Audience segmentation refers to dividing a large target audience into smaller segments.
Detailed Explanation
Also called customer segmentation, audience segmentation breaks a customer base into more specific and manageable chunks. Each segment has similar characteristics, such as age, gender, location, interests or behaviors that influence how they react to marketing.
Audience segmentation is a valuable marketing strategy for companies looking to offer a more personalized experience to their customers. After all, personalization is key for improving customer loyalty and building strong relationships — over 60% of online shoppers said they wouldn’t remain loyal to a brand that doesn’t offer a personalized customer experience.
Audience segmentation also allows you to:
– Determine a larger target audience and multiple sub-audiences. – Change marketing and messaging to appeal to each sub-audience. – Meet specific demands to increase clickthrough rates, conversions and ROI. – Generate a greater number of leads.
Keep in mind that audience segmentation is different from market segmentation. While audience segmentation groups a target audience into smaller segments based on demographics and similar interests, market segmentation divides customers into subgroups based on the products and services they buy.