How Customer Segmentation Strategies Propel Business Growth

While many different marketing strategies lead to sales and other conversions, there's nothing quite like a targeted campaign. Experts find that 77% of all returns on marketing investments come from strategies tailored to different sections of a target audience.

If your small business or medium-sized enterprise wants to make a profit, customer segmentation - the art of breaking your target market down into multiple chunks - can make this possible. Read on to learn some benefits of customer segmentation strategies and how you can reach people the right way.

A Versatile Strategy

In the most basic terms, "customer segmentation" happens when you tailor your brand message to different customer groups.

For example, let's say that you run a real estate business. You sell properties to individual families who want to buy homes, people looking to make an investment and become landlords, and commercial properties for business owners. Each of these three customer types is a group to which you can tailor your marketing efforts.

You would create three different ads that show off each of these possibilities. You'd then work with Taradel to conduct a target audience analysis and figure out who's in each group. This would let you tailor the ads people see to their needs so they can go to landing pages relevant to them.

But beyond the basics, there are multiple different types of segmentation that you can implement:

• Demographic segmentation, which divides your market into groups based on age/gender/occupation/income
• Geographic segmentation that lets you target locally to different service areas
• Psychographic segmentation, which divides your clientele based on their values and attitudes
• Behavioral segmentation that divides your customers based on their spending habits and purchase-related actions

Choosing the right one to fit your needs is the first step toward sharing your brand message with the right people.

A Personalized Marketing Plan

When you put your customers into categories, you can create marketing plans tailored to each customer base. This means showing people ads that actually pertain to their needs and values. You can generate more interest in people who see your products and services as relevant.

Because of this, 89% of businesses say that personalizing their marketing efforts leads to a significant ROI increase!

A real estate company that shows residential buyers ads for commercial property won't get clicks. The ad won't be relevant, so the viewer will scroll past it without a second thought.

But if you show that same buyer an ad about buying a new home through your company, they might click on it and check it out! You can direct them to a landing page that specifically asks them to take action for seeking out residential properties for their families to drive the point home.

This isn't just a great way to get more clicks on Google ads and social media posts. It's also awesome because you improve your customer relationships. They're more likely to feel valued when you tailor your efforts to their specific interests, so you'll establish positive feelings that lead to brand loyalty.

Fine-Tuned Marketing Materials

When you chunk your target audience into sections, you'll understand them better. You'll have a clearer picture of who you're targeting and can create a marketing plan that spreads more specific and relevant messages.

This also lets you create ads that appeal to each section of your target market. It goes beyond messaging.

Say that one section of your target audience is high-income men in their 40s looking for commercial property. You can include images of professional-looking buildings on a simple black or white background. This will help them see that your property can help their business position itself as a high-end industry leader.

But those looking for cozy family homes will likely be put off by the sanitized vibe of this commercial property ad. You can make another advertisement showing a picture of a happy family. Warm colors and approachable language will engage those looking for a comfortable, happy house.

 A Stronger Brand Identity

Doing a customer data analysis and showing consumers relevant ads makes you memorable. Your business becomes more visible and helps you stand out in a crowded market.

When you break your audience down into parts, you can easily align your marketing efforts with all your business goals. It's possible to chunk your audience down into "new leads" and "repeat customers." This lets you draw new people in and get more clients while still nurturing the old ones who already know what you're about.

Your business goals become clearer and you'll have the chance to measure more key performance indicators. This means understanding how you can build your brand up and make a bigger name for yourself.

Your brand identity also improves because you find out what's vital to clients. This gets them interested in what you're offering and builds interest. Getting people more aware of your image means that you can get everyone talking about you and make headway in your industry.

Customer Segmentation and Marketing Mediums

Part of meeting your business goals is adapting your ad campaign to various marketing mediums.

Individual consumers may want to see ads on social media. In fact, different age groups within your B2C customer segments might be more active on different platforms. A TikTok ad may reach younger consumers while a Facebook one is ideal for middle-aged clients.

If you sell medical devices to older adults as well as hospitals, you may want to send physical mail to senior prospects. They're less likely to be active online regularly, and a flyer or pamphlet might reach them quicker. Every Door Direct Mail can help with this, as can sending personalized materials to specific leads.

Start Your Target Audience Analysis ASAP

Now that you know the benefits of customer segmentation when executing effective marketing strategies, it's time to begin reaching your target audience the right way. Taradel's experts are excited to partner with you and assist you with all steps of your upcoming marketing campaign.

Our expert audience profiling strategies and customer data analysis tools are a surefire way to propel your business toward success. Create an individual marketing plan today to begin reaching your target market.