Every product needs a target audience. Market segmentation identifies subsets of a market based on demographics, needs, priorities, common interests, or other psychographic or behavioral criteria to better understand and communicate with that audience.
Segmentation can be as simple as splitting your potential market into age ranges or as complex as dividing your audience based on subtle behaviors, values, or beliefs.
To be truly useful, segmentation should enable you to target core groups of your potential customers with precision. Practically speaking, segmentation enables you to:
- Boost demand with messaging that resonates more with your market
- Grow your customer base by understanding what drives purchase behavior
- Increase revenue and profitability by discovering which customers will pay a premium for your product