Marketing segmentation is more than just a buzzword in the modern marketing world. It has become an essential pillar for any business wishing to optimize its customer activation strategy.
By segmenting its clientele, a company can deliver more relevant messages, tailored to the needs and expectations of each customer segment. This method of segmentation not only improves the effectiveness of marketing campaigns but also strengthens customer relationships.
In this article, we will explore marketing segmentation examples to inspire you and help you better target your customers.
Demographic segmentation is one of the most commonly used methods of marketing segmentation. It involves dividing the market into distinct groups based on demographic data such as gender, age, income, or family status. For instance, a company that sells beauty products may have specific items for men and women, or a toy brand might target specific age groups. This method of segmentation is particularly useful because demographic characteristics are often associated with specific consumer needs and desires. By employing this segmentation strategy, companies can create more targeted and relevant marketing campaigns for each customer segment.
The foundation of marketing segmentation is simply the use of the segmentation criterion based on gender. It is predicated on the understanding that men and women may have different needs, desires, and purchasing behaviors in certain product or service categories. For example, beauty products, clothing, or fragrances are often marketed differently according to gender. However, it is crucial for companies to approach this segmentation with sensitivity and to avoid falling into reductive stereotypes.
For instance, our client Kaporal uses gender-based marketing segmentation to address its female clientele on one side and its male clientele on the other.
In certain industries, segmenting by age is necessary if you offer different products or services depending on the age group. Whether it's children, teenagers, young adults, middle-aged adults, or seniors, each age group has distinct needs, interests, and purchasing behaviors.
Take, for example, the segmentation of our client Playbac Presse, which offers a varied range of youth news dailies and weeklies for different age groups.
Widely used in the luxury sector, the banking industry, or even the automotive sector, this method of segmentation allows for categorizing individuals based on their income and therefore their financial capacity and spending habits. For example, a luxury brand may primarily target high-income individuals, while a low-cost brand might focus on low-income consumers.
This segmentation strategy is crucial for companies that offer a wide range of products or services at varying prices, as it enables them to deliver the right message to the right group, thus optimizing the effectiveness of their marketing campaigns.
Family status is a demographic segmentation criterion that divides your clientele into several groups based on their family composition:
in a relationship
with or without children
For instance, a travel agency could offer holiday packages for young couples, family vacations for those with children, or sightseeing tours for seniors. Similarly, a real estate company might target large families with multi-bedroom houses, while singles might be more interested in studios or compact apartments.
Geographic segmentation is a fundamental approach to marketing segmentation that involves dividing the market based on geographical criteria such as regions, countries, cities, or even neighborhoods. This method of segmentation allows companies to tailor their offerings and marketing strategies to specific geographic areas, taking into account local peculiarities, cultural preferences, climate, and economy. Geographic segmentation is essential for businesses operating on a global or national scale, as it enables them to effectively target each market segment according to the specific needs and expectations of each region or country. By using this marketing strategy, companies can optimize their resources, maximize their reach, and increase their relevance in geographically diverse markets.
This segmentation enables targeting people based on their geographic location, whether by country, region, city, or even neighborhood. In the retail sector, for example, it can be used to invite customers to an event in their nearest shop. Here, the example of our client Damart, who is announcing the forthcoming reopening of one of their shops. Only customers who are geographically close will be targeted.
This segmentation allows for communication with customers based on weather conditions.
Take the example of our client Renmans, a chain of butcheries in Belgium, which will incorporate weather elements for the upcoming weekend into its communications to inspire the desire for barbecues and to purchase their grilling products.
Psychographic segmentation delves beyond demographic criteria to explore the intangible characteristics of consumers. It focuses on internal aspects such as personality, attitudes, values, interests, lifestyles, and opinions. For example, a company that sells sports equipment might target individuals with an active lifestyle, or an eco-friendly brand may appeal to those who value sustainability and the environment.
Psychographic segmentation offers a deeper understanding of consumer purchasing motivations, enabling businesses to create marketing messages that resonate more strongly.
This method of segmentation is crucial for reaching the customer segment on a more personal and emotional level.
