Microsegmentation is a more advanced form of segmentation that allows for maximising the value of each customer and thus achieving better sales results. What is actually microsegmentation and microtargeting about? How to properly characterise the audience we are targeting?
What is microtargeting and microsegmentation of customers?
Microsegmentation enables to group consumers into smaller and more precise segments based on various factors. These can include for example:
- Geographic segmentation – boils down to dividing the market into geographical units (e.g. countries, cities, regions)
- Demographic segmentation – refers to the group division based on socio-economic variables (e.g. gender, age, occupation, income, education, nationality, number of family members)
- Behavioural segmentation – covers mainly customers’ needs and motivations
One of the most effective starting points for creating microsegmentation is behavioural segmentation, i.e. relating to recipient behaviour e.g. in an online store. Based on the behaviour of Internet users, it is possible to generate data on the following parameters: number of visits, number of orders, average value of orders, generated revenue. The next step involves examining correlations between the given parameters, e.g. the number of visits vs the number of orders.
After having defined microsegments, one should start customised marketing activities. Individual selection of advertising messages and microtargeting significantly increase the effectiveness of the campaign. Microsegmentation and microtargeting can be implemented by using a variety of strategies and tools. One of them is push notifications. Short messages should have an appropriate emotional load, i.e. arouse curiosity and encourage interaction. Push notifications must evoke specific impressions, therefore it is worth speaking to customers in their language.
Micromarketing vs Big Data
Internet users leave traces of their online presence at every step, which is an invaluable source of knowledge on their needs and preferences. Consumers expect immediate solutions and a well-tailored offer that every brand should provide. It all comes down to the concept of micromarketing, i.e. allocation of company resources for the benefit of consumers. Micromarketing focuses on a relatively narrow audience that should be targeted by separate marketing campaigns.
Currently, the acquisition and proper use of data is the first step to the success of any enterprise. The notion Big Data means the collection and processing of huge amounts of data that have become a very important tool in the world of marketing. In sociodemographic terms, based on a relatively small consumer base, a determinant will not be the volume of data, but the possibility of their appropriate processing. Regardless of the database size, an effective strategy of recipient activation and targeted communication is required. That is why consumer segmentation, proper targeting, and delivery of messages tailored to their preferences is so important.
What is the difference between microsegmentation and macrosegmentation?
Microsegmentation is also a term used in the IT industry, understood as a reduction in the number of users in a given segment who, for example, have access to selected advanced functions in a given environment. In turn, marketing activities distinguish two main segmentation strategies, i.e. microsegmentation and macrosegmentation. The difference between them lies in the level of detailedness. Usually, marketers first decide on defining macrosegments.
The so-called primary segmentation allows for precise determination of the reference market. In this case, it is based on publicly available data, including demographic and geographic data. Segmentation on a microscale leads to merging recipients into homogeneous groups based on available primary sources. In other words, macrosegmentation aims to distinguish the reference market and then divide it into microsegments.