What are the best segmentation variables for your marketing objectives?

1 Demographic variables

Demographic variables are the basic attributes of your customers or prospects, such as age, gender, income, education, occupation, marital status, family size, and location. Demographic segmentation is easy to collect and apply, and it can help you understand the general profile and preferences of your segments. For example, if you want to increase your brand awareness among young urban professionals, you can use demographic variables to identify and reach this segment through relevant channels and messages.

2 Psychographic variables

Psychographic variables are the psychological and lifestyle factors that influence your customers or prospects, such as personality, values, attitudes, interests, hobbies, opinions, and motivations. Psychographic segmentation can help you understand the deeper reasons why your segments buy or use your products or services, and how they perceive your brand. For example, if you want to enhance your customer loyalty and retention, you can use psychographic variables to create personalized offers and experiences that resonate with your segments' values and needs.

3 Behavioral variables

Behavioral variables are the actions and responses of your customers or prospects, such as purchase frequency, purchase amount, product usage, loyalty, satisfaction, benefits sought, and response to marketing stimuli. Behavioral segmentation can help you measure and optimize the performance and profitability of your segments, and identify opportunities for cross-selling, up-selling, or retention. For example, if you want to increase your sales and revenue, you can use behavioral variables to segment your customers based on their purchase behavior and offer them incentives or recommendations that match their needs and expectations.

4 Geographic variables

Geographic variables are the physical locations of your customers or prospects, such as country, region, state, city, zip code, climate, and population density. Geographic segmentation can help you adapt your marketing strategies to the local conditions and preferences of your segments, and take advantage of regional opportunities or trends. For example, if you want to expand your market share in a new or existing market, you can use geographic variables to segment your customers based on their location and offer them products or services that suit their environmental and cultural factors.

5 How to choose the best segmentation variables

Choosing the best segmentation variables for your marketing objectives is not an easy task. It depends on your business goals, target market, product or service, data availability and quality, and resources and capabilities. Generally speaking, you should combine different types of variables to create a comprehensive and accurate picture of your segments. Moreover, the variables should be relevant, measurable, accessible, and actionable for your marketing strategies. Additionally, they should reflect the benefits and value propositions of your product or service. Lastly, they should be able to help you differentiate your segments from competitors and be stable and consistent over time.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?