Market segmentation is crucial for any business launching a marketing campaign. In a nutshell, marketing segmentation means to split prospective customers into groups or ‘segments’ with different needs, to better tailor your marketing efforts to different audiences.
For businesses that are eager to launch their latest marketing plans and strategies, market segmentation is a tempting prospect. Many businesses seek out a specialist marketing partner to help them with this, and this is certainly a service we offer here at Recall Marketing.
However, before you tailor your budget to fit this, it's important to make sure you’re doing it right, and getting the most out of market segmentation in 2024. Read more about this marketing tactic now with our helpful blog post.
A critical yet often overlooked step
Despite it being so important, market segmentation and customer profiling can sometimes be sidelined by businesses. This oversight can lead to decisions that are driven more by personal preference than by a strategic understanding of the target audience, and this is detrimental to the overall success of a campaign.
Though it can be time-consuming, it’s essential that thorough research is carried out to best align your marketing efforts with the needs and preferences of your audience. This makes it more likely that somebody will take the step to enquire about your products or services, and become a customer.
The BBC is a good example of a business that sees the value of market segmentation. They have invested up to £50 million over the last five years into customer research, aiming to tailor their content better for certain viewer preferences. However, you don’t need to be a mega corporation to see success with this, and more businesses, particularly B2B businesses, are recognising this value.
Why your business needs market segmentation
So why does your business need market segmentation for better marketing success?
Market segmentation lets you gain a deeper understanding of your consumer base, allowing for more targeted and relevant marketing messages. Putting marketing campaigns out there without prior segmentation can lead to ineffective messaging and poor performance. Take the time to research your audience and split them into the right segments and this will help you reap the full benefits of your campaigns!
Key Attributes for Effective Segmentation
So, how do you approach market segmentation to ensure the best chance of success?Successful segmentation involves categorising your audience based on several attributes:
Demographic: Distinguishing factors such as age, gender, income level, education, and more.
Firmographic: A focus on businesses, covering things like industry, size and revenue.
Behavioural: Looks at people’s purchasing patterns and interactions with your business.
Psychographic: Things like lifestyle, interests, and attitudes.
For smaller businesses, it may be wise to start with demographic and firmographic information. This can provide valuable insights to help guide your marketing, without extensive resources.
Resources and Tips for Starting Your Segmentation Journey
There are many free tools and resources available to help facilitate your market research and segmentation efforts. Here are some of our top picks:
Office of National Statistics: Offers detailed and informative business demographics.
LinkedIn: Ideal for B2B research to gain insights into company roles, business growth, and more.
Acorn User Guide: Helps identify consumer groups and purchasing habits.
Social media platforms: Enable primary research on target audience behaviours and preferences.
Industry reports: Look for sector-specific reports for deeper insights.
Website data: Use Google Analytics to understand how users interact with your site.
CRM systems: Track customer interactions and build detailed customer profiles.
If you're seeking guidance on how to get started with market segmentation, get in touch with Recall Marketing today. We have experience helping many businesses, including B2B businesses, to create effective customer segments that help them achieve their marketing goals. Let us help you create marketing that matters in 2024!
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