- Demographics: Market segmentation based on demographic factors such as age, gender, income level, and location. This allows for the creation of better-targeted campaigns and provides the opportunity to reach out to more potential customers.
- Psychographics: Market segmentation based on psychographics such as lifestyle, opinions, and behaviors. This can help identify more niche markets and craft more specific campaigns that can attract a more engaged audience.
- Benefits: Market segmentation based on the benefits customers want to gain from a product. This provides a more effective way to position the product, connecting it to the customer’s individual needs.
- Usage: Market segmentation based on usage of the product, such as how often and how much the customer uses the product. This helps to determine the frequency of messages that should be sent and which types of content should be used.
By leveraging these four methods of market segmentation, companies can increase their ROI by focusing their efforts on the most profitable segments, and by creating more relevant messaging for both new and existing customers.