Audience segmentation for virtual stores: how to do it and benefits

Audience segmentation is the process of separating consumers into affinity groups, considering behavioral, geographic, psychographic, or demographic characteristics that they have in common. O The objective is to make communication more personalized and assertive, with the public that the company intends to reach.


Nowadays, it is very common to hear the term audience targeting associated with marketing, sales and customer success campaigns. The reason for this lies in the benefits that the practice presents as:

  • Increase in conversion rates;
  • Expansion of return on investment;
  • Reduced customer acquisition cost and more.

If these results are on the list of strategic goals for your business, read on to know, in detail, what audience segmentation is and how to carry it out in your business. 

What is audience segmentation? 

Audience segmentation is the process of separate consumers into affinity groupsConsidering behavioral characteristics, geographic, psychographic or demographic, which they have in common. O objective is to make communication more Custom and assertive, with the public that the company intends to reach.

By doing this organization, the company comes to better understand the characteristics of your customers and can use this information to create more targeted campaigns to them.

The same company may have to deal with more than one group of customers, in these cases, marketing campaigns, sales and customer success can also be created to meet the expectations of each segment.  

Why is audience segmentation important? 7 benefits

But, after all, what is the impact of audience segmentation for the company? Why is it important to create consumer groups? 

The truth is that audience segmentation generates a list of benefits for organizations that consider it in their strategies. Check out what they are.

1) Greater targeting of campaigns 

2) Customer loyalty

3) Optimization of the sales process 

4) Customer advancement in the purchase journey

5) Increase in conversion rates

6) Expansion of return on investment 

7) Reduction in customer acquisition cost

1) Greater targeting of campaigns 

With segmentation, you can better target campaigns to the company's ideal audience and personas. 

2) Customer loyalty

It strategy also contributes to the  Customer Loyalty, after all, consumers who bought the goods are more likely to be satisfied with the products and solve your needs. 

3) Optimization of the sales process 

Increases the sales productivity, after all, the leads that reach the purchase stage really have the pains that the product or service proposes to solve, therefore, they are more interested in the solution.

4) Customer advancement in the purchase journey

It contributes to the customer's advancement in the purchase journey, because when you know what the audience's demands are, it's easier to create follow up with content aligned with these needs. This arouses more interest throughout the relationship with potential customers.

5) Increase in conversion rates

By reaching consumers with the greatest purchasing potential and with what really matters to them, the company accelerates the buying decision and increases the conversion rates.

6) Expansion of return on investment 

Increasing the conversion rate, consequently, increases the ROI of marketing actions.

7) Reduction in customer acquisition cost 

The targeting of campaigns, mainly paid ads, for the company's ideal audience, usually causes the CAC to be reduced, after all, it is easier and less time-consuming to convince someone to make the purchase.

What types of audience segmentation?

Consumers can be grouped based on the consideration of different criteria, so the audience segmentation can be:

  • demographic
  • Geographic
  • Behavioral
  • psychographic

Understand each of them below. 

Demographic segmentation

This market separation model considers socioeconomic issues, such as:

  • gender;
  • age;
  • education level;
  • family income;
  • occupation etc. 

Geo-targeting

Geographic segmentation separates consumers by location according to country, region, state and city. 

It can also separate localities such as urban or rural areas. 

behavioral segmentation

When it comes to defining a company's customer profile, the concepts of demographic and geographic segmentation are already more widespread in companies. However, to create the business persona, and increase the chances of attracting ideal consumers, it is necessary to go further. 

In this sense, considering behavioral and psychographic segmentation (which we will talk about later) is mandatory.

As its name suggests, behavioral segmentation considers the behavior of customers, which involves:

  • shopping habits;
  • consumption pattern; 
  • number of interactions with the brand;
  • preferred channels;
  • interests.

psychographic segmentation

Psychographic segmentation is related to the thoughts, ideologies and ideas of potential customers. This can translate into elements such as:

  • Lifestyle;
  • values;
  • personality.  

How to do audience segmentation? 

Discover the step-by-step how to do audience segmentation:

  1. Know the types of audience segmentation
  2. Use the business database
  3. Apply internal surveys
  4. Organize the characteristics of your company's ideal customer
  5. Create a marketing plan 

1. Know the types of audience segmentation

The first step to taking advantage of all the advantages listed above is to understand that there is more than one type of audience segmentation and use them wisely.

2. Use the business database

Before setting up the ideal customer profile, the suggestion is that you look at current buyer base.

Identify what features demographic, geographic, behavioral and psychographic that the company's best customers present. Also try to find answers about:

  • how the product is used;
  • which products are most purchased;
  • whether there is a periodicity in the purchase of certain items, etc. 

This is a good first step towards targeting the brand.

3. Apply internal surveys

Still seeking to understand the customer profile of the business, apply surveys with your customers to understand questions like:

  • what led these consumers to choose your company;
  • what they miss;
  • what they are satisfied with;
  • how they consume the product;
  • what is the frequency of purchase;
  • what to evaluate to choose the product for a given need.

Also ask about their values ​​and consider your lifestyle

4. Organize the characteristics of the company's ideal customer

As we presented above, there are different types of segmentation and all of them should be considered when building your online store persona. 

That is, you will need to define what the demographic, geographic, behavioral and psychographic characteristics of the company's ideal customer are. 

With this, you will have a complete persona, to serve as a basis for creating advertising campaigns. marketing and sales

Learn how to create a persona and how important it is to your business.

5. Create a marketing plan 

Now it's time to put your company's audience segmentation into practice. This means creating campaigns that will attract, convert and retain customers who are aligned with the ideal consumer profile. 

remember that this does not limit the reach of your company, on the contrary, allows it to increase conversion rates and generate a better customer experience who are attracted to her. 

No marketing plan it will be necessary:

  • identify the best products for each persona;
  • define the communication channels that will be used;
  • establish the type of language.     

Conclusion

Now, you have what you need to create marketing and sales campaigns that generate excellent results for the organization. 

If you've come this far because your goal is to increase your online store's conversion rate and improve your customers' shopping experience, we invite you to get to know smart search, recommendation windows, retention pop-up e hotsites from SmartHint. 

Discover the solutions!

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Tânia d'Arc

Tânia d'Arc

Graduated in letters and post-graduated in digital media, she is passionate about words, communication and details.
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