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4 Effective Ways to Profit from Market Segmentation

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<![CDATA[As an online shop owner, you will probably know the most important sources for collecting information about your target market. But once you have this data, how can you profit from it? How can you actually manipulate data and obtain valuable insights from it? How can you grow your Shopify or Woocommerce store with market data?
This article discusses five highly effective ways of working with market data in order to boost the efficiency of your segmentation efforts. You will learn to generate a data-backed strategy to grow your revenues and profits. Read on and grow your online shop with ease.

Your Online Store Will Benefit from Well-Defined Personas

Hubspot offers a great definition of marketing (or buyer) personas:
[mk_blockquote style=”quote-style” font_family=”none” text_size=”12″ align=”left”]Buyer personas (sometimes referred to as marketing personas) are fictional, generalized representations of your ideal customers. Personas help us all – in marketing, sales, product, and services – internalize the ideal customer we’re trying to attract, and relate to our customers as real humans.[/mk_blockquote]
While buyer personas are usually created before you start your online campaigns, they should be regularly revised and optimized based on the data you systematically collect from your audience. If you want to dive deeper into the details of this subject, here is a comprehensive guide on how to create highly effective buyer personas.

Use Your Buyer Personas to Create a Solid Content Calendar

Once you have your marketing personas well defined and active in all your online campaigns, it is time to start benefiting from them. One of the most important applications of personas is to personalize your online shop’s customer communication. In this subtopic, you will learn why it is important to create an editorial calendar.
Building an editorial calendar is helpful not only for visualizing which posts you are sharing on each social network. It also helps to see if they are coherent with the brand you want to show to your market segments. Nonetheless, individual entrepreneurs and small businesses often ignore this tool using the excuse that it “demands too much time.” Evidently, managing one more spreadsheet requires a bit more effort, but the benefits of having an editorial calendar quickly outweigh its costs.

Example of Editorial Calendar for Social Media
Example of Editorial Calendar. Source: CoSchedule

Once the number of posts in social media starts increasing, it becomes increasingly difficult to keep track of your posts. You want to check whether they are well aligned with the message each of your target segments should receive. A content calendar helps you visualize all the posts of the week or of the month, giving you an overview of how your social media channels look like. You can then identify which posts attracted the highest level of engagement. This enables you to focus on creating or sharing more content related to their subjects.

Use the Data to Create Highly Targeted Online Advertising Campaigns

One of the best ways to use the information related to your target segments is to optimize your online campaigns. If you have AdWords or Facebook ads running, you know what I am talking about. The optimization process can be quite daunting if you don’t have a clear picture of your target market, and you can never be sure whether you actually made an improvement or if the numbers changed simply due to luck.
In order to avoid this guessing behavior, below you can find a quick, practical guide on how to create a well-defined audience on Facebook, as well as several tips for improving your AdWords campaigns.

Creating a Custom Audience For Your Ads on Facebook

Facebook uses dozens of personal data points to create one of the most sophisticated online advertising platforms. Their tool offers you an almost infinite number of combinations for creating highly targeted marketing campaigns. However, the huge amount of options also has its caveats: it demands much more time and effort to learn how to use the tool and how to profit from its power.
But what if you could target your ads to a specific list of contacts you already have? What if you could use this list to expand the target market and obtain new, highly qualified leads? The good news is: Facebook offers you an intuitive way to include the information you already have about your customers and build similar audiences on Facebook. This is where the power of market segmentation and the possibilities for customization of your campaign can establish high synergy levels.
Here is what the process of creating a custom audience looks like. As you can see, there are several fields you can use as identifiers for your customer data. By providing information such as the First Name, the Email or the Facebook Page ID, you give Facebook very detailed data to work with. The platform will then go through their user database and find the matches for the information you provided.
Process of Creating Custom Audiences in Facebook Ads
Now imagine combining this extremely powerful tool with your segmentation profiles. You can create a different spreadsheet for each target group, and Facebook will take care of not only creating a custom audience but also expanding it through its Lookalike functionality. To help you create well-formatted and Facebook-friendly customer spreadsheets, Facebook offers a best-practices guide on this link.

Grow your Online Shop with Google AdWords

AdWords is another platform that offers you a wide range of customization possibilities. While it does not offer as much targeting data on your customers as Facebook, the power of this tool lies in its keyword functionalities. In contrast to the push characteristics of Facebook Ads, search ads on Adwords own a pull marketing characteristics. In effect, this medium helps you to be in touch with people once they are already looking for something specific.
In order to get the highest levels of engagement with your ads, the keywords you target should be the same as the keywords searched by your audience. While sets of few keywords are good to approach large markets, long-tail keywords are the way to go if you want to target highly specific audiences. The tool Keyword Planner offers you three possibilities:

  • Search for new keywords using a phrase related to your product.
  • Get the search volume and possible trends for a set of keywords.
  • Multiply the list of keywords by adding new insights.

The first one is shown below and is the best option for you to find good keywords based on the characteristics of each market segment you are targeting. With the set of keywords ready, you can look for search volumes and even new ideas to broaden the target audience of your ads.
Example of Functionality of Keyword Planner in AdWords

Create Customized Email Marketing Automation Routines

Email marketing automation is a term that still scares many people due to its dark, complex past. Previously, you would have to know a lot about coding to tackle this dimension of online marketing, but now you can do it very intuitively from the dashboard of any marketing automation platform.
In simple terms, email marketing automation is the process of delivering a customized series of emails based on several variables such as time and the actions of your user. You can, for example, create different routines for users who sign up for your campaign on different landing pages. You can also create campaigns based on whether they opened or interacted with your last email.
At its core, email marketing automation is a forecasting effort of identifying what is the best sequence of emails you should send your user in order to increase conversion and sales levels. To dive deeper into the topic, check this complete guide provided by Kissmetrics about creating effective automated email campaigns.

Offer Customized Help and Provide FAQs to your Online Shop’s Products

These are more qualitative benefits of having well-defined market segments for your Shopify or Woocommerce online shop. First of all, if you know what your customers look like, you are able to identify what they are looking for in your product or service. Imagine you run a Shopify store to sell custom t-shirts. A better understanding of your audience will allow you to create different marketing messages that target their very specific needs. You will be able to create shirts that are more compelling to them as you can incorporate elements of their cultural codes. Some users might favor the design of your online shop, others might demand specific shirts, and others might love the option to choose from predefined designs for their shirts.
Finally, being able to offer customized help is another great benefit of segmentation. The first contribution of well-defined audiences is to help you in identifying potential questions of your customers and proactively answering them on your website. This will not only reduce your future effort in managing several customers simultaneously but also create a positive impression on your visitors. The second contribution is a better understanding of what your customer is looking for when it asks you a question. Individual entrepreneurs and small business hardly ever have different departments to deal with different customers, so being able to segment them into different categories is a great way of reducing effort in customer management.]]>

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    Facebook custom audiences look great. Will explore this!

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