When partaking in any business it’s incredibly important to keep up with the most fruitful strategies for growth. One of these is strategic audience segmentation. Its purpose is to help you present certain products or lines of products to select groups that have a greater interest in them.
These can include media, services, furniture, or any other marketable item. The insights given to us by this method allow for the identification of untapped markets we haven’t previously noticed. Such markets may also represent niche interests that have a lot less competition. The key component is knowing the steps to realize this strategy, we will lay it down below.
1. Review information you have on your audience
It is important to get as much information as possible before properly segmenting your audience. When you gather enough information filter out the most important bits of it. These would be aspects such as attitudes, aspirations, needs, behaviors, or other traits of the people in the group. Such traits determine their purchasing preferences better than some other often used ones such as age groups. This information will come in handy later so properly conducting this step is very important.
2. Group potential customers
Now that you have all the necessary information it’s time to create groups. These groups can be formed into clusters. Audience clusters refer to segments of customers and users that share a lot of traits with each other. To form a cluster separate the information you’ve gathered in step one. First, put everybody who has overlapping traits in one group. This will shrink the amount of information you have to go through considerably and form your first cluster.
Repeat this step, forming a new cluster for each new set of traits, until you run out of intel that has the same traits. The next part includes checking out the remaining information and deciding which of the fully mutual clusters it can be added to. It will usually be the one with the most similarity in traits. Keep in mind that this process may end up forming new clusters, if there aren’t any already formed ones that share enough similarities or the set of traits proves unique in its required marketing approach.
It’s good to utilize software that assists in creating these segments for a faster grouping experience. Try out Audiense for some unique audience segmentation opportunities and easier brainstorming sessions. At this point, it is assumed you’ve formed a good base in this audience segmentation endeavor and are ready for the next step.
3. Revise the potency of the segments that have been formed
There are multiple questions one has to ask themselves when it comes to discerning the most important segments to target as well as their ease of accommodation. We start with size, where we ask whether the segment is large enough to yield a profit when engaged with. Then we go onto access, this question concerns the ease of reaching this person.
It is quickly followed up by responsiveness which speculates on the cluster’s willingness to engage with our marketing and it ends with the level of need. The level of need discerns which of our clusters are most in need, this can impact the speed at which they become customers. When you revise these factors you should get a very good picture of which clusters to prioritize and how.
4. Targeting one or more segments
You can finally employ your intel and segmentation into practice. Everything has been sorted out and now it’s time to figure out how to approach the specific segments you’ve formed. This can further be enhanced by consistently engaging with the existent and newly forming segments. Make sure to follow their trends as well as their changing attitudes and behavior.