The 5th element of segmented marketing:
Before modern marketing and advertising technologies existed, the “shotgun” (try to hit as much as you can method) used to be all marketers acknowledged. Billboards, radio ads, TV commercials, and magazine ads were all relied upon to produce positive emotional results with no real market segmentation to target ideal & specific customers. Now, all kinds of platforms exist for digital marketers to filter out the masses and target exactly who they want.
And guess what, it’s not just the digital marketer's who are benefitting from it, but individuals are more likely to appreciate and engage with brands that take the time to personalize their ads with dedicated offers created for them.
Basically, market segmentation classifies a broad target population into smaller groups or subsets with similar needs, interests, preferences, and characteristics. In addition to commonalities among individuals in a segment, marketers must also ensure that the people respond in a similar way to pitched marketing activities so that they can capitalize accordingly.
There are 4 main market segmentations:
Geographic - Target customers based on the predefined geographic boundary.
Demographic - Dividing the market through variables of age, gender, education level, income, etc.
Psychographic - Focus on the intrinsic traits of the customer such as personalities, values, interests, motivators, lifestyle, etc.
Behavioral - Break down the way customers make their decision and buying making processes.
All of the described segmentations are amazing tools and highly beneficial to increase exposure, call for action and can be used by any business that wishes to reduce it’s marketing efforts and increase the lead conversion rate.
But, what if there is a 5th way, that it's already available to us through a cutting edge technology to create the most segmented marketing campaigns ever created? A type of segmentation that doesn't put its faith in arbitrary clusters or groups and suits itself to the level of the individual customer? Now that's a little bit more interesting! Isn’t it?
True, we can have similar beliefs, values, income, and there is a likelihood that we are even in the same geographical location. Does that mean we will respond the same way or even act the same way? Not necessarily.
Every person has a whole world within him that is completely unique from the rest of his environment, and the majority of differences lie in their individual expression of language.
Yes exactly. Language. By using the same language (patterns, keywords, motive directions), two individuals are able to foster a positive or close relationship based on the similarity & common measures between them. You may know this as “rapport”.
Using AI, NLP & ML allows us to learn about the customer’s personality and therefore, help companies in creating a personal profile for each unique customer, learn what is most suitable for them and launch truly segmented digital campaigns based on their words and actions.
The 5th of type of segmentation, using language patterns & expressions, is going to change the way companies interact with and understand their customers. It will also change the way customer service & UX is going to appear and the variety of digital campaigns between one customer to another.
Group segmentation and cluster analysis will soon no longer suffice while a tailor-made & automated campaign created for each user through his preferred channel will flourish. So, why is marketing segmentation important? Two words, one purpose: increase ROI. Through personalized marketing campaigns, companies reduce unnecessary campaign expenses to uninterested consumers, especially if those campaigns are automated. This increased campaign efficiency focuses more of its resources on ROI & customer experience.
In conclusion, marketing segmentation hand in hand with cutting-edge technology is going to change the way businesses communicate with customers, the way we purchase products or services and will redefine what is true segmentation.
So, is your company ready to take a step toward the next generation of digital marketing?
For more information, visit us at www.candelatech.co