Lifestyle is a very important psychographic criterion for segmenting your market. This criterion takes into account the lifestyle of your customers, in other words their sporting, family or daily activities for example.
This criterion considers immutable factors such as the cultural and educational factors of your clientele. Customers with the same values typically have commonalities regarding their needs and desires.
This criterion takes into account the passions and interests of your clientele. It goes without saying that if you manage to decode your customers' preferences and divide them into homogeneous groups, you hit the jackpot in marketing.
Behavioral segmentation is based on the purchasing and interaction behavior of the consumer with a brand or product. It considers variables such as the benefits sought by the consumer, the rate of product usage, brand loyalty, the level of purchase readiness, and reactions to promotions. For example, a company can segment its customers into "loyal customers," "occasional buyers," or "cart abandoners."
This market segmentation allows businesses to tailor their offers and communications to the specific needs and behaviors of each customer segment. By understanding and responding to the buying habits and preferences of consumers, businesses can improve customer satisfaction and increase brand loyalty.
It is one of the most significant market segments in e-commerce because it complements demographic and psychographic segmentation with data-driven conclusions and enhances a company's marketing strategy.
To segment according to behavior, one must first understand the customer journey or the life cycle of a customer.
Segmentation by new customers is the first step when segmenting in the customer journey. These are customers who have just discovered a brand or product and have made their first purchase or interaction. These customers are crucial because they represent an opportunity for growth and expansion for the company. However, their relationship with the brand is still fragile and nascent.
It is therefore imperative for companies to understand the motivations, expectations, and needs of this customer segment to convert them into regular or loyal customers. Strategies to engage these new customers can include welcome offers, introductory guides to products or services, or surveys to collect their initial impressions.
Repeat or regular customers are those who have made at least two separate purchases over time and who visit your website regularly. Unlike occasional customers who may buy sporadically, regular customers make purchases with some consistency, although they are not necessarily attached to a brand in the same way as loyal customers. These customers have identified a value or convenience in the product or service offered, prompting them to return regularly.
For businesses, this customer segment represents a stable source of revenue. It is essential to understand their purchasing habits, preferences, and expectations to continue to meet their needs. Strategies to further engage these customers can include periodic offers, discounts based on purchase frequency, or reward programs to encourage more frequent purchases.
Loyal customers return regularly to make purchases, showing a marked preference for a specific brand or product. Their loyalty is measured not just in terms of purchase frequency but also by their commitment to the brand, whether they are likely to recommend it to friends or leave positive reviews online.
For businesses, this customer segment is invaluable. They generally cost less to retain than to acquire new customers and tend to spend more over the long term. By understanding and responding to the needs and expectations of loyal customers, businesses can strengthen this precious relationship. This can include loyalty programs, exclusive offers, or personalized experiences. Ultimately, by valuing and nurturing loyal customers, businesses can not only increase their profitability but also build a solid foundation for future growth.
Champions, often referred to as VIP customers, represent a special category within behavioral segmentation. These individuals are not just regular or loyal customers; they are brand ambassadors, often responsible for significant recommendations and positive word-of-mouth. Their value is not limited to their own purchases but extends to their influence over the broader network of potential consumers.
VIP customers deserve special attention from businesses. They should receive exclusive benefits, such as early access to new products, special offers, exclusive events, or premium customer service. These privileges are not just rewards for their loyalty but strategic investments to strengthen their relationship with the brand and encourage their advocacy.
In 2023, the cart abandonment rate reached 79.53% (source: SaleCycle). This means that more than two-thirds of visitors to your website do not complete their purchases.
Cart abandoners add products to their cart but leave the site before finalizing the purchase. Several reasons can explain this abandonment: unexpected shipping costs, a complicated payment process, or simple distraction.
For businesses, understanding this customer segment is crucial. By segmenting and analyzing the behavior of cart abandoners, brands can identify friction points in the purchasing process and implement strategies to overcome them. This can include targeted remarketing campaigns, email reminders for abandoned carts, or special offers to encourage customers to complete their purchase.
By focusing on the motivations and obstacles of cart abandoners, businesses can not only recover lost sales but also optimize their shopping experience to reduce the abandonment rate in the future.
