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The Power of Personalization: Unlocking Marketing Segmentation

Apoorv Bhatnagar Apoorv, Sr. Digital Marketing Manager at CleverTap, drives digital marketing strategies. Expert in SEO, analytics, and channel marketing. Previous roles at Freshworks, excelling in organic SEO, lead generation, and CMS activities.
The Power of Personalization: Unlocking Marketing Segmentation

Universal spray and pray campaigns broadcasted to a faceless mass are a thing of the past, brands that flourish in this hyper competitive marketing landscape are those that ditch the one-size-fits-all approach and use marketing segmentation. Customers expect brands to understand and cater to their distinctive needs and preferences by crafting and delivering experiences that resonate and provide value. This is where marketing segmentation comes in, acting as a powerful tool to unlock deeper customer understanding and unleash the true capabilities of personalization.

What Is Marketing Segmentation

Marketing segmentation is the strategic process of classifying a broad target market into smaller groups with similar characteristics to easily manage them. By segmenting the customer base in smaller cohorts, brands can gain a deeper understanding about the audiences, tailor marketing campaigns and promote products that effectively resonate with them, eventually boosting engagement, conversions and CLTV

Marketing segmentation can be approached from varied dimensions, depending upon the set goals and customer data on hand. Listed below are a few of the most common categories of segmentations. 

Demographic Segmentation

Dividing users based on shared demographic data points like age, gender, marital status, education, family size etc. This is a rudimentary approach which might not paint a clear or complete picture. For instance, targeting millennials solely depending on age might miss a significant segment that skews older or younger depending on the product or service.

Geographic Segmentation

Splitting users by location to target them with products or services based on geographical characteristics like, country, state, city or zipcode etc. Particularly useful for brands with localized offerings or varying marketing regulations across regions. Picture this, a company selling winter wear; their marketing efforts in Miami will significantly differ from their campaigns in Alaska.

Psychographic Segmentation

Grouping users based on psychological traits like values, interests, lifestyles, attitudes and more.. These aspects can help marketers tailor messaging and product recommendations that resonate with specific consumer mindsets. For example, a brand selling sports gear will target a segment that prioritizes health and fitness with campaigns that highlight the performance benefits of their products.

Behavioral Segmentation

Sorting customers based on the behaviors they exhibit like past actions and interactions with the brand, purchase history and campaign engagement. By closely monitoring and analyzing the users in each cohort, brands and marketers can pin-point high-value users, forecast future behavior and actions and personalize the customer journey for them accordingly. A well crafted behavioral segmentation strategy would allow brands and marketers to target users with special offers or deals to nudge them towards a conversion.

Objectives of Marketing Segmentation

Dividing (Bifurcating) a broad audience into distinct groups is not just a marketing exercise – it’s a strategic move with powerful objectives. Here’s how market segmentation helps businesses achieve overall success:

Develop The Right Product

The power of segmentation enables businesses to gain invaluable insights into the needs and preferences of different customer groups. This allows brands to develop products and services that address users’ pain points and optimize costs by allocating resources on features that the users require.

Price it Right

Segmentation helps businesses understand how different groups perceive value and how much they are ready to pay for a certain product or service. Brands can then set competitive prices that resonate with each segment maximizing reach and profitability. 

Promote It

Segmentation allows marketers to craft compelling messages that target user groups according to their interests and choose the most effective communication channel to reach them.


Brands can use segmentation to gain insights about the buying habits and preferred mode of shopping to ensure that the product is available in the right places, making the purchase journey hassle free for every user group. 

The Benefits of Market Segmentation

There are undeniable advantages of leveraging a marketing segmentation strategy, like…

Better Targeting

Brands can accurately define distinct user segments to ensure that the marketing messages reach the correct set of people at an appropriate time. Such a laser-focused approach eliminates the waste on ad spend and maximizes ROI. For instance a brand selling athletic gear. They could segment their audience by sport (running, basketball, baseball, yoga) and tailor their marketing messages accordingly. This ensures that runners see promotions for running shoes and apparel, while cricket players are notified about cricket-specific products.

Increased Relevance

When marketing campaigns resonate directly with the needs and interests of the users, they are bound to find value in them. Segmentation allows markets to craft personalized messages and product recommendations with a higher likelihood of conversion. For example an email listed with products you’re genuinely interested in versus a generic marketing blast that doesn’t pique your curiosity.

Better Engagement and Loyalty

Foster stronger customer relationships with a deep understanding of what the users need. For instance a finance and investment company leveraging marketing segmentation to group the customers by investment goals (retirement planning, college savings, wealth management etc.) and providing them with appropriate investment opportunities that cater their specific needs. By segmenting the audience, businesses can tailor their  interactions for each group, fostering a sense of personalization and building brand loyalty.

Increased ROI

Brands can utilize their marketing budgets more efficiently by targeting specific segments with relevant campaigns and achieve a greater return on investment. For example a music streaming service can segment their user base depending on their listening habits to promote new artists accordingly (pop enthusiasts, rock fans etc.)

Improved Customer Lifetime Value

By catering to the specific needs and preferences of different customer segments, brands encourage repeat purchases and build long-term relationships with the users. Segmenting users by past purchases and history could prove to be useful while offering personalized product suggestions in the future increasing the chances of customer satisfaction and hence reducing the probability of churn. 

Data-Driven Decisions

Marketing segmentation empowers brands to leverage customer data to make informed marketing related decisions. Marketers can gain valuable insights by analyzing customer data within each segment to refine and optimize campaigns for maximum impact. 

To unlock the magic of personalization with marketing segmentation consider using an all in one customer engagement platform like CleverTap. With CleverTap’s advanced segmentation capabilities and customer data management features brands can truly harness the power of segmentation to orchestrate bespoke marketing experiences that will leave the users in awe. 

Remember, segmentation is the captain that steers your brand towards success. So, start now, segment your audience, and personalize your marketing efforts to create an exceptional customer experience. To learn more, schedule a demo.

Posted on March 21, 2024