategies of some big multinational sports brands that adapt different strategy to target regional segment obsessed with Football as spot and different approach for the segment with Cricket fervor.
If you have subdivided your market into the groups and regions, you would be having a great chance to take advantage of mega events happening around the globe. A good example is taking advantage of some mega events like FIFA or ICC world cup, an opportunity for related brands as well as for the travel companies.
Some of the products are seasonal and their sales are affected by the climate change. Some of the examples can be winter attire, swimsuits etc. Some travel planners can also take advantage of geographically distributed segments to attract target market during high times, like some parts of Europe turn into the travel magnet during summers that makes a right time to explore the potential of the target market.
It is always convenient to narrow your market down to target the potential segment of your market. The more appropriately you narrow down large market into smaller targeted segments; the better would be the chances to develop and market right products/services for right audiences.