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Five Types of Audience Segmenting and How to Execute Precision Marketing

· investors,social media,audience,segmenting

If the latest content marketing trends show us anything, it's that content is truly here to stay. Research from Content Marketing Institute indicates that fully 89 percent of B2B marketers use content, and 86 percent of B2C marketers do, too.

That's good news because it suggests that the results of content marketing have been effective over the years. There is a downside, however, as more and more Public Companies execute content marketing strategies, that means there is a huge amount of content competing for audience attention, engagement, and loyalty.

It all comes down to your ability to get your content to the right people in your audience when they need it. Obviously, the right content tools can help you here, as can a solid programmatic advertising tools to distribute content across various devices and platforms.

But another effective way to improve your ability to reach and engage your audience is by crafting content specifically only for that micro-segment of audience. This approach can help your content interact with a specific set of audience particularly (i.e pensioners over 60 who like to travel once a year) and cut through the noise because you can write content in a tone and voice that most resonates with them (i.e subtle, less upfront, justification to minimise downside risks).

So customer segmentation is imperative when trying to send messages to a target micro audience segment. Segmenting consumers enables Investor Relations Officers (IROs) to stretch budgets and make the most of marketing dollars by reaching the most ideal visitors who are likely to become shareholders, without wasting money on impressions that will never turn into conversions.

Additionally, by reaching niche groups of people, IROs can craft messages specifically for them. This communication will enable IROs to connect with the target audience, develop relationships, and communicate messages that resonate.

There is an excess of ways to segment the market in order to reach the most ideal investors for any type of investment. Some of these include geographic segmentation, demographic segmentation, psychographic segmentation, and behavioural segmentation.

Customer Segmentation: Geographic

Geographic segmentation is the practice of segmenting a campaign’s target audience based on where they are located. Twitter, for example, can target audience by Postal, Metro, Region, State and Country.

Geographic segmentation is useful for both large and small Private and Public Companies alike. Large Companies with international shareholders may choose to distribute content to a few States in the United States at one time. For example, Barrick Gold may target Mid-Atlantic States when attracting new prospective shareholders to the Company (because these States have the highest medium household income) by sending out videos to introduce the Company's projects. Presenting these advertisements to Southeast States, for instance, would be less of a priority.

Particularly for small businesses, geographic segmentation can be used to target specific customers without wasting excess advertising dollars on impressions that will not turn into leads. For example, a junior miner could present their ad to only people within the Metro where their Projects are located.

Geographic segmentation is one type of customer segmentation that is extremely easy to implement, as many companies often have their customers’ IP addresses which they can find out which Region or State they are from.

Customer Segmentation: Demographics

Demographic segmentation is segmenting the market based on certain characteristics of the audience. Characteristics often include, but are certainly not limited to: race, ethnicity, age, gender, religious, education, income, marital status and occupations.

Also fairly easy to implement, demographic segmentation can be useful in a variety of ways. Companies trading at larger market caps may choose to market to a demographic consisting of people with household income between $100,000 - $200,000 to reach a larger investor base, while Companies at lower market caps can target specifically Males earning > $200,000 who works in a particular industry related to the Company to reach a very niche base.

Demographic segmentation is even more efficient when targeting multiple segments at once. InProved ran an online marketing campaign for a micro-cap public company where we targeted Males aged 25 - 50 years old (demographic: age) with a household income of between $100,000 - $200,000 and holds an Engineering related job. Targeting several segments increases precision and led to 14.22% click-through-rate (Industry benchmark to sending company updates is only less than 1.00%) to the Company Website, driving more than 500,000 in trading volume.

Combining various customer segmentation criteria has the potential to reach a very targeted niche market and drive buying into Stock while maximising the value of marketing dollar spent.

Customer Segmentation: Psychographic

Psychographic segmentation is far less concrete than both geographic and demographic customer segmentation, as the characteristics used to segment are less “tangible” than the latter two.

Psychographic segmentation divides the market on principles such as lifestyle, values, social class, and personality.

This type of customer segmentation is significantly more difficult to implement than geographic or demographic segmentation. To properly segment the market based on psychographics, IROs must really take the time to get to know their current and past shareholders. This includes clearly defining the ideal shareholder persona for the Company's stock (if multi-listed then 1 persona for 1 different stock exchange) and developing relationships with the investor base.

A prime example of psychographic segmentation is targeting those who are budget conscious when hunting stocks. These people value a good deal and tend to be educated and informed investors. Targeting advertisements to this segment appeals to their intrinsic budget-savvy personality.

Junior stocks can utilise this tactic nicely. One Junior Miner uses messaging like "Trading below project intrinsic value" and "Cheaper than XXX company (peer)" because it will resonate with the audience they are trying to reach.

Customer Segmentation: Behavioural

Behavioural segmentation is similar to psychographic segmentation on the basis that it is less concrete than demographic or geographic segmentation. Behavioural segmentation is the practice of dividing audience into really micro-groups according to any of the following attributes: sports, hobbies, events, occasions, knowledge, purchase patterns, awareness, liking. Many of these attributes are totally unrelated to the are of business the Company operates in.

Behavioural segmentation can be used in a variety of ways. When segmenting based on awareness, companies may opt to send their audience, who have already looked at a company update, a different Blog Post or Video. Whereas another campaign can be designed to target new but prospective shareholders who enjoys Basketball and The Avengers Movies. These People are more physically active, even reckless, and could be willing to take a punt when investing. The Analytics will be able to tell us quickly whether these audiences are engaged with the Company's content or not, and Technology (machines) can then be used to tweak and optimise the campaigns to suit the audience.

When segmenting based on occasions, companies can target prospective shareholders who are followers of any Industry Publication available on the internet.

Behavioural segmentation allows marketers to be more relevant and produce messaging that will resonate well with their desired target market.

Segment Smarter

Each style of audience segmentation carries its own unique set of benefits, but using them in conjunction with one another will create maximum impact. Reach even more specific niche markets by combining different segmentation styles.

Audience segmentation is universally applicable. The tactic can benefit IROs in any company, including private companies attracting new private stakeholders, business start-ups looking for angel investors, companies listed on international exchanges trading at less than $100mil market cap, and billion-dollar market cap public companies.

Thus, with billions of people in the world on the Internet, efficiently utilising audience segmentation will help companies raising capital to narrow the pool and reach the people that they want to be speaking to, ultimately driving conversions.

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