Inactive customers are former loyal customers that you have lost. Customer reactivation is an interesting phenomenon because it is a particular segment due to their familiarity with your product.
The challenge is to reactivate the relationship and re-establish dialogue by sending them aggressive promotions or exclusivities (free delivery or surprise gift) as our client Linvosges does below.
Learn more about reactivating inactive customers
At the heart of behavioral segmentation are occasional buyers, a distinct group that does not purchase regularly but nevertheless represents a significant opportunity for businesses. Unlike loyal or regular customers, occasional buyers may be motivated by one-time offers, seasonal promotions, or specific needs that arise sporadically. Their purchasing behavior is often impulsive, triggered by an attractive offer or an immediate need.
By tailoring marketing strategies to meet the motivations and triggers of occasional buyers, brands can turn these sporadic interactions into more enduring relationships. This could involve targeted remarketing campaigns, special offers to encourage them to return, or surveys to better understand their needs and preferences. Ultimately, although their purchase frequency may be lower, occasional buyers offer a potential for growth and expansion for businesses that pay attention to their specific behaviors and needs.
Deal seekers refer to shoppers who are sensitive to promotions. These customers are constantly on the lookout for the best deals, whether online, through coupon apps, or in stores.
For businesses, understanding and effectively targeting deal seekers can represent a significant opportunity, especially for moving inventory or stimulating sales during slow periods.
However, it is crucial to approach this segmentation strategically. While excessive promotions may attract deal seekers in the short term, they can also devalue the brand or reduce the perception of its value over the long term. Businesses must therefore strike a balance, offering attractive deals for deal seekers while preserving the integrity and value of their brand.
Segmentation by acquisition source is a specific approach to marketing segmentation that focuses on how customers have discovered or come into contact with a brand or product.
This segmentation method allows businesses to divide their customer segment based on acquisition channels such as search engines, social media, paid advertising campaigns, referrals, direct emails, and many other sources. For instance, a customer acquired through a Facebook advertising campaign might have different behaviors and expectations than one acquired through an organic search on Google. By understanding and segmenting according to the acquisition source, businesses can further personalize their communications, offers, and experiences for each group, thus optimizing the return on investment of their marketing efforts.
This segmentation strategy is essential for businesses looking to understand the effectiveness of their various acquisition channels and to adjust their multichannel strategies accordingly.
Segmentation by device or browser used is an essential dimension of marketing segmentation in the digital age. It involves dividing the customer segment based on the devices (such as smartphones, tablets, desktop computers) or browsers (such as Chrome, Firefox, Safari) they use to access a website or application.
This segmentation method should not be overlooked because the user experience can vary significantly from one device or browser to another. For example, a website may display differently on an iPhone compared to an Android device, or may have different functionalities on Chrome compared to Internet Explorer. By segmenting based on the device or browser, businesses can optimize the experience for each group, ensuring smooth navigation and better customer satisfaction.
This segmentation strategy is particularly relevant for online businesses, as it allows them to adjust their content and design to meet the specific needs of each user segment.
Behavioral segmentation has undergone a remarkable evolution with the advent of Artificial Intelligence (AI).
AI, with its advanced algorithms and machine learning capabilities, enables businesses to analyze massive volumes of behavioral data in real time. This analysis, once laborious and time-consuming, can now be performed with unmatched precision and speed.
Thanks to AI, companies can identify subtle patterns and trends in customer behavior, going far beyond traditional segmentations. This makes it possible to create ultra-personalized segments, offering consumers tailor-made shopping experiences.
Moreover, AI can predict future customer behaviors based on their past actions, enabling brands to anticipate customer needs even before they are expressed.
Marketing segmentation is a powerful tool for businesses. It enables an effective understanding and addressing of each customer segment. By integrating these segmentations into your segmentation strategy, you can create more impactful campaigns and strengthen your customer relationships. We hope these 20 examples of marketing segmentation have inspired you and will give you ideas!
To implement it, choose a strategy that fits your situation, define the criteria to use to create market segments, then activate your customers and/or prospects.