Category Segmentation for Better Email Management

This is the business practice that's backed up by research on how a business divides its potential customer base. The groups are made up of potential leads with shared interests and characteristics that a business can leverage in its advertising, marketing, and sales efforts.

The purpose of category segmentation is coming up with a more tailored email message that is received positively. Since you can't appeal to everyone in the market, segmentation is an effective growth strategy for email management.

What are the 4 types of segmentation?

There are many ways you can divide your target market. The most common ways are:

1. Geographical Segmentation

Customers in different geographic areas can have very different interests, preferences, and values. Understanding these differences helps you give them what they're looking for. It also helps you in knowing the phrases your customers are using while searching for your products.
Marketing great products in the wrong region can lead to low sales.

For example, think of products like bathing suits and parkas. The latter is likely to sell more in the colder, northern half of the country, where the southern part would only sell them during the winter. Similarly, bath suits are sold around the year of the warmer states and only sold during the summer and spring of other countries.

2. Demographic Segmentation

The needs of customers change as they transition in life. Demographic segmentation will divide your market through variables such as family size, occupation, education level, and more. Media consumption varies from one age-group to another, so it's crucial to know your age target and the channels they're using to consume information.
This segmentation is widely used for products tailored to the needs of a specific group.

3. Psychographic Segmentation

The division focuses on the understanding of the intrinsic values of your customers. Psychographic traits can vary from personalities, interests, attitudes, values, lifestyle, opinions, conscious, and subconscious motivators. Someone living in the suburbs and a person living in the city has completely different attitudes, and every marketer needs to recognize these differences and leverage them.
For B2B businesses, the characteristics will vary based on the budget and the size of the company.

4. Behavioral Segmentation

This has similar measurements as psychographic segmentation but focuses on the customers' buying journey and decision making. How your customers relate with your brand, how they use your products, and their knowledge base are all examples of behavioral segmentation.

Why generalised segmentation isn't working for you?
Here are the common mistakes marketers make in the process.

1. Creating very small segments

This is driven by wanting to make sure you've got every tiny detail of every person. If a segment is too small, you could end up losing the buying power of the group, as you can't quantify your results.
Remember, every customer is different, and you can't appeal to the aspect of every single person.

2. Staying with a strategy for too long

People change, and it's your duty as a brand to keep up and adjust with the needs of your consumers.

3. Focusing too much on the segment instead of the money

You might have come up with a significant segment that is aligned to all the characteristics you need for your segment. But if the group doesn't have the purchasing power to buy your products, then you won't make any ROI.

What are the simple steps to creating a segment?

If you're ready to come up with your market strategy, here are some steps to guide you.

1. Define your market

How does your product or service fit in the current market landscape? Is the solution you promise to give relevant? What's the size of your market? All these questions are important in the first stages of creating a marketing strategy.

2. Segment your market

This is where the fun begins. Decide the best category segmentation for your business. Remember. It's okay to use more than one strategy.

3. Understand your market strategy

Ask your customers questions related to your segmentation to know their interests. This can be accomplished through surveys, polls, or focus groups. Ensure you ask questions that you can quantify.

4. Build your segment

Use the responses you received from your customers to come up with a personalized customer segment.

5. Test your strategy

Make sure you run tests and try making adjustments where required, before you settle for your segments. If you're not getting results to revisit the answers, your customers gave you, and find out what you might be missing.