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Tom Bates
Managing Director
STRAT7 Audiences
Segmentation is the bedrock of effective growth strategy
Want to sell more products? Turn market shifts into a competitive advantage? Get customers coming back time and time again, and spending more as they do? You need to define who you’re targeting, why you’re targeting them, and what they want. A transformational segmentation doesn’t just bring clarity on who to target, but why you are targeting them, so different teams can focus on target segments and refine what to target each of them with.
If you don’t understand your audience, there’s no way you’ll be able to engage them effectively. How large is it? What kinds of people are in it? How can you best engage them? Not everyone in your audience will be the same, and each segment will need different products, marketing and messaging to be engaged successfully.
In times of change, companies that deeply know their customers can adapt quickly, turning market shifts into growth opportunities while competitors struggle. By understanding how consumers think, feel, and behave, you can react to changes in the market quicker than your competitors
In this guide, we’ll show you, step-by-step, how you can define your audience, break it down into segments, target those more effectively, create messaging, branding and offerings that are personalised to their needs, and use your segmentation to monitor and drive results.
But first of all, let’s go over the basics.
What is segmentation?
Segmentation means breaking your commercially-addressable audience into smaller groups (typically 5-8, but this can vary, depending on your needs), each of which is united by shared characteristics, like attitudes, demographics, needs and behaviours.
Defining your organisation’s commercially addressable market is the first, fundamental step to a transformational segmentation. This covers everyone who could possibly consider buying or using a product or service of yours, even if they don’t do so currently. Another term for this is “non-rejector” – basically everyone who won’t not buy from you, if you’ll excuse the double-negative.
Instead of treating everyone the same, segmentation allows for marketing, products and messaging to be tailored to meet these different audience needs.
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