Understanding Marketing Segmentation and What it Means

You have most likely heard about marketing segmentation and the huge role it plays now in email marketing. Segmentation means that you are breaking things down.

This has become extremely important for email marketing.

This is because most email lists were going to all customers. Your customer base varies. You may have only one type of individual that will respond to a specific email.

You may send a different email to another 20% of your customer base. This means that breaking down your email list into segments is effective.

You can be more effective when targeting different customers with different material.

Today, I’ll share with you why there is value in segmenting your audience, and how you can use it to increase your profits.

Why Marketing Segmentation and Email Marketing Go Hand-in-Hand

Email marketing is huge.

It is one of the most important tools you’ll use to run and maintain your business. There are numerous things you’ll notice as you begin to work on your marketing endeavors.

You’ll see the value in the following:

  • Demographics
  • Lifestyle
  • Geography
  • Behavioral traits

There are various reasons to look at these factors as vital to your campaign. Those who live in a low income area will not respond the same as someone who lives in Beverly Hills.

Those who drive a Porsche will not respond the same as someone who drives a Nissan Versa. The same is also true of those who live in different areas.

Those who live in Alaska are not going to be interested in products that are sold to folks that live in Florida. Does this make sense?

This is the point I’m trying to make.

Marketing segmentation is extremely important in order for your email marketing to be successful.  Once you begin breaking down your customers into segments, you can easily see which ones are worth marketing to.

You’ll see that one segment can do well with one newsletter each quarter, whereas your most vested customer base should be one that you market to more frequently.

So what determines which segment of your email list gets the most attention?

Here are some things to look for:

  1. Size. The size of your list does matter. When you have 5,000 in one segment and 300 in another, the list that has 5,000 names and email addresses is the one worth pursuing. The larger a segment is, the more eyes will be on the emails you send.
  2. Is there potential? When it comes to growth, what do you get? Is there an opportunity with your groups to grow them? The larger numbers may also equal what type of sharing you can get. You also need to make the discovery of where you can have a better profit margin with less work involved. This is a great motivator to work toward freedom.
  3. Is the competition fierce? What about the competition? Is it too high? Could you do the same thing in another market for more money and the same amount of work or less work? Review the marketplace before you make a final decision. Sometimes the less competitive market is the one to look at, and sometimes it isn’t. It really depends on the product or service.

There are so many things to consider when you start and build a business. Once you begin to start using these various marketing methods, what happens next?

As you focus on what works for your email marketing campaigns, focus on marketing segmentation and you’ll have more growth potential as a result.


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