What is Audience Segmentation?
A marketing plan based on identifying subgroups within the target audience to deliver more tailored messaging for stronger connections. The subgroups can be based on demographics such as geographic location, gender identity, age, ethnicity, income, or level of formal education. Subgroups can also be based on behavior, such as purchases made in the past. Psychographics come into play when you have access to insights about your audience’s values, attitudes, and beliefs. This is a critical aspect of the digital ecosystem, offering numerous examples and case studies that illustrate its application across different industries and scenarios.
Example
If you operate an online store specializing in skiing equipment, it may not be beneficial to categorize customers by their geographical locations since many of them likely travel to ski. However, segmenting them based on their behavior and engagement levels could be more useful. Customers who have a longstanding interest in the sport and are familiar with your products are likely to interact with your business differently compared to newcomers.