As competition for keywords and placements gets more and more challenging, it’s up to marketers to find better ways to cut through the clutter. One of those ways is through market segmentation. Targeting and connecting to the right audience can increase click-through-rates and even conversion rates when done properly.
What is Market Segmentation?
If you’re not yet aware, market segmentation is the process of dividing a market of potential customers into groups, or segments, based on different characteristics.
How Segmentation Improves Campaign Performance
There are many ways market segmentation improves campaign performance. Here are the three we think are most important:
- Refines media spend
Reaching certain audiences can just be plain costly. Campaign segmentation can make them more efficient. Don’t get me wrong, sometimes targeting more market segments can increase media costs. But hopefully, if you’re doing it right, you’ll increase returns too. Better understanding your market segments and aligning your strategies to suit them gives you more opportunity to create efficiencies within your campaigns. Segment-specific landing pages can increase relevancy scores on platforms like Google, increasing your visibility to searchers. It goes on and on. Further, understanding which platforms and creative perform best with which segments can lead the way for more efficient media spends across the board and stronger ROI for your organization.
- Creates stronger communication with each audience
This one is a bit more challenging to quantify, but it’s just as important. When you practice strategic market segmentation, you’re able to customize your messaging. Whether value or pain based, your messaging can directly address the needs of your target segment. Not only can you do this with your advertising, but with the other campaign materials as well. Customized landing pages and blog or downloadable content can help support the buyer’s journey. The better you’re able to communicate with them, the more likely they’ll be to take the next step.
- Increases conversion rate
After all, this is what we’re all after, right? Segmenting campaigns (well) has a great effect on conversion rate optimization. Here’s an example of how. You launch a campaign with three key market segments. You’ve reached a prospect in one of your audience segments with a targeted ad, and a message catered to them. They click through to a landing page designed specifically to address their needs. They have access to the information relevant to them to help inform their decision. They decide to convert. Honing in on the right audience at the right time with the right information goes a long way toward helping them take your desired action, instead of juggling other research and taking more time to learn if it’s the right fit for them.
With this in mind, how can you better optimize your campaigns via segmentation? Start by creating your buyer personas. Analyze your media budgets and keyword strategy to mine for opportunities to optimize and refine based on your target audiences. Create content that addresses the individual needs of your key prospects. Develop landing pages on your site catered to them. Make market segmentation an integral part of your marketing approach.