Learn the 6 Types of User Segmentation and Find Your Target Customer

Learn the 6 Types of User Segmentation and Find Your Target Customer

09 Feb 2021


Akash Shakya

If you want to retain customers in your business, you need to know what they want. Not all of your customers will have the same habits or behaviour. 

User segmentation helps solve this problem. It helps differentiate your customers based on their actions, what they click on, and what they are purchasing. 

Segmentation is about taking your target market and breaking it down even further. It’s about knowing your target market’s needs in every area of your business. 

When you segment or categorize your audience, you can do it in different ways. You can do behavioural segmentation, Facebook user segments, mobile user segmentation, and more. 

Here’s a guide on the 6 types of user segmentation that can help you find your target customer. 

How to Identify Your Target Market

Before you segment your audience, you need to know who they are in a broader sense. You want to know what kind of customers you can help, how your product can help them. 

One of the ways to identify your target market is to think about someone’s problems. You want to know who your product is helping. That’s why it’s important to think about their problems, their age, where they hang out, and why they make a purchasing decision. 

For example, if you were launching a baking business, how you would you identify your target market? Who is your ideal customer? 

You would have to consider people who need your product. They may be customers who want baked goods for birthdays or weddings. They may be people who don’t want to bake anything themselves because they don’t have time for that. 

The more you can know about your exact target market, the better you’ll be able to segment them. The better you can differentiate them by their interests. 

Here’s a blog article on our website that can help when it comes to market research. 

1. Behavioural Segmentation

The first kind of segmentation you should know about is behavioural. 

This kind of segmentation looks at someone’s decision-making process. It looks at why people buy. This is especially important around holidays when people will often buy more. 

Businesses will figure out what kind of audience will buy from cyber sales. They will figure out who to target when Black Friday comes around. 

An example of behavioural segmentation is looking at someone’s bias and when they purchase items. They may have a particular bias toward a brand or a product, which influences their purchasing decision. 

When you do segment by behaviour, it allows for you to personalize your content. You are able to target your market based on the decisions they make, not based on their age or demographic. 

Behavioural targeting is an effective way of targeting your market but it’s important to consider other forms of segmentation. 

2. Demographic Segmentation

Segmenting by demographic is the traditional way of breaking down your target market. 

With demographic, you can segment your audience by age, gender, income, and more. You also take a deeper dive into the family size as well as the person’s religion. 

As a business, you are seeing how these factors influence the purchasing decision. If the person is very religious, are they more inclined to buy religious products? 

This is a question you should be asking yourself as you segment your audience. 

When you ask these types of questions, you’ll discover how similar your audience is in these particular categories. That way you can put a segmentation of your audience on an email list and send them promotions that are more relevant to them than other people. 

3. Cultural Segmentation

Another form of segmentation is cultural. 

With this segmentation, you are able to look at their cultural history, looking at the community they live in and how it affects the customer’s decision-making. 

This kind of segmentation is important to understand because it helps you figure out traditions within the community. You are also seeing how brands reflect a particular culture or embody it. 

You have to take into consideration this kind of segmentation because it can be a major part of why someone makes a purchase from a business. 

4. Geographic Segmentation

Geographic segmentation is about targeting people in a specific country. While this is a broad kind of segmentation, it can still help you figure out your market. 

Geographic segmentation is also about the city in which one resides. If you are segmenting based on a particular city, it may give you some insight into the values of that particular city and how it affects someone’s decision to buy. 

5. Psychographic Segmentation

Similar to behavioural segmentation, psychographic segmentation is about understanding the psychological reasons of why someone’s buys. 

For example, you might try to figure out how someone spends their time and what factors influences their decision. 

You also want to take a look at how this particular group of people want to be perceived. Are they buying to achieve a certain status? Do they want to appear rich when they buy something? 

These are psychological questions you have to ask in order to figure out your market, especially if you are trying to segment based on psychology. 

6. Occasional Segmentation

Finally, it’s important to realize the value of occasional segmentation. This is when events happen in someone’s life that causes them to make a purchase. 

For example, people are more likely to buy items around valentine’s day for their loved ones. Valentine’s day is an occasion. If you have a product that is designed for a loved one, you can market it around Valentine’s day. 

You can segment an audience based on how likely they are to buy during a specific holiday. 

The Benefits of User Segmentation

One of the benefits of user segmentation is that it offers a lot more personalization. You are creating emails and content designed for a specific part of your market. 

You can offer personalized subscription models based on your segmentation. As a result, you will drive in more sales to your business. 

Another benefit of user segmentation is that it drives in more leads. When you segment your audience based on one of the 6 types mentioned in the article, you better identify with them. 

Without segmenting your audience, you are assuming everyone in your target market is the same. You are assuming that they all shop the same. That’s why you should segment your audience. 

You are categorizing your audience based on their needs and how they shop. This results in more personalization and more leads. The people who see the benefit of your content will want to buy from your business. 

The final benefit of user segmentation is that it offers you a new opportunity. As you continue to segment your audience, you may realize that there’s a gap in the market. You may realize you have the opportunity to create new products for your target market. 

How to Segment Your Audience 

You may know the different segmentations that can help you better identify your target market and the benefit of segmenting, but you may not know some strategies that can help you segment your market. 

One of the ways you can learn more about your audience is with surveys. You can send them surveys via email or mail. It can give you an idea of what they like from your business and how you can change it. 

Surveys also make your target market feel heard. They feel appreciated because you are catering to their needs. 

You should also always look at the data. Depending on how you segment your audience, the data will help you figure out how your customers make a decision when they buy. The data can tell you how long someone is on your website. 

Overall, there is a lot of ways to understand users and why they purchase from your business. The important thing to remember is that your business needs to segment when it comes to email campaigns and other marketing strategies. 

When you segment your audience, you’ll generate more results because you’ll know your target market better. 

If you want to learn more about user segmentation, especially when it comes to the user experience, check out this blog article on our website. 

Why You Should Segment Your Audience

You should do user segmentation because it will help your business profit more. It will help you attract more of your audience because your content will be more specific to them. 

These 6 ways are the best methods to segmenting your audience and can spark some ideas on what you should do in your marketing strategy. 

If you want help with your marketing strategy, you can contact us here

Akash Shakya

Coming from distributed computing background, Akash manages the Sydney operations. He is highly technical yet very business focused and is always driven to create successful business products for our clients.

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