Types of User Segmentation's To Benefit Your Business

Marketing helps you understand your user, focus your product on your user needs and take the product to market. Here is a post about what your business could go through when segmenting your customers and how you can benefit.

Marketing Segmentation

Only few companies are big enough to supply the needs of an entire market. Even the large one must break down the total demand into segments and choose those that the company is best equipped to handle.

Marketing segmentation is marketing strategy that involves dividing a broad target market into subsets of consumers who have common needs, wants, demand, or characteristics.

Entrepreneurs tend to have visions of global domination, and in that model you want to segment the whole world. Because eventually the whole world is going to buy your product. It’s just a question of who’s going to buy it first.

Market Segmentation Practices


1. Behavioural

Behavioural segmentation considers a few things such as the knowledge of your product. Users attitude towards your product. How and how often they use your product or how they respond to your product. Their loyalty to the product.

You can also think about creating a segment based on what your customers will benefit from the product. Behavioural segmentation is a great place to start when you think about segmenting your market.

Messaging for each of these segments is going to be different for each of it. Also it’s going to be affected by the different benefits that these customers seek. We also need to think about the places, online or offline, where our customers may be.

2. Psychographic

This segmentation is achieved by studying activities, interests, and the opinions of your customers.

You’re thinking about the lifestyle of your customer.

  • How do they spend their free time?
  • What are they influenced by?
  • What image are they trying to project?
  • What are the needs and wants of people in this common lifestyle group?

For example , usually people who buy a luxury car can not only afford it, thus defining their economics status, but it also shows a preference to spend money on more luxury lifestyle products.

So we can deduce that they may travel to high class destinations, wear specific brands, or visit certain establishments.

3. Demographic

The demographic segmentation is, you guessed it, based on your customers demographics characteristics. Things like age, gender, occupation, education level, income level and much more.

If you’re coming from a B2B point of view this could be the size of the company, the number of employees, or even the location of the company.

4. Geographic

This segmentation is based on geographic areas such as a country, regions, different cities, or postal codes.

Now, you can do a geo-cluster approach which combines Demographics and Geographic segmentation's. You’ll look at demographic information within a certain area to create a more specific profile.

5. Cultural

With this you’ll classify the markets according to the cultural origin. This can be incredibly powerful given that understanding a culture can give you so much insight to certain groups of customers and their behaviours.

When you use cultural segmentation, you’ll be able to communicate well with a given culture in the most effective way. Cultures can be large, they can be nationwide or they can be small and reflect a particular region with a small start up culture.

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