Anyone in financial marketing likely knows that they should be targeting specific audiences, rather than just everyone. But that is a lot easier said than done, especially if you’re relatively new to the world of financial marketing.
We’ve put together a simple guide to segmentation, to help you understand who you should be targeting and how to implement it. So you can make sure you find success with your marketing campaigns.
What is segmentation?
Put simply, segmentation is the process of dividing a larger audience into smaller and more specific groups. Each segment should have the following traits; easy to measure, accessible, high-profit potential, easily identifiable and distinct from other groups.
How do you segment your audience?
There is no set way for a financial marketer to divide an audience, but some approaches are more popular than others. The most common ways to segment an audience are; demographics such as gender and age, geographic, economic, behaviour and desires and needs. It can be tempting to choose just one of those categories on which to base your target segment. However, it can actually be far more effective to combine categories to create a distinct ‘buyer persona’.
What exactly is the segmentation process?
It’s worth pointing out straight away, that segmentation is not a quick process and should never be rushed no matter how keen you are to crack on with your marketing strategy. Correct segmentation is essential in long-term success, so you must take the time to get it right. You should start by analysing your existing client base.
Are there any common traits that you can use to group them together?
Once you have done that, you can then take a look at any segments where you don’t have any clients, and work out why that might be the case. This second step is particularly important if you’re considering expanding your client base. As you start segmentation, you may also find it useful to consider the following; do you have a clear definition of your market, are you using the best possible data, do you have specific details about items/services, who buys them and why.
Are there any other tips for segmentation success?
Now you’ve got the basics of segmentation down, you’ll want to make sure that your efforts aren’t wasted. Here are a few more tips to help you get the best results;
- Consider your specific internal business strengths and focus on them
- Find out the needs, wants and issues of your clients and see if you can use them to segment your wider market
- Understand that you won’t be able to please everyone, and so prioritise segments to focus your attention on
- Try to use the most relevant and up to date information and data that you can
What should you do after segmentation?
Segmentation should work to create more focus in your financial marketing. It’s so important to make sure that you continue to check up on your segments and alter them if necessary. Your groups will shift as your business naturally changes, make sure you keep your marketing up to date or all your segmentation to continue to grow your audience and get results.
