Customer segmentation is an effective method for dividing your target audience into groups. This way, you can market to them individually and sell your products and services more effectively.
However, if you don’t implement customer segmentation the right way, you can risk wasting even more time and money on your marketing campaigns. Creating successful, high-performance customer segments is based on diligence and research.
The good news is that it’s still a very straightforward process when you get the hang of it. Below, you’ll learn about four proven ways to use customer segmentation to increase your company’s revenue.
1. Create Specific Segments
The entire purpose of customer segmentation is to market to individual prospects who fit within your ideal customer profile. This can be difficult when you’re reaching out to thousands, and even millions of people. However, the more relevant your marketing message is, the more effective it’ll be.
To begin personalizing your marketing messages, you’ll need to segment your audience into highly-specific groups. For example, you should place people who have shown interest in different products in two different segments.
Placing them in the same segment may not work optimally, considering that both people have different motivations and desires to purchase different products.
2. Create Personalized Messages
When you begin to segment your audience into groups, then you can create personalized messages to pique their interest further. For example, let’s say a customer has recently visited your website and signed up for your email list.
What would be the best course of action to reach out to them? Would you send them a spam welcome email that doesn’t contain their first or last name in just a few seconds?
Or, would you send them a personalized email with their first name and an announcement that the product they’ve been looking at is now on sale? Which would be the more effective option.
Clearly, the latter option is best. This is how sending personalized messages work.
3. Conduct A/B Tests
Admittedly, nearly all first-time marketing projects don’t succeed. It’s through constant A/B, or split, testing that marketing projects soon hit their mark. It’s important to remember to give your campaigns enough time to work.
When you have the data to prove that they aren’t successful according to your standards, then you’ll need to create a separate campaign that’s similar to the first one. The only thing you’ll change is what you believe the culprit is for your campaign’s failure; this is called the independent variable.
For example, if you believe that your subject line is to blame for your email message’s failure, you can create the exact same message with a different subject line to see if your hypothesis is true.
A/B testing takes some time to bear fruit. Therefore, be patient and diligent to produce the results you want.
4. Divide According to Demographics
If you’re searching for ways to segment your customer base, start with demographics. Below is some demographic information you’ll need to acquire from your target audience:
- Gender — It may be obvious, but you should divide your audience by gender if your products are aimed as such.
- Language — How do your customers speak? This is important in creating copy to reach your audience.
- Location — Where do particular customers live? This is also very important information.
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