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TV Analytics

How to sharpen your market segmentation tools

Written by Tony Loxton
Apr 11

Market segmentation boils down to one thing and one thing only: understanding your customers. (And I mean really getting them.)  But, what was once efficient a while ago, loses its efficacy after a while.

From new technology, consumer sentiment, and even the weather, your market segmentation strategy has to evolve alongside changing markets.

If you want to successfully connect with your consumers, and enjoy priceless brand advocacy as a result, you need to be continuously gathering every single iota of data in order to truly understand your market. A finely-tuned, multi-source market segmentation toolkit digs deep, enabling you to unearth insight that’s vital to understanding the who, why, where and hows of every single segment of your unique consumer base.

Geographic and demographic data – long hailed as the be all and end all of market segmentation – is merely one piece of the puzzle.

It’s an important one, but one piece does not make a whole puzzle. Far from it in fact. The good news is, you don’t need to throw the proverbial baby out with the bathwater; traditional market segmentation tools remain relevant. That said, this information is infinitely more powerful when combined with tools that unearth the psychology behind why your customers do what they do. Thanks to the rapid pace at which technology is evolving and influencing the way we live, new means of market segmentation have emerged. In other words, the whys and hows of your customers’ interactions with your brand. This priceless psychographic and behavioural data enables you to determine how your customers perceive your brand (and your competitors), identify the motivating factors behind their buying decisions, and learn which marketing campaigns elicit the best response.

Customer review apps, websites and forums now hold more weight than ever before.

An astounding 81% of customers do online research before making a purchase, reports AdWeek. Consumer review sites like ProductReview and G2Crowd, all provide a platform where anyone can post and read reviews and opinions on a range of things including products, services and more. In addition, thanks to Google’s omnipotence and seamless integration with third-party apps, reviews of businesses are automatically displayed whenever you use the search engine. These sources are teeming with information about consumer sentiment, and are a valuable addition to your market segmentation methods.

Thanks to social media monitoring, it’s easier than ever to gauge not just sentiment and opinion, but collect incredibly detailed data about your consumers too.

Also known as social listening, keeping track of when, where and how your brand is mentioned online gifts you with far more than vanity metrics. Every time someone mentions your brand, you’re able to collect information about them. The term ‘social media monitoring’ is slightly misleading; in actual fact, it applies to the monitoring of all online media – from blogs, websites and search engines, to forums, social media platforms and review sites. Tools like Raven, Mention, Hootsuite and Social Mention, offer ways to glean and analyse this vital info. For example, if someone mentions your brand in a tweet, you’re privy to a plethora (over 150 points of metadata points to be exact, reports The Wall Street Journal) of information about the individual. All in all, social monitoring is a powerful addition to your market segmentation toolkit, enabling you to determine who’s talking about you, what they’re saying, and the ways in which you can best connect with and serve them.

Paid social media advertising can further bolster your market segmentation efforts, thanks to the fact that it uses incredibly specific data to pin-point your audience.

If you’re using paid social as a part of your marketing campaign, you’re able to segment your audience according to incredibly specific data gleaned from the social profiles of your customers. This includes not only demographic and geographic information, but their skill sets, location, lifestyle characteristic, interests, buying behaviour and frequently searched terms too. As with many aspects of attempting to understand your customers, when using paid social media advertising for market segmentation purposes, it’s a case of trial and error. Once you’ve done some experimenting as to what content resonates with who, you’ll then be able to identify the common denominators of each segment of your core customer base.

Above the line media, typically deemed almost impossible to measure, can now be used as a potent addition to your market segmentation methodology.

We may live in an age of online-everything, but according to this article from AdWeek, TV ads remain the most effective means of advertising. It’s therefore crucial to make use of TV data analytics that can measure the performance of your ads by network, time of day, creative, leads, sales, and most importantly, ROI. By continuously tracking and analysing your TV ads, you’re constantly refining your market segmentation too. This valuable data enables you to fine-tune your marketing segmentation and as a result, optimise your marketing strategies and ad spend.

With myriad data gathering tools at your disposal, the most effective way to amplify your market segmentation efforts is by making use of ‘blended data’.

In other words, a mixture of data across all platforms. This provides context – a crucial factor when making informed, data-driven decisions about not only market segmentation, but your entire operation too. On it’s own, data from one source, like your in-store foot traffic counter, for example is one dimensional; when combined with other data like your inventory, CRM, social activity and media performance you’re left with a technicolour, 3D picture of your market segments.

Blix TV gives you in-depth insight into the performance of your TV ads. Find out more, here.

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