Create effective and impactful marketing materials by segmenting your audience.
According to Wikipedia, audience segmentation is a process of dividing people into homogeneous subgroups based upon defined criteria.
And, by the end of this article you will know how to easily create audience segmentation for a specific product/service in your small business today!
Wait a Minute
Before we get started there are some things you should already have in place before moving forward. They are:
- A marketing plan for your specific product/service, which I will refer to in this article as product X
(If you need help creating a marketing plan click here to get my free marketing plan template and then come back to this page.)
- A measurable sales goal and objective for product X
- The key benefits product X offers
And also make sure you understand:
- Your competitor landscape, as it relates to product X
- Your target audience
- Audience segmentation is different than identifying your target audience. For audience segmentation, you need to look at key information about a specific product/service versus looking at your business industry.
Step 1: Take Your Current Temperature
The start of any good marketing always begins with a look at where you’re at and where you’ve been. So first, we need to take a detailed look at some key data from the last 12 months.
Specifically, the product X data we will look at is:
- Purchase history
- Call history
- All your past marketing materials and tactics
Using the questions below you will start to identify what customers you have the strongest potential to satisfy. Make sure to ask key employees these questions and jot down their answers as well.
Reviewing the last 12 months of data for product X, answer these questions:
- Does the purchase history have sharp highs and lows?
- If so, why? Is it seasonal?
- What are the frequently asked questions?
- Do customers seem to easily understand the value of product X?
- Do you find you have to keep explaining the value? Which part do they not seem to understand?
- Capture any success stories you have about product X
- Also capture the biggest complaints
- Do customers call you specifically for information about product X? Are they ready to purchase or signup?
- How many calls do you receive in a day? Week? Month?
- What marketing materials have you developed in the past? i.e. social media, blog or product page, brochure, email campaign
- What material worked well?
- Why do you think it worked?
- Do you have any metrics?
Do you have a new product/service and no history to review? Use your marketing research and give your best guess to the answers above.
Step 2: Get to Know Your Ideal Customer
Now get more narrow in your audience identification and group your audience together by common similarities (demographics).
Review the answers from above and answer these more specific questions:
- Are the majority of product X customers male or female?
- What area of town are they from?
- What is their average income?
- From the success stories you captured, use your best guess and jot down the average age of these customers
- Do the same with the complaints; use your best guess and jot down the average age of these customers
Next, look at this generalized information and write a short narrative about them.
- Here is an example from a luxury car company:
Audience Narrative: A college graduate with a household income over $100,000, 85% male, and 15% female. This typical customer is 40 years old and up
Step 3: Psycho-What?
Ok, you are almost done and now we’ve got to make it all come together. Our next step is to understand the psychographics of your audience. Psychographics is a fancy way to say “understanding a few key behavioral aspects of a person.” Psychographic segmentation uses psychology to increase understanding of consumers’ wants and needs.
Looking at your answers and the narrative you just created, answer these psychographic questions:
- What is this customers typical attitude?
- What kind of personality do they have?
- What does their lifestyle look like?
Take the audience narrative you created in step 2 and turn it into a short audience story using the answers you just added above. Give this audience a profile name and make sure to expand their story using some of the behavior elements you just identified.
Using our previous example of a luxury car company, our audience story could look like this:
- Profile Name: The proud patron
- Audience Description: This luxury car owner sees this car investment as a trophy and considers it a reward for their hard work. The main “psychographic” goal of buying this car is for the simple fact of ownership, not for getting and receiving prestige and attention.
Step 4: Craft Your Marketing Message
Wah-La! We have now created a segmented audience and marketing foundation for product X.
Now you can confidently create and design marketing materials that will be more effective because you have done the work to identify the type of customer who will benefit the most from your product X.
Each piece of marketing material created for product X needs to speak to this segmented audience.
My next post will show examples of good and bad marketing messages using a couple different marketing tactics like email, social media, brochures and more. Stay tuned!
If you are convinced you need audience segmentation but don’t have the time, or could use more guidance, I am here to help. I can create a solid foundational marketing campaign and message for you.
Let’s chat and see if we would be a good fit for each other.