Market segmentation is not only about demographics.

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Correctly segmenting your audience and targeting the right customers is key in marketing. Go after the wrong group and you will blow your budget in no time.

Segmentation used to be about demographics. All companies defined their customer avatar in terms of age, gender, location etc. This still works for mass outreach, but the internet has made it possible to employ a different strategy: psychographic targeting.

Psychographic targeting means segmenting potential customers based on their likes, beliefs and dreams. It moves past demographics, which makes a lot of sense. People that share the same lifestyle and priorities can be in completely different demographic groups.

This type of targeting offers a big opportunity. Instead of having to launch your message at a large audience, you can target a niche group based on psychographics that align with your product.

Moreover, it is (still) cheap compared to traditional advertising. A video view will only cost cents. Contrast that with the cost of a TV commercial. In addition, it is not the “spray and pray” approach of TV because viewers of the video are highly targeted.

Never in history has it been easier to start communicating with the right audience. Take advantage of the possibilities, if you target the right people they will love hearing from you.

About the author

Ivo Oltmans
By Ivo Oltmans

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About

My name is Ivo. In the last 10+ years I have worked on various SaaS products in marketing, sales and business development roles.

Want ideas to grow your company? I love meeting new people and chatting about business. My gmail handle is i.oltmans.

When in doubt whether or not to contact me, you should :-)