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What Kinds of Segmentation Methods Are There?



What Kinds of Segmentation Methods Are There?

When it comes to marketing, it is all about understanding the customer, which means understanding their wants and needs. That means understanding their behavior, and in order to understand their behavior, you need to understand the concept of behavioral segmentation and descriptive segmentation. That is because an understanding of the two segmentation methods will give you a greater understanding and appreciation of your customers’ spending habits, which can help you to tailor your business strategy to maximize its appeal to them.

This not only helps you to attract customers, but it also helps you to keep them as well. It’s not a difficult concept to wrap your head around and once you gain a better understanding of segmentation methods, you will gain a better understanding of your customers, which is great for them and for you.

What is Segmentation In Terms of Marketing?

Segmentation basically means that you divide your customers into groups based on their habits and their behavior. There are two types of segmentation, descriptive and behavioral, so let’s take a closer look at each.

Descriptive Segmentation

Descriptive segmentation is all about the characteristics of your customers, their location, their demographic groups, their age, gender, and so on. In fact, you can further subdivide descriptive segmentation into two smaller categories, demographic segmentation, and geographic segmentation.

Demographic Segmentation – This is all about segmenting people according to statistics and characteristics like age, gender, job title, and so on.

Geographic Segmentation – This is when people are segmented by location. This could be as broad as segmenting people by their country, or as narrow as doing so by their zip code.

By itself, descriptive segmentation can be useful for a lot of different businesses because it provides a lot of valuable data about their potential customer base. However, it is even more useful when used in conjunction with behavioral segmentation.

Behavioral Segmentation

This kind of segmentation is all about monitoring and examining the spending and purchasing habits of your customers. Behavioral segmentation is important for businesses because it comes down to the following three important factors:

Acquisition – This is all about winning and gaining new customers.

Engagement – This is about how often your customers use your products.

Retention – This is all about customer loyalty. It helps you find out how long they use your product or brand.

These factors mean that behavioral segmentation is about monitoring the patterns of your customers’ behavior. For example, it helps you to know if they are regular users of your product or if they only use it on special occasions. That can help you to tailor your approach to better serve your customers and give them what they want.

Why Is Behavioral Segmentation Important?

The importance of descriptive segmentation is self-evident; it can help you know the type of person who is using your product and where they are using it. That kind of information is very valuable when it comes to creating marketing campaigns. Behavioral segmentation is important because it helps you to learn about how your customers use your product. That can aid your business in predicting future trends.

It can also help you to map out a buyer journey that helps you to find out what a customer does at each stage of their purchasing your product. You can also create behavioral marketing campaigns based on your customers’ purchasing habits. Behavioral segmentation also allows you to use the past behavior of your customers to find out what they will need in the future, which gives you the chance to create more targeted campaigns.

Segmentation Is an Important Marketing Tool

Segmentation is all about analyzing the descriptions and behavior of your customers so that you can sell to them more effectively. It is an extremely effective marketing tool that allows you to retain your current customers as well as get brand new customers. So be sure to use both descriptive and behavioral segmentation in your business strategies in order to keep your loyal customers satisfied and to get new customers to become loyal customers.