With today’s world getting increasingly competitive, businesses have to ensure an outstanding user experience. The best way to ensure it is by tailoring your marketing communications to each user. This is where segmentation came into the picture. Go through our segmentation statistics for 2023 to know how effective it has been in conquering the market.
But before that, let’s get into the basics.
Click here to know What is Segmentation?
What is the Importance of Segmentation Statistics?
Segmentation is one of the few things that can lower risks while increasing returns when it comes to marketing your business. That’s why many businesses strongly believe in incorporating segmentation into their strategy.
Segmentation can help you target your consumers better with personalized marketing promotions, come up with sales strategies to increase the conversions from each segment, and create new products that address the specific needs of specific segments.
You need not believe our words blindly. Only “Seeing is Believing”. So, here is our collection of segmentation statistics for 2023. They’ll show you how customer segmentation has enabled real-life businesses to enjoy amazing results.
Segmentation Statistics for 2023
Here are several useful segmentation statistics for 2023
listed under 11 headlines.
1. General Segmentation Statistics
A survey with 1000 participants found that 80% of audiences tend to do business with a brand that personalizes their experience with it. That is why it is important to segment your audience to send them tailored marketing communications.
Marketers these days come up with content for multiple consumers segments. The most common number of segments they create is three. However, only 4% of marketers segment with multiple types of data, and 42% of them don’t segment at all.
2. Segmentation Statistics Related to Email
A study by Hubspot revealed that 30% of the marketers who participated in it used market segmentation techniques to improve email engagement. Segmented campaigns had 14.31% higher open rates and saw 101% more clicks than non-segmented campaigns.
Email marketers who segmented their audience before campaigning stated that the revenue generated increased to up to 760%. Targeted and segmented emails bring in 58% of all revenue.
3. Segmentation Statistics Related to ROI
With the majority of people preferring highly personalized communications from the brand, segmented, triggered, and targeted campaigns bring in 77% of marketing ROI. A retailer from Europe reported that segmentation brought in a 3 to 5% increase in returns on promoted sales.
4. Segmentation Facts for Better Understanding of Customers
Segmentation makes firms 60% more likely to understand customers’ challenges and concerns and 130% more likely to know their intentions. Segmenting based on personas provides 90% of firms with better knowledge about their audience. And 82% of firms using personas have come up with an improved value proposition.
5. Statistics Related to Impulse Buying
In a study, 49% of participants stated that they purchased something on impulse as it was presented to them with a personalized message. This reveals that segmenting users and tailoring communications excellently can facilitate favorable purchase decisions. Though this study dates a few years back its implication still holds.
You should prioritize segmenting your website and email audiences as these are the foremost ranking channels when it comes to impulse buying.
6. Segmentation Statistics Related to Lead Generation
Companies that surpass their goals set for lead and revenue generation are those that segment their audience. Reports say that such firms are 2.3 times more likely to study their buyers’ intent and 1.6 times more likely to understand their challenges and fears than their counterparts.
7. Segmentation Stats Related to Website Construction
Segmentation enabled companies to build websites that are two to five times more successful than those that provide generic content for their entire audience. This means having sites that allow different categories to self-select the content that suits them the most. For instance, a clothing brand offering separate pages for kids’, ladies’, and gents’ clothing.
If you choose to personalize a single digital channel, let it be your website. For, 28% of the audience agree that a business’s website is the most vital medium for personalization and 49% say that it is one of the two main mediums for personalization.
8. Segmentation Stats Related to Customer Acquisition Expenses
With smarter segmentation and the creation of personas, businesses can lower the expenses related to acquiring those customers. MetLife, an insurance giant, used complex segmentation techniques to group its audience based on their behaviors and attitudes.
This resulted in the lowest need for one-on-one attention from their sales team. This has given them the confidence to set their annual savings target to $800 million.
9. Segmentation Stats Related to Finding Prospects
Segmentation can also help you reach prospects that look like your current best customers. For instance, the Royal Canadian Mint, a firm that manufactures and dispenses Canada’s coins and trades collectible coins, tapped into this potential of segmentation.
It used its entire customer data to create a persona that constituted its highest-value customers. They then used this info to develop online and print messages and tweak their marketing campaigns. This helped them gain 140,000 prospects in a single campaign.
10. Gaining Access to New Markets
Segmentation also allows businesses to identify new markets. This is done by helping you understand your current customers better. For, this facilitates eliminating reaching out to an irrelevant audience in vain. For instance, Canon, the renowned Camera manufacturing firm, whose products were mainly used by professionals, decided to expand its reach.
Segmentation revealed that kids made ideal candidates for selling cameras as their parents didn’t allow them to use their smartphone cameras. So, Canon came up with low-end digital cameras to address the need of this newly found audience. Within a year, this acquired them a 40% share in the low-end digital camera market.
11. Segmentaton Statistics Related to Mobile Apps
31% of millennials, 27% of Gen X, and 19% of Baby Boomers list mobile apps in their top two most vital mediums for personalization. So, brands that have apps should consider segmenting their mobile app audience and catering to the specific needs of each segment. However, apps shouldn’t operate in a silo. There should be coordination between a brand’s mobile app and its website. For, 63% of consumers expect this.
Segmentation is one of the growing digital marketing trends to help businesses beat the competition and make profits. The growth of sources of consumer data, touchpoints for customer interaction, and the need for almost real-time updates make user segmentation a challenging thing to achieve. Brands can effectively employ dynamic and flexible segmentation by creating a complete profile view of each customer from across different marketing channels. A market segmentation tool like NotifyVisitors can help you in this regard.