The concept of customer segmentation is dividing a company’s customer base into parts to target the right audience for marketing purposes in the right way with the right message.
It also allows you to deliberately exclude from your marketing those customer groups who may not be interested in the message because they do not belong to the desired customer segment.
The Economic Research Institute aptly defines customer segmentation: “The objectives of strategic segmentation include identifying different customer groups with distinct needs and creating new business opportunities.”
In digital marketing, customers can be very precisely divided into desired customer segments (at least a pro-level digital advertising professional can make these very precise divisions, novices and amateurs may not be able to).
Let’s take the example of a house factory that manufactures high-end villas and smaller and more affordable cottages and warehouses/carports. The example below shows how businesses can create different customer segments, for example, through digital or internet advertising.
This will help create a precise customer segment for each key target group and ensure that the right customer is targeted with the right message when marketing. This ultimately means more page visitors to your business website and more contacts and sales from these.
Building the right customer segments is very crucial at this point. Advertising, as well as the media budget for advertising, can be very costly. Many of these funds will go to waste if the customer segments aren’t well defined. A well-built customer segment is, therefore, one of the most important aspects of advertising.
A customer segment can be created within a company in one of the ways mentioned above. This can be followed by an introduction to the different digital channels and the opportunities they bring.
In social media, for example, a customer segment can be created using these definitions:
In Google, a customer segment can be created using, for example, these criteria:
As noted above, customer segmentation can be used more broadly with social media. Facebook, Instagram, and LinkedIn know precisely our online behavior and our gender and contact network, and much more about our interest segments.
Do you want to start advertising your business on Google or maximize your current advertising?
In most of the examples above, the target groups are B2C. Marketing to consumers is more traditional and therefore easier, as there have been more ways to do this in the past. So you can find your B2C customers very precisely on virtually all social media channels, such as Facebook, Instagram, and LinkedIn.
Few digital marketers have extensive ways of finding B2B customers. In reality, you can also find your B2B customers with really precise criteria on all social media channels. However, this requires a very high level of expertise and often the use of expensive software or external databases that individual advertisers can rarely afford.
At Kubla, for example, we invest significant sums each year in these third-party database licenses to guarantee our clients the best possible targeting for their customer segments.
For example, sell a valuable ERP system to a business, and your business-defined customer segment includes these criteria. Your customers will be discoverable on Facebook, Instagram, and LinkedIn.
In other words, your company’s customer segment can also be found very precisely on the B2B side, regardless of the social media channel. In addition to the above list, all the criteria mentioned above can also be used, which are also commonly used in B2C marketing.
Let’s make an example calculation for each channel, showing how much it costs to advertise on each channel.
Google Ads advertising is designed to direct buying customers directly to your website when they search on Google’s search engine. Generally, you get customers to your website by paying one dollar for each customer.
However, there is a different price for each keyword on Google, and most commonly, the price of a page visitor is on either side of a dollar, so let’s use this as an example. However, in some industries, a page visitor can cost up to $10, but prices are generally around $1.
The aim of social media is usually to increase awareness and ultimately send traffic to the site. The example below shows how much you need to spend on paid advertising on Facebook, Instagram, and LinkedIn per media budget to find your 10,000 most potential customers.
With professional advertising, your company can reach your customer segment effectively and ensure that every dollar goes directly to the best target group of your choice.
We will be happy to help you identify the most potential customer segment for your business. Our company uses information from your company to help you define your target customer segment, and we can also use this information to directly identify the most likely customer segment. We have also run thousands of campaigns, and some of these campaigns are probably also for companies with a similar customer segment.
So feel free to contact us to define a customer segment for digital channels as well. With Kubla’s expertise, you can get your advertising dollars where they pay off and drive traffic to your website!
Contact us and we will contact you within the next working day and:
We can also arrange a short phone conference where we will discuss marketing together!