Key Benefits of Market Segmentation

Key Benefits of Market Segmentation

The customer is the king, and you simply cannot deny the fact. Marketing is one of the ways to reach out to your kings and satisfy their needs and wants in the best possible way. With the ever-evolving world, customers are also evolving, desiring new and innovative products and services to make their lives easy.

One of the most effective and efficient ways to grow as a business is to know your target customer segment and find the most prominent ways to reach out to your customer segment and ultimately increase your conversions and revenue.

In this article, we will learn about a buyer persona, customer segmentation, and the benefits of market segmentation to take your business to reach heights.

So, let’s begin.

What is Buyer Persona?

A buyer persona is undoubtedly a semi-fictional representation of the individual you want to buy your products and services. Understanding the consumer’s needs and finding ways to communicate with them easily becomes effortless by creating detailed buyer personas.

How Do You Create Buyer Personas?

Creating buyer personas means understanding your target audience based on their traits and preferences. Some of the significant elements that you can take into consideration while creating efficient and result-oriented buyer personas include.

• Demographics (age, location, gender, etc.)
• Assessing the existing customers to identify the trends
• Insights about career information
• Values
• Goals

After creating effective buyer personas, you have to segment the personas to implement competitive marketing strategies.

What is Persona Segmentation?

Persona Segmentation refers to a process of identifying and categorizing similar personas together. The freedom of selecting the way to segment personas lies entirely with you, depending on your type of business, offerings, business objectives, and market parity.

According to Survey Monkey, preliminary market research is essential for market segmentation since it helps them figure out their ideal clients’ needs and how to solve for them

Here are the key types of market segmentation.

1- Product Engagement

Categorizing buyer personas with product engagement is based on the frequency of the customers using it or how well they are engaging with your products, services, or brand.

Segmenting customers based on product engagement is a type of customer base segmentation because here, they are grouped according to how they choose to engage with the brand, service, or products.

For instance, you are offering deep house cleaning services. In this case, you’ll have to categorize and tailor-made offers, promos, and messages based on how long the customer has been using your services. For the first-time customer or to attract a new lead, you may seek the help of a newsletter or special introductory or first-time discounts.

On the other hand, you might introduce offers under a loyalty program for your regular customers. This way, you are engaging with your existing customers, making them your brand advocates, and creating a way for new customers.

2- Product Feature Use

Do you have a product with multiple features, and different customers use it for their distinct features? If yes, you can segment buyer persona based on how they use your product features.

For instance, if you have a product “food delivering app”, you might have people who distinctively use the app. Some might like to order takeaways because they are too lazy or introverted to go out for dining. At the same time, some might use it to enjoy the additional discounted coupon codes for their favorite restaurants.

You can create a content marketing plan that considers both kinds of users and keep their interest intact. Once the content plan is ready, you can market the same through native advertising methods through advertising campaigns.

3- Online Channels

Effectively communicating with your target audience is indeed not easy and to achieve maximum effectiveness, opting for multi-channel communication is crucial. By opting the multi-channel communication, you can segment the personas based on the channel they prefer to interact with your brand. Customer segmentation based on preferred communication channels allows you to identify the media you should focus on more and effectively reach your customers.

For instance, target customers with white-collar jobs on LinkedIn and the youth on various social media platforms.

4- User Interaction

Sometimes, customers interact with your brand in different ways. So you can segment their personas based on how they choose to interact with the brand, products, or services.

For instance, if you are a food delivery service provider, you can curate different messages for your customers, restaurants you have partnered with, or delivery personnel. It is crucial to take how your internal and external environment interacts with your business as it helps in framing competitive strategies for future growth and expansion.

What Are The Undeniable Benefits of Persona and Market Segmentation?

You are now familiar with how you can segment your buyer personas. It is time to learn the indisputable benefits of market segmentation for the effective and efficient implementation of competitive marketing strategies.

Here are the benefits of persona segmentation in marketing.

1- Effectively Communicate With Your Existing and Potential Consumers

With the help of persona segmentation, you now have a clearer picture of your customer’s pain points, attitude toward your brand and products, and personal values. Having extensive knowledge about all of this gives you a competitive edge in learning about their actual needs and finding impactful ways to reach out to them. Persona segmentation allows you to answer questions like whether you are catering to a particular persona segment. If yes, which channel will you find efficient in communicating with them to market your brand and products effectively?

2- Identification of Channels to be Used While Reaching Out To Your Customers

Segmenting your buyer’s personas based on their media consumption offers you a valuable idea about which channel of communication you should focus on. It also helps develop a sense of care in the eyes of your customers about the brand as you are concerned about finding effective ways to connect and stay connected with them and create content that they engage most with. In addition to selecting the communication channels, you must also focus on the ways of native advertising you think will fetch the best results. Banner ads or display ads can prove helpful.

3- Identify The Stage of Your Potential or Existing Customers in the Buyers Funnel

If you can identify the current position of your customers in the buyer funnel, then you have won half the game as it helps you segment your customers based on their levels. It allows you to execute uniform strategies for each level segment effortlessly. Also, if you have identified their stage in the buyer funnel, you can evaluate their level of interest in your products, brand, or services and implement strategies accordingly to convert them into actual sales.

4- Nurturing Your Customers at Different Stages of the Buyer Funnel

Persona segmentation helps you direct exemplary efforts to slide the customers down the funnel and convert them into sales. It helps understand the needs at different stages of the buyer funnel and evaluate ways to satiate those needs. The primary focus should be on solving any queries that your buyers/customers might have at any given point in the buyer funnel.

5- Identifying the Segments You Should Be Primarily Focusing On

Persona Segmentation allows you to categorize the personas based on their intensity of enh=gaement and level of interest in the brand, services, or products. With this, you can effortlessly and strategically employ the time and budget of your marketing team. For instance, you can allocate minimal time to the high-volume but less engaged buyer persona segment and vice-versa. 

Also read: How to rank for near me searches 

Conclusion

With the help of persona segmentation, you can efficiently focus on framing competitive marketing strategies and executing them to get excellent results in enhanced brand awareness, brand loyalty, improved brand visibility, unintended brand recall, and ultimately amplified return on investments in for of actual conversions. Also, with systematic customer segmentation, you can select the most effective native advertising strategies to attain an upper competitive edge.