Segmentation
Definition
The practice of dividing your customers or audience into distinct groups based on shared characteristics, behaviours, or needs, then tailoring messaging, products, or experiences to each group.
Why it matters
Generic messaging converts poorly. Segmented messaging converts at 2 to 5 times the rate because it speaks directly to a specific person's situation. The smaller and more precise the segment, the more relevant and effective the communication.
Example
Rather than sending the same email to all 12,000 subscribers, a founder creates three segments: new subscribers, active buyers, and lapsed buyers. Each receives a different email with different offers. Revenue from the campaign triples compared to a broadcast.
Related terms
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