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How Does Market Segmentation Play a Vital Role in Digital Marketing?

By November 1, 2021No Comments
Guest Post By Shivani Goyal

In the digital market of today’s world, every business needs to grow fast. Companies need to satisfy their customers according to their needs. To boost business, companies have to give personal attention to their customers. To provide a personalized experience to each customer, companies have to plan a strategy. Market segmentation is the perfect method for that.

Market segmentation is dividing or separating the group of customers having the same pattern and characteristics. It will help you to give a personalized experience to customers. It helps you make tailored messages, emails, and notifications for customers.

Segmentation helps companies to figure out the existing customers and target new customers. This will help companies to provide or develop products and services to customers. In today’s world, customers like 1:1 experience with the company. The market segmentation method is perfect for that as it allows separating customers according to behavior, demographic traits, etc.

What is Customer Segmentation

Customer segmentation is a method of dividing the customer into groups and sub-groups with the same characteristics or patterns. These characteristics can be the customer’s age, country, gender, climate, or activities. Segmentation allows marketers to prepare better or efficient strategies. The main goal of the segmentation is to relate with customers and provide them better services and products. The process of segmentation gives target-based opportunities to the marketers and growth to their business.

Market segmentation can help you understand your target customers and convert them into loyal customers with more personalized experiences. Market segmentation can be classified into demographical, geographic, psychographic, and behavioral.

Why is Customer Segmentation Important

Customer segmentation is the best method to target the audience. Companies knew that it was the most effective way to target the mass audience. Customer segmentation is the perfect method for marketers to reach the customer and provide them the best product and services according to their needs and wants. It will help marketers to get more and more customer attention with personalized services. Segmentation can help you create personalized marketing messages and make new products according to the customer’s needs.

Segmentation also helps the company to segregate the existing customer and new customers. It also helps in the improvement of products and services. Companies get higher revenues through market segmentation. With proper market research, companies can gain higher revenue with low expenditure. Customers want a 1:1 approach from the brand. That helps in getting more loyal customers. It increases the click-through rate and conversion rate as companies can craft personalized messages or emails by knowing their priorities through segmentation.

Customer segmentation improves brand strategy and gives a better distribution strategy to the companies for increasing customer retention.

Now here are the ten statistics that show you how customers’ segmentation is powerful.

12 Customer Segmentation Statistics that Marketers Need to Know in 2021

1. Email campaigns: — Market segmentation in e-commerce empowers email campaigns. As we know, dividing customers into groups and sub-group makes it easier to target efficient customers. Segmentation helps the marketers to send targeted or customize emails or messages to the specific customer. This will give customers 1:1 approach satisfaction. It increases the CTR by 50% more than non-segmentation data. This will give the company loyal customers. This will give a better customer experience.

2. Gives more returns on sales: — Market segmentation generates more returns on sales. With segmentation, you can plan new offers, promotional messages that increase the customer’s retention. By knowing the needs of customers, the company can provide the services and products according to that. When you study the customer’s behavior, you will learn about customers’ past pattern behavior for offers. This will also help you to make the right pricing for the right customers. In a report, we see a 3–5% increase in return.

3. Discover new market opportunities: — Market segmentation helps a company to discover new opportunities. It also helps a company to grow faster. By segmentation, companies will be able to know the markets that they have not gone to. It gives new opportunities to explore new areas where customers are interested in or need. Segmentation also shows you the existing customers and new target customers. Newmarket opportunities involve the customers that the brand is not aware of. For example, a retail company making products only for men can try their market in making the same product for women.

4. Know existing and new customers: Segmentation divides the customers into groups and sub-group with the same characteristics. It helps the company know more about existing customers and looks for new customers of the same characteristics. Thus, it gives the company loyal customers as well as potential customers for the product or services. Segmentation also helps in knowing the problems faced by the existing customers and new customers.

5. Customers like personalized experience: — Segmentation makes companies understand their customers well. It helps the companies to create personalized emails, messages, promotion messages that gain customer’s attention. Customers like the 1:1 approach. Customers like to buy from the brand, which sends personalized promotional messages. A survey shows that 90% of customers responded to the personalized messages from the company.

6. Grow your business: — Segmentation plays an important role in e-commerce. It helps the brand to grow faster and efficiently. It also helps your company to tailor-made the content of the company’s website. In e-commerce or in retails websites, content is created according to the demands or needs of customers. It gives your company higher growth by making changes in content according to a different customer.

7. Customer retention: — Getting more and more customers for any company is important. To get the customer’s attention, segmentation plays a great role. It increases customer retention. Customer segmentation allows companies to provide specific products or services to their customers. With segmentation, marketers provide specific services to specific customers to trust the brand and become its loyal customer.

8. Drive more purchases: — Personalized emails and messages play an important role in getting more customers’ attention. It gains customer’s loyalty and drives more purchases from customers. As customers get attention from the company, they build trust for the brand. Therefore, personalization can engage more customers and increase purchases.

9. Increases revenue and reaches goal: — The main purpose of any marketing strategy is to achieve lower expenses and higher revenue. Every business wants to grow with great revenue. By segmenting customers into groups and sub-groups, it becomes easier for marketers to target the audience. Segmentation divides the customers that leads to getting customers easier, and reaches its goal speedily. It also increases ROI through emails and other platforms.

10. Improves customer services: — Segmentation improves customer-company bond. It helps the company make better strategies to provide the best services to customers and make strong customer support. It helps the company to understand the valuable customer. By understanding the characteristics of different customers, you can solve their problems. Customer feedback is very important as it makes companies know about the customer’s experience. Customer’s review and feedback can affect the other users. It can help the company to gain new customers.

11. Motivate market competitiveness: — Market segmentation motivates market competitiveness. Companies understand the customer’s needs and wants by dividing their customers into groups or sub-groups. By focusing on a specific group of customers, companies provide better products and services, which leads to competitiveness in the market.

12. Strong communication: — Customer segmentation improves company-customer communication. Segmentation separates customers into groups that help companies to connect to their customers more efficiently. The company sends personalized emails, messages, etc., to their customers that makes their communication strong. Customers always like the 1:1 approach as it shows the interest of the company in customers.\

Market segmentation needs planning, research, and data collection that helps marketers create or develop the best and most efficient strategy to know their customers. In addition, it helps marketers to use market resources effectively. Companies like to use all the resources with less expenditure, earn their target goal, and receive great revenues.


Customer segmentation is the best marketing strategy in e-commerce for getting a boost to your business. It is the most sustainable, developing method in marketing. It increases the value of your brand and makes it more profitable for the company. It generates leads, a higher conversion rate, increases purchases, develops target-based messages, and attracts customers with higher retention. Customer segmentation drives more and more business to the company. It is the well-defined and most profitable method of getting target-based customers. It generates the most profitable leads.

Customer segmentation provides the right products and services to the right customer. It is a customer-based method or strategy. Segmentation helps in boosting the growth of any company.

Guest Post By Shivani Goyal

Shivani is a content writer at NotifyVisitors. She writes SEO articles, blogs, and guest posts for businesses to improve website ranking on SERP. She follows a balanced approach to the quality of content and its marketing.


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