Mancilla Escobar Moisés Elías 4RM6 MKT DIRECTA

What are the 4 types of market segmentations? Explain and give example for each type
of market segmentation.
Market segmentation is an increasingly important part of a strong marketing strategy
and can make all the difference for companies in competitive market landscapes, such
as e-commerce.
When up against a range of online competitors, effective communication is the best way
to differentiate your business. Market segmentation offers an opportunity to pinpoint
exactly what messaging will drive your customers to make a purchase.
The 4 basic types of market segmentation are:
1. Demographic
2. Psychographic
3. Geographic
4. Behavioral
1. Demographic segmentation: The who
For example. demographic segmentation might target potential customers based on their
income, so your marketing budget isn’t wasted directing your messaging at people who
likely can’t afford your product.
Luxury goods manufacturer Montblanc worked with Yieldify to present a selection of
offers across their website. One sought to raise conversions using a Father’s Day deal
that offered a free gift to those spending over £200 – an amount that acknowledged the
spending expectations of Montblanc’s target audience and saw a +118% uplift in
conversions for those targeted.
Another offer was aimed specifically at corporate gift buyers a market segment that
Montblanc particularly appeals to and resulted in a +30% uplift for that segment.
Segmentation isn’t just about your business reaching customers more effectively it’s
also about those customers seeing messaging that is more relevant to them!
2. Psychographic segmentation: The why
Compared to demographic segmentation, this can be a harder set to identify. Good
research is vital and, when done well, psychographic segmentation can allow for
incredibly effective marketing that consumers will feel speaks to them on a much more
personal level.
In our experience working with luxury resort business Omni Hotels & Resorts, for
example, were aware that a big sector of the company’s target audience was always
keen to get the very best price they could. By targeting a notification campaign
specifically towards comparison shoppers, Omni Hotels & Resorts achieved a 39%
conversion rate uplift.
3. Geographic segmentation: The where
Mancilla Escobar Moisés Elías 4RM6 MKT DIRECTA

For example, it’s possible to group customers within a set radius of a certain location an
excellent option for marketers of live events looking to reach local audiences. Being
aware of your customers’ location allows for all sorts of considerations when
advertising to consumers.
Using Yieldify’s tools, an online shoe store could show different products depending on
where the visiting customer was based: wellington boots for someone in the
countryside, pavement-friendly trainers for a city-dweller, strappy sandals to resort
visitors, and so on!
In large nations like the United States, customers could be presented with options that
match with local weather patterns. Geographical identification is an important part
of seasonal segmentation, which allows businesses to market season-appropriate
products to customers.
Some recent examples of proper geographic segmentation came from the response by e-
commerce businesses to the coronavirus pandemic. During lockdown stages, many
businesses shifted their focus to local communities to highlight how their services could
still be accessed online.
Conversely, as public spaces began to open up again purely e-commerce brands had to
shift their marketing plans to maintain the levels of business, they had seen over the
lockdown period.
4. Behavioral segmentation: The how
For example, we can distinguish between a first-time visitor and someone who’s already
been on your site multiple times but haven’t purchased. Based on this behavioral data,
we can tailor our messaging accordingly:
First time visitor: Hey, learn about our latest collection!
Returning visitor: Join our loyalty program and start saving!
Working with online wine club Vinomofo, we used behavioral segmentation to target
three distinct audiences: new visitors, returning visitors, and returning clients.
One of the best examples of this type of segmentation is showing new visitors a $15
incentive in exchange for joining the community. Returning visitors who had already
subscribed but have not redeemed their coupon yet were reminded on their first order
incentive. Whereas returning customers saw a campaign about Vinomofo’s premium
services.
This targeted approach focused on purchasing habits reached a 34.02% conversion rate
uplift with new and 29.24% CR uplift with returning visitors!
Mancilla Escobar Moisés Elías 4RM6 MKT DIRECTA