Why is audience segmentation important for your business? (+ the easiest way to do it)

Identifying your target audience will lead to higher conversion rates and more sales. Knowing exactly who your brand and products are speaking to is the easiest way to increase your revenue and get your products into the hands of customers who want them.

However, true audience segmentation is a multi-step process that uses data from a variety of sources like point-of-sale, Google Analytics, and others. It takes a true expert to drill down through these data silos and find the audience segments that are best for your business.

Let’s examine why audience segmentation is important for your business and the easiest way to do it.

Why is audience segmentation important?

The primary reason to segment your audience is so any marketing your business does has a chance at success. Marketing isn’t cheap and finding the right audience segments will ensure that you’re spending the right money with the right media and tools.

Here are other ways that audience segmentation is important for your business.

Product development

Once you’ve identified your segments by analyzing the demographic information of your buyers or site visitors, you can extrapolate further information about them, like what types of products they might be interested in.

For example, if your target market is 25-to-44-year-old single females, you may not be looking to market your latest baby product to them. However, if your target is 25-to-44-year-old mothers, then you should ramp up your advertising for all things baby.

Pricing

Knowing the best target price for your products, especially if you’re introducing a new product, is easier with proper audience segmentation. Audience demographics include things like household income, which can inform what your target audience can afford. Once you’ve established the market price that will result in the most profit, you can further determine if that price will work with your audience segments.

Psychographics and behavioral data can further illustrate how consumers feel about new products, if they’re early adopters, or if they’re in the market for the new product. All of this information put together provides the most well-rounded look at your target and how the right or wrong price could affect your new product’s go-to-market.

Delivery and distribution

Another key piece of your business is knowing where your customers are and figuring out the best ways to get your products into their hands. With audience segmentation, you can analyze geographic data that describes where your customers live, and how your current product distribution —via warehouses or dropshipping— may not be the most efficient distribution.

It’s also possible to take this information a step further and determine where you could open a retail location or a pop-up shop. By analyzing where your customers are, you can find all sorts of new ways to reach them, including adjusting your product distribution strategy.

How Lytics can transform your audience segmentation

Lytics works with brands of all sizes to determine the best ways to leverage their data. One key aspect is audience segmentation. By starting with pre-built audiences, the Lytics team is able to illustrate quickly how important segmentation is to your bottom line.

Lytics has partnered with clients to directly transform their marketing reach and conversion rates. One client was able to see a 220% increase in conversion rate once the Lytics team identified a missed opportunity surrounding shopping cart abandonment. Successes like this are possible with a partner like Lytics.

Working with top integration partners

Additionally, Lytics knows that your organization already captures a wealth of customer data that can directly inform your marketing and sales. When you connect Lytics to your marketing tools, including platforms such as Salesforce, Google Analytics, Shopify, and Facebook, your data becomes the key to unlocking your business success.

Lytics can also take your data and find true insights. With so much input, it’s important to find the parameters that will narrow in on your target and then find the right message to reach them. Broad messaging works sometimes, but now, with so much digital noise flooding inboxes and phone screens, Lytics can help you find a way to cut through the noise with smart and targeted audience segmentation.

Audience segmentation — better with Lytics

Reaching your revenue goals is about more than a great product at a great price. It’s about understanding your audience, knowing where they are, why they buy, and what they do as they look for their next purchase. By combining real-time behavior analysis with dynamic audience segmentation, Lytics can help you build your business’s reach and increase your revenue.