Market Segmentation: What Are the Benefits?
Posted: Wed Apr 23, 2025 3:22 am
By dividing all your customers into smaller market segments, you can target them better than if you used a one-size-fits-all strategy. This creates a better user experience for each type of customer, which leads to customers spending more money and being happier.
The goal is to find purchasing patterns in certain groups. For example: Do you sell more winter boots to customers who live in countries and regions where it snows? Do you sell more vitamins to people over 50? Do customers spend more than $200 in a single order when they have already visited your site once or twice before? Do your loyalty program members prefer free shipping to a 20% discount?
Once you find the patterns and make the connections, you can use each market segment in your marketing strategies. The most popular and effective ways to use market segmentation are in email marketing, online indonesia email list advertising like Facebook Ads and Google Ads , and A/B testing for your website.
You might be wondering why segment the market: well, online shoppers have access to fast technology and thousands of websites to choose from to buy what they want. Over the past decade, this has created a huge demand for a personalized shopping experience. In fact, one study found that 64% of shoppers want personalized offers. If the experience isn’t personalized, 52% said they’re likely to shop elsewhere.
And that shift is paying off. According to eMarketer, 48% of U.S. marketers said that since they personalized their websites and apps, their revenue increased by 10% or more.
Here are some of the benefits that demonstrate the importance of market segmentation:
It saves you time and money. Instead of using a generic strategy for all your customers, market segmentation can help you target your marketing efforts to specific groups of people . This means you won’t waste time and money on ineffective campaigns, because your efforts will be targeted and based on customer data.
The goal is to find purchasing patterns in certain groups. For example: Do you sell more winter boots to customers who live in countries and regions where it snows? Do you sell more vitamins to people over 50? Do customers spend more than $200 in a single order when they have already visited your site once or twice before? Do your loyalty program members prefer free shipping to a 20% discount?
Once you find the patterns and make the connections, you can use each market segment in your marketing strategies. The most popular and effective ways to use market segmentation are in email marketing, online indonesia email list advertising like Facebook Ads and Google Ads , and A/B testing for your website.
You might be wondering why segment the market: well, online shoppers have access to fast technology and thousands of websites to choose from to buy what they want. Over the past decade, this has created a huge demand for a personalized shopping experience. In fact, one study found that 64% of shoppers want personalized offers. If the experience isn’t personalized, 52% said they’re likely to shop elsewhere.
And that shift is paying off. According to eMarketer, 48% of U.S. marketers said that since they personalized their websites and apps, their revenue increased by 10% or more.
Here are some of the benefits that demonstrate the importance of market segmentation:
It saves you time and money. Instead of using a generic strategy for all your customers, market segmentation can help you target your marketing efforts to specific groups of people . This means you won’t waste time and money on ineffective campaigns, because your efforts will be targeted and based on customer data.