Why are Marketing Teams Obsessed with Customer Segmentation for Market Research?

Michael Finnigan
May 31, 2021

Marketing teams understand that they need to evaluate the behavior and needs of their customers in order to provide optimal solutions. However, it is also important to understand that the target audience within any industry has different preferences. Therefore, it is essential to implement different strategies for different audiences. This will bring efficiency into marketing campaigns, and you can build a better relationship with your customers.

Customer segmentation is a marketing technique that supports your efforts to understand and target a specific audience. Through this technique, you will save money and reach the right customers with the right message. In other words, customer segmentation is a marketing tool to ensure that you target the exact audience. Before implementing the marketing strategies and techniques, you need to analyze your customers and understand their needs. Customer segmentation will allow you to efficiently perform these tasks.

Benefits of Customer Segmentation

Customer segmentation will help you categorize your target audience into different groups such as age, gender, or preferences. When you have different segments of your potential customers, you can create effective marketing campaigns and target a specific audience. Below, you will understand why customer segmentation is becoming popular:

1. Increases Focus

With different groups, marketing teams can focus on segments they want to target. This means they can promote their product to a specific audience increasing the success rate of their campaigns. In short, customer segmentation will make your marketing campaigns specific and productive.

2. Better Solutions

Dividing your customers into groups can help you satisfy their individual needs and offer numerous incentives and bundles. You can run different campaigns and activities according to their preferences and wants. When you understand your customers’ needs and their behavior, you can provide specific solutions to their problems. By implementing customer segmentation, you can build trust between your business and each segment.

3. Market Competitiveness

You can increase your marketing competitiveness by focusing on each segment. This will eventually lead to a higher return on investment. If you want to market your product to a segment, you need to understand their needs. Once you learn about that group of prospects, you can market your product to them.

4. Market Expansion

Customer segmentation based on geographical locations can provide immediate expansion. When you understand the potential customers in a new location, you can expand your business by providing them solutions to their problems.

For instance, a new location has different challenges such as weather and political issues. You can modify your product according to that specific location’s needs. Furthermore, you can create your marketing technique according to that specific audience. This technique will eventually generate more interest as the product is according to the needs of the target audience in that location.


Customer segmentation will also help you manage customer experiences. Dividing your customers into different groups based on their needs will allow you to offer exact solutions to each group. You can also promote your products with different strategies specific to each type of customer needs. Therefore, you can make your customer care, and marketing teams focused, targeted, and organized.