Market segmentation is the process of grouping a market of current customers or prospects into groups, or segments, based on different traits. The segments that are developed are composed of consumers or prospects who will respond very similar to cross channel marketing campaigns and who share characteristics such as similar spend behaviors, web activities and responsiveness, or locations.
Why is market segmentation important for marketers? Campaign segmentation allows marketers to customize creative and dynamic content to tailor fit these segmentation groups.
Marketing Teams can also use segmentation to prioritize their target groups. If segmentation displays marketing that some consumers would be more likely to buy or connect to a brand/product than others, marketers can refine their strategies towards overall improvement in their execution of their organization’s marketing dollars.