Your brilliant app won’t do you or your customers any good if it doesn’t appeal to the intended users. Identifying the correct users and understanding their preferences plays a vital role in the app’s success. Segmenting customers is an excellent way of ensuring that your app caters to the requirements of each market segment you want to target.
Market segmentation is a process in which we bifurcate the app users into small groups based on various factors like age, location, user behavior, and other factors. We do this to understand what appeals to each different market segment.
Segmentation will help you in including various features in your app, which shall appeal to your users. Also, Top-level digital marketing companies cater to specific messages to each market segment instead of sending a generic message to all user groups with the help of segmentation. This strategy of targeting separate user groups helps in improving the results.
In this article, we shall discuss various segmentation strategies and how to use them.
Choose Right Segmentation Strategies to Resonate with your Potential App Customers
This is the most basic type of segmentation and includes segmentation based on various factors like Age, Race, Gender, Education, and Ethnicity. This type of segmentation is quite broad and will help you in taking calculated decisions about your audience. For example:- if your app is a sports news app, then it is very likely that it will attract more male audiences. Hence you should keep the design and layout of your app such that it appeals more to the males.
Similarly, if your app is a youth fashion apparel app, then you should include bright colors and should utilize the services of celebrities that appeal to the youth.
Different things appeal to different users, even users in the same age group. Also, having different levels of income and education will have different requirements. Demographic segmentation will allow you to understand the everyday needs of each group and craft your app accordingly.
Once you have a clear picture of demographics in your target market, you should then try to leverage it to your advantage. For example, if you are targeting younger users, then it is a good idea to target them on Facebook and Twitter, while you should target working professionals on LinkedIn.
You can reap rich dividends if you follow a targeted marketing strategy. For example, an ad directed towards honeymoon travel to Bali will be better suited on Instagram, which has more young followers than the older ones. This would ensure that at a lower cost, you get the maximum benefit out of your advertising spend. While conducting demographic segmentation, certain factors need to be taken into account. For example, cultural factors and personal preferences have a significant impact on the customer’s buying decisions. With time as people age, change jobs, move to other locations and go through other life-altering events like marriage and childbirth, their preferences change.
To conduct demographic segmentation, you can easily avail of most of the data from the Census of your respective country.
Segmentation based on Usage Pattern
The product offering and marketing efforts should differ to various customers based on their usage patterns and previous history with your app.
You could segment your buyers accordingly into the following segments
- Heavy users/Loyal customers
- One-time buyers/Light users
- Occasional/ Seasonal users
You could ask the heavy users what clicked with them. What is the most important thing that they liked about your app. Then target your efforts accordingly towards converting the one-time buyers and occasional buyers into loyal customers.
Also Read:- Big Data analytics can help you in identifying customer sentiment.
To segregate customers based on their location is a ubiquitous form of customer segmentation. Due to the peculiar geography of each area, buyers have individually specific requirements. For Instance:- if you have a weather app it would be nice to show advertisements related to winter wear to people living in the USA during the December-February season. While for Australian citizens, you should display these ads only during the June-august season as Australia lies in the southern hemisphere. That is because of the winters set in earlier in the southern hemisphere than in the northern hemisphere.
As the name suggests, Behavioral Segmentation is customer segmentation based on various behavioral patterns exhibited by the customer. For example:- Customers normally behave differently during the festive season and show a higher propensity to buy things during this time. Greeting card companies take advantage of this behavioral pattern of the customer, especially during special days like Mother’s Day and Valentine’s day.
A specific group of buyers have particular preferences, they expect a brand to know their preferences and cater their offerings accordingly. For instance:- Buyers of luxury goods like high-end gadgets and luxury cars expect a certain level of differentiation in their product which makes their owners stand out from the rest of the crowd.
Buyers sometimes put more weightage on certain features and choose brands accordingly. For example, for one buyer, the color of the apparel might press the buying button while for the other, it might be the brand name which is more appealing than the color.
Sometimes buyers buy a product or service habitually. For example:- Although there might be no noticeable difference between two potato chips brands, loyal customers just won’t switch brands. This is because they have been habitually buying the same brand for many years.
You should identify the various behavioral patterns of your buyers and make the necessary inclusions into your app. For instance:- If you are running a business news app then how should you cater your content to your audience? We all know that business owners are generally pressed for time and do not prefer to read long articles, especially during mornings.
Hence it would help if you made your content short and crisp during the mornings and then maybe follow up with a more in-depth article on the subject during the evenings.
Also Read:- Determining the right time to converse with the right customer using the right message
This segmentation delves into understanding various factors like Life-stages, hobbies and interests, and segments the customers accordingly. For example:- If you have a food-delivery app, then seeing the rise in awareness about the environment among users, you should give the users the option of avoiding plastics in packaging. This would attract environmentally aware people to your brand.
Segmenting your customers into manageable groups is necessary to achieve more penetration in the market. It will add depth to your marketing efforts if you choose to target your audience according to their preferences instead of sending out a general message to all of them.
Here are 6 ways you can segment your audience:
1. Geographic location
2. Customer actions
3. Customer In-action
4. Buying Behaviors
5. Frequency of App-Use
CleverTap can help you segment and monitor app users to create more effective, targeted messages that result in higher app use and engagement, which could drastically improve your bottom line.
Behavioral segmentation helps you better understand your customers by allowing you to cater to specific segments of customers with distinct needs, preferences, and behaviors based on their actions across all the touchpoints in your product or service.
Loved the blog! It was very informative! Keep up the good work!