Delving into the Different Types
of Customer Segmentation

Customer segmentation is imperative to the success of your business. It should play a huge part in your social media campaign and it should also help you to make decisions moving forward. If you have never given much thought to segmentation before, here are some of the different types you should be exploring.

Behavioral and Demographic Segmentation

Behavioral segmentation tops the list. Identifying customer patterns so you can engage customers in your website content is crucial. Amazon is a prime example here. They suggest products to their customers based on shopping history, as well as the time spent interacting with various elements. YouTube also recommends videos based on a viewer’s history.

When running a social media campaign, behavioral segmentation can help you to leverage new and existing audiences conveniently. You can see this clearly in the iGaming market. Suppose you have segmented an audience who play Spin Till You Win Roulette. In that case, you can then go on to suggest Quantum Roulette and Live Speed Roulette as alternatives, while offering promotional bonus codes that reflect the games your audience is likely to play. This helps you to curate campaigns that accurately reflect the likes and dislikes of your users, using your data to hyper-personalize the ads they are receiving.

Another type of segmentation would be demographic segmentation. Is your audience predominantly male or female? What’s their median age? By taking data like this from AdWords and Facebook Ads, you can then further target audiences, while boosting the effectiveness of your social media campaign.

Psychographic Segmentation

Psychographic segmentation can be complex, as it takes into account opinions, beliefs, emotions and dislikes. If you work as a fintech provider and you provide insurance you will need to create custom segments. You may want campaigns that cater to individuals who work in high-risk environments and different ones for those who are planning for the second inning of their life with a retirement insurance plan.

The risk appetite of individuals also has to be taken into account here, which can lead to hypersegmented campaigns. Although campaigns like this are highly effective when it comes to the creation of compelling marketing messages, it can be difficult to make it work if you don’t have a solid understanding of your audience. Apple, Netflix and even Nintendo are prime examples of brands that use psychographic segmentation to cater their campaigns to meet the needs of niche audiences.

For campaigns to be truly effective, all three customer segmentations need to be utilized in combination with each other. This can lead to the creation of a lot of different campaigns, but with that being said, each one will be higher in effectiveness as a result. Social media has paved the way for hypersegmentation by giving brands the data they need to learn about their consumer likes and dislikes, with tools such as Google Analytics filling the gaps.

In 2024, segmentation is more important than ever, as personalization becomes a necessity to reach consumers effectively. If businesses want to succeed, hypersegmentation is a must, so that campaigns can be curated according to the demographics you’re trying to target.