Successful marketing starts with understanding your customers. Market segmentation is the process of dividing your overall market into specific groups based on shared characteristics. Market segments must be measurable, accessible, substantial and actionable in order to deserve your attention.
By using effective market segmentation criteria, you can tailor your marketing efforts, products, and services to the unique needs of each segment, leading to higher conversion rates and better ROI.
Bear in mind that not all market segmentation criteria are relevant and useful for every company.
For example: Car manufacturers would gain little by distinguishing between vegetarians and non-vegetarians. However, for a meat-producing firm, this may be one of the most important market segmentation criteria.
Let’s explore the essential criteria you can use to segment your market:
The most effective market segmentation strategies often combine multiple criteria. For example, a clothing company might target young, fashion-conscious women in urban areas with a specific income level. By layering criteria, you create highly defined customer segments.
Below, you can find all the criteria including examples.
[table id=SegmentationVariablesforMarketSegmentation /]
Once you’ve segmented your market, use these insights to:
Example:
A sports apparel company might use segmentation criteria to create targeted campaigns:
Market segmentation is a foundational marketing strategy. Choose the criteria most relevant to your business and target specific groups with tailored marketing efforts for greater success. By understanding your customers on a deeper level, you’ll unlock the potential for more effective marketing, increased customer loyalty, and a stronger competitive edge.
Have inquiries about our products or services? Feel free to reach out to us anytime! Our team is dedicated to providing you with comprehensive information and support at every stage of your journey.