Optimising Your Benefit Segmentation Strategy For Your Customers
Sales & Customer Success

Optimising Your Benefit Segmentation Strategy For Your Customers


Today, everyone is busy promoting their business using new technological tools. To compete with other brands, people keep looking for ways to attract new audiences and generate leads. So what is benefit segmentation?

Inbound marketing is one such strategy used for lead generation. If you want your business to keep growing, you must plan according to the demands of your customers. 

Considering the competition today, it is vital to make the right marketing decisions. Without this, a business might not sustain itself. Benefit segmentation plays a massive role in helping businesses reach their marketing goal. Understanding your customers is key to reaching these goals.

Most companies use benefit segmentation that helps them organize leads and provide them with what they want.

This post will help you understand what benefit segmentation is. It will also help you understand how it can help your business generate leads and attract the right audience. Let’s take a look at how and why benefit segmentation is gaining popularity.              

What is Benefit Segmentation?

The biggest question that everyone encounters is what do customers want? The answer to this question is not that straightforward. This is because every customer is unique with different needs. If you are looking to generate leads, you need to take care of the needs of every customer.

This is where benefit segmentation comes into the picture. 

Companies use various marketing techniques. This helps attract the right audience by their perceived value.  With benefit segmentation, the companies divide customers based on benefits.

They also segment them for a particular product or service.  They further divide the targeted audience into groups for their benefit and target them. By pursuing them, the company generates more leads and ensures customer conversion.              

Examples of Market-Based Benefit Segmentation

Let’s look at a few real-life examples where companies used benefit segmentation to generate leads. 

Mobile Companies Perceived Value

Almost all mobile phone manufacturers make use of benefit segmentation. Companies use this technique by keeping the targeted audience in mind.

The need for every customer varies depending on their interest. To generate leads, companies should approach customers depending on their segments. This is why mobile companies divide customers into different segments and market their products. 

Skincare Brands Marketing Campaigns

The next best example to understand benefit segmentation are skincare brands. When they market their products, they keep a close watch on the customers’ needs. They then segment the targeted audience.

There is a wide range of products in the market available for different skin problems. Skincare companies target the audience according to these problems. This includes products for acne, dark spots, early signs of ageing, and other problems.

Companies attract customers as per their needs and then converted them into potential buyers.  This list doesn’t end here. Almost everyone makes use of such marketing campaigns to attract the right audience.

They understand the needs of the targeted audience and divide it into different segments to generate profits.              

Benefits of Market Segmentation

Various companies have now started focusing on benefit segmentation.  There are multiple reasons behind this form of benefit segmentation gaining popularity and why it is so effective.

One of the major advantages is it offers customized solutions to marketers and publishers. Let’s take a look at the benefits of segmentation.              

Improvement in Campaign Performance

Benefit segmentation is a technique that can help you learn more about your target audience. This will also help you improve your campaign performance. 

Targeting all types of audiences will never give you the desired result. Extensive audience targeting will increase your advertising revenue. It will also reduce your conversion rates. Instead, targeting small groups of specific people will save money and give you higher conversion rates and generate profits.              

Better Product Development

Benefit segmentation can assist businesses in developing products that better fulfil their customers’ needs. This marketing strategy can help companies can develop different items geared to different segments of their consumer base.

It also helps them create products to appeal to the needs of their key market segment. For example, one sector might be families who enjoy going on outdoor vacations. Another segment might prefer solo city trips.              

Reveal Areas to Expand

Marketing segmentation can assist companies in identifying audience categories they are currently missing out on.

For example, a company’s sales may mostly be made in physical stores. They might notice that many of their customers choose to shop online based on behavioural data. They might then start an eCommerce or increase the advertising of their online marketplace based on this information.              

Improves Business Focus

Marketing segmentation can assist organizations in establishing a brand identity. It can also help them specialize in a specific product category. In their marketing campaign, a company that strives to appeal to everyone will come across as generic and unmemorable.

Companies can now expand their offers as it grows. This, however, might be difficult to put in place during the initial phase.              

Informed Business Decisions

Marketing segmentation can assist businesses in determining pricing that maximizes sales while keeping customers happy. Companies may take into account demographic information.

This includes information such as income levels and the price sensitivity of their clients. Businesses can arrange special discounts to enhance sales. They do this by paying attention to seasonal demand variations.              

The 4 Types of Market Segmentation

If you are looking for different types of marketing segmentation, then here are 4 different techniques used by various companies to reach out to their target audience.              

market segmentation

Demographic Segmentation

Demographic segmentation is a segmentation technique that is quite common in the market.  Companies divide the audience based on criteria like gender, age group, financial status, and more in this segmentation.

The most vital aspect of this segmentation is dividing a market by demographics.  If demographics are combined with other segmentation methods, it might assist you in constricting your market even further.

One of the benefits of this type of segmentation is that the data is relatively easy to procure and is economical. Many products are designed with a specific customer segment in mind.  

One of the examples is the manufacturing of deodorants by personal care companies. Companies based these market segments on gender. They then introduce different products for both genders. There are a variety of methods for gathering demographic information.

One of the methods is to communicate directly with the customer. This may take some time, but receiving information directly from customers can ensure accuracy. If you opt for direct communication, then make sure you ask for customer feedback respectfully.

Also, provide them with sufficient response choices to give accurate results. You might get demographic data from the customers by taking a close look at their accounts on online platforms.               

Behavioural Segmentation

Another way to segment your audience is on their habits when they are looking for products. One of the best techniques is to design messages based on your targeted audience’s behaviour. The difference between the behaviours you might analyze is how people connect with your brand, website, or app.

Some examples of marketing strategies based on the behaviours of customers that should be considered are online shopping patterns, rate of usage, loyalty, and so on.  The data collected based on behaviour is beneficial since it connects to how people interact with your brand or products.

As a result, you may be able to promote them successfully. 

Geographic Segmentation

Companies based this segmentation on the location of the targeted audience. This is a beneficial strategy as it allows you to understand customers’ needs in a particular location and generate leads.

Geographic segmentation can take many forms. The most fundamental is identifying users based on their locations. This includes details like the country and city they belong to.  Consumers can also be identified based on their locality, which includes climate, culture, and the habitat in which they reside.              

Psychographic Segmentation

Psychographic segmentation is quite similar to the demographic method of market segmentation. It focuses on the individual’s psychological traits. These characteristics can provide vital insight into the motivations, preferences, and demands of your target audience.

Understanding these qualities of your audience will help you develop more compelling content for them. Psychographics can help you understand why consumers buy or don’t buy your goods. If you see that members of a demographic segment react to your material differently, you may wish to include psychographic data. The same methods as demographic information can gather this information.              


Market-based techniques used by companies can help in generating more leads and can even improve the conversion rate. For any business to succeed today, they require good exposure. Benefit segmentation provides the perfect platform to help large and companies.

They get the proper exposure and target customers looking for services they offer. It also helps manage marketing costs and provides better ROI, which contributes to the better growth of the business. Once a business understands what kind of segmentation works well, they need to implement it well. They should then slowly increase the spending as the business grows. This is a sure way to minimize risks and increase sales without too much trial and error.


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