Divide and Conquer: What Are The Benefits Of Audience Segmentation?

Posted on: 21 March 2024

Intro

Hello aspiring audience segmenter…
Ever caught yourself wondering why some ads seem to speak directly to your soul, while others just… don’t? It’s like some brands have a secret key to your heart (or at least your wallet), right? Well, spoiler alert: that “secret key” is actually not so secret. It’s called audience segmentation, and it’s the boss man on the front lines of today’s marketing world.

Imagine you’re throwing a party. You wouldn’t serve the same snacks to your vegan friend as you would to your mate who’s a die hard carnivore, right? Audience segmentation is kind of like that, but for marketing. It’s all about knowing your audience so well that you can tailor your message just for them, making each customer feel like you’re speaking their language, literally and figuratively.

Now, why should you care? Well, because getting this right could mean the difference between your message being a hit or disappearing into the abyss of forgotten ads. Plus, who doesn’t love feeling understood? My hope is that by the end of this post, you’ll realise how you’re missing out by just sending off one-size-fits-all messages and why we should never neglect segmentation.

Enhanced Personalisation and Customer Experience

So, why does segmentation matter so much? Well, in a world where we’re literally bombarded left, right & centre with thousands of messages a day, personalised marketing isn’t just good to have — it’s necessary. It cuts through the noise and speaks directly to you, in a language and tone that you understand and appreciate. This isn’t about just slapping your name on an email; it’s about creating experiences that resonate with your individual preferences, needs, and even your quirks & behaviours.

Let’s break it down with an example. Imagine you’re a coffee enthusiast (I’m actually writing this in my favourite coffee shop right now – shoutout to Lykke). Anyway – so a coffee brand segments their audience and identifies you in the “Loves Trying Exotic Blends” category. Next thing you know, you’re receiving emails about their new Ethiopian blend, complete with brewing tips and a discount for your first purchase. Feels good, right? That’s personalised marketing at its finest – making you feel seen and understood.

But it goes beyond just feeling good. Enhanced personalisation leads to an improved customer experience, where every touchpoint with the brand feels like it was designed with you in mind. People love fitting in, and when you fit them perfectly into your glove, it doesn’t just make customers happy; it turns them into loyal advocates of the brand. And in the digital age, where a single review or social media post can influence hundreds, that kind of loyalty is gold.

So, how can brands achieve this level of personalisation? Firstly, doing a deep dive into audience data, understanding not just who their customers are, but what they care about. Go beyond demographics and tap into behaviours, preferences, and even emotions. And yes, it might sound like a lot of work, but the payoff is huge: a connection with your audience that’s genuine, meaningful, and, most importantly, effective.
The psychology behind this is that it taps into people’s need for understanding and validation. When you make people feel seen by catering specifically to them, it communicates that they’re important and worth understanding – key word… worth. Everyone’s ego has a desire to keep, inflate and present their self worth, so when you appeal to that, it grabs their attention.
If you’d like to read more about the ego, I enjoyed this article by Gregg Henriques.
A little side note – if you’ve read any of our last blogposts, you’ll know I’m a huge proponent of the platform Klaviyo. They have a great audience segmentation function which comes in really handy.

In essence, when we talk about enhanced personalisation and customer experience, we’re talking about creating a world where marketing feels less like a shout into the void and more like a conversation between friends. It’s a world where brands don’t just sell—they connect, understand, and make their customers feel like the VIPs they are. And who wouldn’t want to be part of that world? These are the true benefits of audience segmentation.

Engagement and Conversion Rates

When brands take the time to segment their audience and tailor their messaging accordingly, they’re not just shooting arrows in the dark. They’re laser-guiding those messages to hit the bullseye of customer interest and engagement. And when customers feel that your content speaks directly to them, they’re far more likely to interact with it, share it, and ultimately, convert.

But don’t just take my word for it. The numbers speak for themselves. Brands that employ targeted, segmented campaigns see as much as a 760% increase in revenue. Yes, you read that right. It’s like turning your marketing strategy into a magnet that attracts clicks, shares, and sales like bees to honey.

Here’s the kicker: increased engagement doesn’t just boost immediate sales. It builds a relationship. When customers engage with content that resonates, they’re more likely to remember your brand, return to your website, and recommend you to their friends. It’s the marketing gift that keeps on giving.

As we pull back the curtain on our exploration of audience segmentation, it’s clear that this isn’t just a marketing fad or a buzzword to throw around in meetings. It’s the backbone of modern marketing strategies that seek to connect with individuals on a level that’s more personal, more engaging, and ultimately, more effective than ever before.