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As you start to become more successful in your business, you may start to hear the word Market Segmentation. What is market segmentation? If you are a small business, does geographic market segmentation matter? The fact of the day is most effective and efficient small business marketers use market segmentation to get a better understanding of their customers. In today’s blog post, I will be writing about how you can create a badass local marketing strategy using market segmentation and behavioral analytics.
What is Market Segmentation?
Market Segmentation is fairly easy to explain but very difficult to implement well. Before you start segmenting your marketing plan, you need to understand Behavioral marketing.
Behavioral marketing is the way companies target audiences based on their interests, behavior, intentions, and other metrics using digital analytics tools like search history, cookies, and other insights.
Customer segmentation is the process of isolating these interests and behaviors to better target your target demographic.
Implementing an effective market segmentation strategy is a bit like being a detective because you need to look at trends, clues, and engagement metrics to better learn how to convert them into sales or customers. When you are practicing market segmentation correctly, you will soar.
A study from HubSpot found that CTRs that utilize behavioral marketing or personalization can increase a 760% increase in revenue! So without any further ado, let’s talk about market segmentation and how to segment your customers for better revenue.
5 Tips to Implement Behavioral Marketing and Customer Segmentation.
The more we learn about the way people use the internet, the more we learn about the importance of data. If you are a marketer with an aversion to your data being used, you might want to get over that if you want to be successful in your marketing strategies. Data tracking and segmented targeting are here for a while!
- Define the target interactions you need to track
- Implement a tracking strategy and software
- Analyze and report how people are behaving on your website.
- Use that data to segment your contactsUse segmentation to nurture each contact.
These are not just tips, but fundamental strategies that build upon each other. Kind of like a hierarchy of needs, your business needs to start in the first step, then use your understanding of different target audiences to build your tracking software and behavioral tracking strategy.
The 3 Best Market Segmentation Tools for Small Business Marketing
Marketing segmentation tools are used to help your business to better understand the different demographics, interests, and intent behind every interaction that happens on your website.
There are a lot of tools your business can use to better identify market segments that you can then use to advertise better, but here are the top 3.
Hubspot’s Marketing Hub
In a lot of ways, these are boring recommendations. But these 3 tools are very common because they provide a lot of great value to small businesses. I have used sprout social on my own before and enjoyed the type of information you get across a bunch of social media marketing platforms.
The Best Tools for Tracking Market Segments and Identifying Comprehensive Behavioral Targeting
Tracking your different marketing segments to know how to target them better starts with good analytics. Many people have heard of Google Analytics but just because it’s free doesn’t mean it’s the best.
For general converting website visitors into leads, check out Google Analytics
Google Analytics does its job well and is increasingly becoming the most popular tool out there for understanding where people come from and how to market to them better. But depending on your industry, google analytics might not be the best tool for you.
For example, I have written extensively about how Shopify is one of the best eCommerce CRM’s almost exclusively because it has one of the best analytics dashboards in the entire industry. Connecting your different lead generation sources is very simple, if not a bit of a long process.
For high engagement on social media, check out Facebook Insights
Facebook insights are the marketing and analytics tools that you can use on the most popular social media site on the internet (unless you consider googling a social media source). If you know you already have a lot of traffic from Facebook, this might be the best analytics tool to identify your different market segments.
For a 3d and visual alternative to Google Analytics, use Smartlook Analytics.
I love google analytics, but it can be a bit 2d for my taste. I am a very visual person and it can be hard for me to put together a full picture without 3d perspectives on tactile data.
That’s where Big Red Jelly uses Smartlook. On our Support and Strategy team, we work with people every day using smart look insights to help improve their marketing segmentation over time. We actually really love the smart look and no, that’s not a sponsored link.
Why do the Best Small Business Marketers Use Market Segmentation?
Small businesses NEED to be efficient and effective in their marketing strategy. They have the most to lose from inefficiency and the most to gain for effective targeting. If you have been been on the fence about hiring a marketing member for your small business, consider this post your sign that you need to take your marketing more seriously.
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