Segmentation: how and why?

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When you’re looking to improve the effectiveness of your  marketing strategies , segmentation should be one of your top priorities. To do this, in this article you’ll learn about the  4 most common types of segmentation  and understand the  benefits  of using them.

What is segmentation?
Market segmentation is increasingly an essential part of any marketing strategy and can be the  differentiating factor  in companies in a  highly competitive environment , such as in the  e-commerce area .

When faced with a large number of online competitors, the best way to differentiate your business is through  effective communication . Segmentation gives you the opportunity to pinpoint the  message that will drive your customers to make a purchase.

The 4 types of market segmentation are:
Demographic segmentation (Who?)
This type of segmentation is likely to be the first thing that comes to mind when people hear the term 'market segmentation'. It is the  most straightforward way of defining consumer groups , and it remains effective over time. Demographic segmentation looks at identifying traits such as:

Age
Gender
Ethnicity
Remuneration
Level of education
Religion
Job or role in a company
For example, demographic segmentation can highlight potential customers based on their  income , so that your budget isn't wasted communicating with people who can't afford your product financially.

Psychographic segmentation (Why?)
This type of segmentation focuses on  customer personalities  and interests. Here we can look at our consumers and define them by:

Personality traits
Hobbies
Life goals
Values
Beliefs
Lifestyles
When compared to demographic segmentation, this on page seo service can be  more difficult to pinpoint . Good research is vital, and when done well, psychographic segmentation allows you to carry out more effective marketing tactics, which in turn make consumers feel like you are speaking on a much more personal level.

Geographic targeting (Where?)
By comparison, geographic segmentation is one of the easiest to identify, as it groups your customers based on their  physical locations . This can be defined in a number of ways:




Country
Region
City
Postal Code
For example, you can group consumers within a certain location within a radio station – a great option if you’re planning an  event  that aims to engage with local audiences. Taking your customers’ locations into account will help you get more accurate feedback when promoting your business.

Behavioral Segmentation (How?)
Behavioral segmentation is one of the  most useful segmentations for any e-commerce business . Compared to psychographic segmentation, it requires very little data to be truly effective - but much of this can be obtained by performing an  analysis of your own website . Here we group consumers based on: