Understanding target customers in this way can also help companies expand into physical locations where their customers are likely to live. For example, if a brand discovers through micro-segmentation that its products are most popular among young, highly educated women, decision makers might prioritize expanding into areas with a high population of women working in STEM fields to capitalize on existing markets.
Typically, groups created with micro-segmentation consist of a handful of customers, which helps brands with highly personalized predictive analytics and marketing optimization. As a result, it becomes easier to predict the effectiveness of sales and marketing strategies on different micro-segments or customers.
Microsegmentation variables
Micro segmentation variables refer to the different categories by which customers are divided into architects email list small groups. This includes segmentation based on demographics, product usage, purchasing behavior, and situational factors. Let's understand what these variables mean.
Demographic segmentation involves segmenting your customer base based on demographic data such as location, age, gender, job profile, income, etc. If you are a B2B organization, you can segment your customers based on parameters such as industry, company size, and geographic location.
The rationale behind segmenting consumers based on demographics is that customers are naturally inclined to purchase goods and services based on their demographic characteristics. Dividing your customer base based on demographics also allows you marketing teams to create strategies that are appropriate for the areas you are supposed to serve. For example, if most of your customers live in New York City, your marketing strategies should be designed to focus on expanding into New York City.