Why Data Segmentation Is Crucial for Marketing

Only data that can be used is valuable. Collecting data just for the sake of collecting data just doesn't cut it when it comes to marketing. It's important to design an elegant, intuitive system that breaks down data into bites that are easily digested and applied. What does this look like? Good data looks like carefully chosen categories that allow information to be stored and segmented in relevant ways. Segmenting large volumes of data into smaller groups based on certain keywords, triggers or characteristics creates the right environment for comparing results or observing patterns.

Why Data Segmentation Is Crucial in the World of Big Data
Your target audience is everything when you're trying to get eyes on your product, company or service. Segmentation's value is most noticeable when it comes to marketing initiatives or sales targets. Segmented data can be used to compare the performances of sales campaigns or to gain insights regarding the habits, desires and motivations of your target demographic. Data can be pulled from social media, analytics reports, traffic reports, email campaigns, sales records, and more.

Knowing how many people clicked on an ad or followed a link to make a purchase isn't enough if you're trying to build a brand. You need a big data processing platform that can help you use small details to create a customer profile and get a full picture of how your brand is viewed. Data that is pulled in from different sources can take into consideration gender, age, political views, religious affiliations, hobbies, habits and preferences of customers and potential customers.

How to Segment Data Properly
Figuring out how to segment data properly all comes down to pinning down the questions that you'd like your data to answer. This can be an overwhelming thing to consider when you think about how much information is stored in a block of data. Here are some key questions to ask of data:

  • Which times of day receive the highest rates for purchases or interactions?
  • How are people navigating through a website, portal or other platform?
  • Which keywords are attracting the most engagement?
  • Are things like coupons, free shipping or other promotions creating increases in sales or interactions?

No company has as close to perfecting the art of segmenting data like Netflix. The streaming platform uses its ecosystem of data to create a profile of every individual user based on the shows they like and the performers they tend to follow. These profiles are then used to decide which shows and programs to create or renew with limited financial risk.

Benefits for Both Big and Small Businesses
Most people think of large corporations and global brands when they think of savvy marketing tactics. In fact, big data is the central marketing tactic of large companies like Alibaba. There simply is no way to reach out to customers effectively without creating segmented markets and tailoring ads and experiences if you're serving thousands or millions of different people. The reality is that big things are also happening with small businesses when it comes to using data to gain customers. In fact, segmented data may be more valuable to small enterprises in some ways because concentrating on a local demographic requires more specific marketing targets. Small businesses often need to segment data to figure out how to attract attention in a specific geographical area. Even small businesses that are national or international need to segment data for the simple reason that those enterprises need to maximize every marketing dollar that's spent. Spending money on broad, general marketing campaigns simply isn't smart for an enterprise with a limited budget. Using big data processing to create targeted, location-based marketing campaigns that are more likely to have high conversion rates is the only way that small businesses can stay competitive.

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