Audience Segmentation
Audience segmentation is the process of dividing a database of potential customers into groups with similar needs and behaviours. These groups make it possible to create more personalised communications. A message that persuades a small business is unlikely to work for an enterprise audience. Segmentation improves the targeting of ads and email campaigns, increases conversion rates, and reduces the cost per lead.
What Criteria Are Used to Segment an Audience?
- Socio-demographic: age, gender, income, region.
- Behavioural: purchase frequency, average order value, activity across channels.
- By benefit sought: what a person values in a product, such as price, speed, or service.
- By stage: not yet aware of the product, evaluating options, using it, or no longer active.
For example, a SaaS company divides its database into four segments: small businesses without a CRM, sales teams evaluating systems, existing customers going through onboarding, and dormant accounts. A separate offer, content, and messaging sequence is prepared for each segment.