Audience segmentation
Short definition
Audience segmentation divides a broad target audience into smaller groups based on behaviour, interest or demographics.
Criteria such as age, location, purchase history or on-site behaviour are used to split a broad audience into more meaningful groups. An online shop, for example, can treat cart abandoners, repeat customers and first-time visitors as separate groups. Each group stands at a different point in its relationship with the brand, and needs a different approach.
Preparing a distinct message or offer for each segment draws more interest and converts better than one generic message sent to everyone. Remarketing and email automation are both built on segmentation. Left unreviewed, a segment definition that was once accurate slowly starts reaching the wrong people.
Segments cut too finely make it hard for each group to gather enough data; segment count needs to be balanced against audience size.
Why it matters
Without audience segmentation, the same message goes to everyone; an irrelevant message both lowers conversion and makes a brand look out of touch. It ensures marketing budget reaches the right person. Done well, it aims not at reaching more people on the same budget but at reaching the right ones.
