Can Marketing Segmentation Really Help Grow Your Business?

Can Marketing Segmentation Really Help Grow Your Business?

There are a large number of successful businesses that continue to thrive largely based on the fact that they learn about their customers. These businesses put in time, effort and resources to understand their customers and their needs. One of the most commonly used techniques to identify the right product to market to the right customer is through marketing segmentation. To simplify this, it is a process that helps businesses to understand the demands of specific customer groups based on the data that the business has about them. The business uses this data to develop products and tools to better understand the marketing needs and to better segment their audience.

There are usually 4 common types of segmentation:


Location-based segmentation divides your customer base into different segments based on the cities, areas of a specific city or state. This helps the business identify the common factors among that segmented group of customers including climate, language and living style. This greatly helps the marketing needs of the business as they are able to curate the marketing campaigns for that particular area based on the data on hand.


This form of segmentation allows the businesses to divide the customer base based on age, gender, life-cycle, and size of the family. Age is a basic demographic factor as it helps the business understand the evolving needs of the customers according to their age. Gender-based segmentation helps the business cater to the male-specific or female specific demands of their audience.


Behavioral segmentation helps the business divide the customer base according to their purchase patterns. The customers can be classified as people who buy on occasions like Christmas and new years. There are also customers who buy for benefits including health-related or self-improvement benefits.  The customer likes, dislikes and the areas of their interest also help identify these marketing segments. The marketing campaigns could be based on the gathered data and curated accordingly.


Psychographic segmentation helps the business understand the customer’s needs based on their habits, hobbies and values. The easiest way to obtain this data is through surveys from your existing customers. Since the world is used to technology and almost everything is worked through the internet, you can look for a web development outsourcing company for your business.

Now let us discuss why marketing segmentation is important and how can it help grow your business:


Segmentation helps provide a direction for the businesses to create marketing campaigns and develop models that can be used to facilitate the audience segment that the business is targeting. Once the audience segments have been created, it becomes way easier for the business to choose the direction through which they can approach and target their desired audience.


Providing a value proposition to its customers is the primary focus of any business. By creating a number of small marketing segments, the business can understand the dynamics of their target audience on a micro level and curate their strategies accordingly. Segmentation not only helps the business understand the needs of smaller audience segments but also helps them understand the needs on a macro level. Gaining valuable insights into the needs of the target audience enables the business to make well-informed decisions regarding their products and marketing strategies.


As the segmentation helps the business understand the demands of their consumers, it gives them a competitive edge over other business as they can provide better services and products according to the market needs. This helps the business gain ground over their competition. On the whole, marketing segmentation is essential in modern day world and helps businesses grow.

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