Segmentation can help companies boost revenue, optimise user experience, assist with marketing strategy development and create impactful marketing messages.
According to Pareto 80/20 Principle, 80% of a company’s revenue comes from 20% of its business. Leveraging audience segmentation can help businesses focus more on that 20% of customers and direct marketing efforts toward those consumers that are most likely to engage with their products or services.
There are various types of segmentation: firmographic, technographic, behavioural and psychographic. When implemented appropriately, segmentation can help businesses deliver purposeful and effective communication to the right audience. To create an effective segmentation strategy, marketers must first identify their Ideal Customer Profile (ICP).
Brands should also create persona profiles to create content, format and messages that their target audience will most likely consume. Further, align sales and marketing teams with the company’s segmentation strategy to target prospects effectively.
[3 minute read]