Market segmentation is crucial for better, personalized marketing.

Let’s Get Smart About Market Segmentation

No one wants to be a dummy, and that’s why we’re talking about market segmentation today.

Smart marketers use segmentation to divide their entire audience base into smaller defined groups. Each group has important commonalities, such as interests or needs. This segmentation is what allows marketers to create personalized campaigns. These campaigns deliver more relevant information to prospects. Prospects respond better to these kinds of campaigns.

There’s a lot of information out there cluttering up our lives. Every day, we all get messaging thrown at us. In on our email, in our mailbox. On Facebook, Instagram, Twitter, TV. Most of it doesn’t stick. Little of it even gets noticed. The thing that makes us stop and pay attention isn’t just a loud message, it’s a smart message.

Most smart messaging comes from marketers who pay attention to segmentation.

Maybe not everyone is as aware of what causes them to respond to messaging, but we know personalization works. The numbers tell us so.

Marketers can’t afford to not talk about segmentation. Not when 86% of consumers say their purchases are influenced by personalization (see infographic below). And the only way to give your target audiences a personalized experience is to segment.

We all know this isn’t optional, but there are still too many of us struggling to get it right.

In December, our friends at Kahuna posted this infographic, The Struggle For Smart Segmentation. It lines out why market segmentation is a requirement for consumers, how it pays off for marketers, and what’s holding us back.

If you’re looking for the short version, here are some points that made me sit up a little straighter:

    More than half of consumers (53%) say it’s important retailers recognize them across all devices.
    Nearly half (48%) say they buy more when marketers personalize the entire experience.
    Personalization delivers 5-8 times the ROI on marketing spend.
    Less than 10% of retailers say they’re highly effective at segmentation and personalization.
    Many say they don’t have the technology they need to get better at personalization.

Here’s the long version:

This infographic shows why marketers need to pay more attention to market segmentation.

Did you know that recognizing the need to segment is one of the signs you need marketing automation in your life? Check out the other signs in this blog.