Market Segmentation | DirectiveGroup

Market Segmentation

Slice and Dice Data To Discover High-Value Opportunities

Market segmentation is an often under-utilized technique that allows marketers to group similar prospects or existing customers together, for the purpose of being able to develop greater personalization in marketing methods. If you think about a continuum with personal marketing (one-to-one) marketing on one end and mass marketing on the other end, market segmentation allows you to move closer to a more personal marketing approach, and away from a mass marketing approach. The more tightly defined your segments, the closer to one-to-one marketing you will be.

In many cases, you can group people through statistical techniques that look for commonalities and differences between individuals. However, it is always possible to manually segment and to begin testing based on your experience with differences that matter in your business or your industry. For instance, segments may be established by purchase amounts or frequency, characteristics of the individuals, observable behaviors, etc. Finally, one exciting trend is the use of marketing artificial intelligence to move toward mass one-to-one marketing, which of course would be the most effective method of segmentation.

Ways Your Business Will Benefit from Market Segmentation

There are many ways businesses benefit from using a segmentation approach when marketing to prospective, existing and previous clients. Some of these benefits include:

  • Higher ROI for your marketing program spend, basically because you are targeting the right people through the right method and the right time with the right message, all of which become more possible with segmentation.
  • Prospects and customers will come to believe you have a better understanding of them and their needs, which can lead to more spend and greater loyalty.
  • Increased revenue per customer, since segmentation can be focused on up-sell, cross-sell or other ways customers go from an introductory program to greater purchases at your company.
  • Greater market share for specific products and services, given the specific focused attention.

Main Types of Market Segmentation


Increasingly possible in the digital realm, you may choose to segment your prospects and customers by interests, preferences, lifestyle, attitudes, and more, and from there, test different products and services, different messaging, different offers, that will create a virtuous cycle relationship. Learn More About Psychographic Segmentation


Easy to group people by observable characteristics such as gender, age, type of work, income, etc. While this is one of the most common forms of segmentation, it can be powerful if you can determine what factors are the differentiating ones between groups, and then cater to those differences. Learn More About Demographic Segmentation


Grouping by country, location in a country (state, county, zip code), degree of urbanization, are ways to group people geographically. Similar to demographic, this can still be a powerful way to group people to allow you to cater to their specific needs driven by geographical considerations. Learn More About Geographic Segmentation


Grouping prospects or customers together by how they act. For instance, if you have value-based buyers and impulse-buyers, loyal or non-loyal, consumption rate of your product or service, you may speak to them in two different ways with two different messages. Learn More About Behavioral Segmentation

Drive Innovation Through Segmentation

Market Segmentation is an essential element in any marketing strategy developed to meet your customers' needs. You can use the segmentation as a strategic tool to create new normals in your product development strategy. You can also utilize it to allocate scarce resources efficiently. Need-based segmentation can enable you to play to your strengths and create a new benchmark in serving of existing as well as new customers.

DirectiveGroup uses sophisticated segmentation techniques and artificial intelligence programs to create distinct consumer segments for your business. Our team of experts can help you develop the right segmentation approach for your business - from demographic, and socioeconomic to interest and need based segmentation - to identify your most profitable customers and to understand their unique requirements.

It is through this approach we enable our clients to target your highest-value customers’ and prospects’ immediate needs and future requirements. As a result of our strategic market segmentation services, we will build your ability to be ahead of changing marketplaces. By proactively playing to your strengths, we will drive innovation to build your sustainable competitive advantage for the long run.

Sharpen Organizational Focus and Multiply Profits

Today marketers have more options and tools than ever. The rapidly changing technology combined with constantly evolving customer/client needs leads to many challenges. Customer segmentation becomes immensely powerful when it is used as a part of a strategic process. An effective segmentation approach helps you to winnow down from an array of potential target groups to focus on the customers which you are most suited to serve. When you align your organization to focus on these target groups and craft a differentiated unique value proposition, competitors fall away because of the difficulty of emulation. This has the potential to increase your customers’ loyalty and to dramatically improve your conversion rates for new sales, so as to boost your profits significantly.

Work with us and get the best market segmentation. We engage right people and ensure that the segmentation is indeed based on the needs that drive purchase behavior of your customers. We guide you toward the specific group of target customers which you can most profitably and effectively serve.

We also make sure that all the functions, and not just the marketing department, understand your target customers and equipped adequately to meet the needs of these customers.

Get in touch with us to take your digital marketing approach to the next level by filling out our contact form or by giving us a call at 813.341.3800. Make tomorrow dramatically different from today. Call us!


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