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The 411 on Micro-Segmentation

The 411 on Micro-Segmentation

In traditional marketing, market segmentation splits a target audience into groups based on demographics and psychographics. Through this process of segmentation, audience members are placed into groups relevant to a particular business. However, consumer wants are becoming more specialized, and the idea of promoting a single product to the many is now only attracting a few. With business-to-consumer contact becoming more intimate through online platforms, businesses are looking for ways to segment their audience even further in a process called micro-segmentation.

So what exactly is micro-segmentation? It’s the process of splitting up a target audience by specifying interests that delve deeper than typical demographics. Customers are no longer exclusively separated by geography and age groups; they have found a voice and are using it to share their deepest and darkest secrets… well maybe not that far.

While consumers have been finding ways to tune out advertisements by avoiding commercials, changing the radio station and tossing direct mail in the trash; consumers have also been making themselves easier to reach. Social media has provided an outlet for consumers to detail their purchase behaviors and share their opinions. Consumers may think they are shutting businesses out of their lives, but really they are opening their doors and inviting them to take a seat.

With micro-segmentation, businesses can now measure the interactions with consumers on social media and place them into smaller segments. Once these micro-segments have been created, businesses can spend time engaging with each group, create relationships with group influencers and extend their brand influence. So much for the fast-forward button on TiVo.

The ‘one size fits all’ model is becoming obsolete as consumers are refining their tastes. Micro-segmentation is becoming a necessity for a social media marketing strategy and businesses are going to have to adapt to be able to continue to effectively interact with consumers. Advertising to the masses is not the viable option it once was. Consumers are simply becoming more selective. So go ahead and become a micro-believer—the future of marketing is targeting smaller audiences.