What Is Involved in a Market Segmentation Analysis?

Are you aware that personalization is the key to connecting with and converting prospects into customers?

We sure hope so, but in case you're not, you'll find this fun fact intriguing -- more than 78 percent of consumers will only engage with offers that are personalized (based on their past interactions with a brand). Another 87 percent say that personalized content influences the way they feel about a brand.

Market segmentation.

If you're not already collecting data to segment your campaigns and deliver personalized content, then it's time to start. If you are doing this already, then it's imperative that you run a market segmentation analysis regularly. To do this, you need clean data with which to work.

Dirty Data Is Detrimental to Your Segmented Campaigns

Everything you do in marketing is based on data (or at least it should be). This is why marketers spend so much time gathering insights to improve their campaigns. The problem here is that poor data quality can lead to mishaps, missed opportunities, tracking errors, and inaccuracies throughout your campaigns.

The way you design marketing collateral, develop copy, and create offers depends heavily on the data you generate about your core audiences. Get this right, and you'll have a better chance of converting them. It'll also make it easier to analyze your campaigns to see what's working and what's not.

Let's see how you can determine this.

Brush sweeping away to reveal a clear floor.

Really Get to Know Your Target Market

Are you currently targeting the right people? If so, are you delivering the right message?

It's impossible to know this without understanding your target market. So to start, you need to research, research, and research some more. From here, you can identify whether your campaigns align with your audience. If you're going through your new data and see there's a mismatch, then it's time to make some changes to your buyer personas.

See if There's a Market You're Missing

It's common for brands to overlook micro markets. These are smaller markets within the current market you're segmenting. For instance, if you're targeting retirees, you may also find a small market of senior citizen entrepreneurs on which you should also focus. The marketing message you'd use for either would look different. If you're selling real estate, you'll find retirees may want something smaller and cheaper than the entrepreneur seniors.

Person handing home keys to a purchaser.

Eliminate the Weaklings from Your Campaigns

You may start out with a good number of markets to target. In fact, you may have been a little over-ambitious with your strategy.

Of course, the only way to know is to look at your data. This will identify whether you're wasting your time with one or more non-converting or irrelevant markets.

You can begin with your bigger markets and work your way down to the micro markets. See if you can tweak their customer profiles to be more specific. For instance, rather than targeting men 18-55, you can narrow it down to 40+ men who are married professionals. This will allow you to focus in on an audience that has the desire and budget to pay for your product or service.

Follow the Trending Theme - Data

The amount of data you're collecting each day is astronomical. To shed some light, by 2020, there will be an astonishing 35 zettabytes of data generated annually.

In the big data era, sorting through it all can be a headache, especially when you don't have the correct tools. You need a way to collect, organize, and analyze your data so you can extract meaningful insights to improve your marketing initiatives.

The bad news is that many companies are wasting billions of dollars on dirty, meaningless data. If you've been collecting mountainous volumes of data on your customers, this doesn't mean you have to throw it all away. Instead, you can perform data cleaning and data enrichment.

Before you do, click here to learn how dirty your data is right now!

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