12 Types of Audience Segmentation to Master Precision Targeting

You know that the buying journey constantly evolves.

Plus, customers increasingly crave personalized experiences.

Hence, you must focus on more custom approaches rather than relying on generic marketing messages.

In fact, B2B buyers progress 70% of the way through their journey before engaging with an SDR.

And at this stage, they already desire customized offers. It emphasizes the importance of reaching them with impactful, targeted messaging. 

And this is where audience segmentation becomes a game-changer. Let’s check it out!

What’s B2B Audience Segmentation?

While B2B segmentation may differ slightly from its B2C counterpart, the concept remains influential in driving results. 

By dividing your market into subgroups, you gain deeper insights into your customers' unique needs and motivations. As such, it allows you to serve them better. 

Notably, research from SALESmanago reveals the following interesting insights into the advantages of audience segmentation: 

Now, numbers NEVER lie! Hence, you understand the importance of audience segmentation.

So, if your sales and marketing efforts are falling short, it's time to dive deeper into market research – to understand what drives each segment.

The 12 Major Types of B2B Audience Segmentation

Market segmentation techniques enhance revenue generation and enable personalized customer experiences. 

By utilizing the best personalization tools, you can segment your audience to:

• Drive more leads through calls, emails, and SMS
• Boost sales conversion rates
• Increase average order values
• Maximize Customer Lifetime Value (LTV)

That being said, let’s explore the 12 types of audience segmentation you must use to master:

•  Precision targeting

• Remarkable results delivery 

So get ready to unlock the potential of targeted marketing and revolutionize your approach to engaging with diverse customer segments.

1. Demographic Segmentation

Demographic segmentation involves categorizing customers based on various demographic factors. 

Here are some critical aspects of demographic segmentation:

• Company Size

Segmenting audiences by company size allows you to tailor your marketing strategies to meet different-sized organizations' unique needs/challenges. 

You can understand the resources and goals of small, medium, and large companies. As such, you can deliver targeted messaging and solutions that resonate with the target audience’s requirements.

• Industry Type

Each industry has its own pain points, regulations, and preferences. Hence, you should customize your marketing efforts to address different industries' distinct characteristics and requirements. Here are some of the significant sectors in the B2B landscape:

• Manufacturing
• Software
• Education Technology
• Healthcare
• Technology
• Finance

– and others.

You can effectively engage and convert customers by aligning your messaging and offerings.

• Job Title/Role

Segregating your audience by job title/role enables you to target decision-makers and influencers directly. 

Plus, you can tailor your messaging to address their specific needs by understanding the responsibilities, priorities, and pain points of various job roles. 

2. Firmographic Segmentation

Firmographic segmentation focuses on crucial attributes related to a company's structure and characteristics. Here are its key elements:

• Revenue

Segmenting by revenue, or annual sales, helps categorize companies based on their financial size and business performance. 

In addition, understanding the revenue range allows you to tailor your marketing efforts to address companies' specific needs and preferences in different economic brackets.

• Number of Employees

Segmenting by the number of employees allows you to classify companies based on their workforce size. 

This segmentation helps develop targeted marketing strategies that cater to the needs of businesses with different staffing levels. As such, whether targeting small, medium, or large companies, you can customize your messaging and solutions accordingly.

• Business Type

Segmenting by business type involves categorizing companies based on their legal structure, such as:

• Sole proprietorship
• Partnership
• Corporation

Each business type has its own dynamics, decision-making processes, and requirements. 

Understanding these distinctions allows you to tailor your marketing messages and offerings to resonate with each business type's specific characteristics and needs.

• Years in Operation

Segmenting by the number of years a company has been in operation provides insights into their level of experience and maturity. Businesses at different journey stages have varying priorities, challenges, and growth potential. 

3. Behavioral Segmentation

Behavioral segmentation prioritizes understanding and categorizing customers – based on their actions, behaviors, and engagement. 

Here are the elements of behavioral segmentation:

• Purchase Behavior

Segmenting by purchase behavior involves categorizing customers based on their buying patterns, such as:

• The frequency of purchases
• The amount spent
• The volume of products or services purchased

This segmentation helps you identify different types of buyers, such as frequent buyers, occasional buyers, or high-value customers. 

By understanding their purchase behavior, you can tailor your marketing strategies to:

• Incentivize repeat purchases
• Upsell or cross-sell opportunities
• Create targeted promotions that align with their preferences

• Customer Loyalty

Segmenting by customer loyalty allows you to identify customers with high commitment and engagement with your brand. 

This includes repeat purchasers and customers who consistently choose your products or services over competitors. 

By understanding customer loyalty, you can:

• Implement customer retention strategies
• Create loyalty programs
• Personalize marketing efforts 

– to nurture and reward valuable customers

• Engagement with Marketing Campaigns

Segmenting by engagement with marketing campaigns involves categorizing customers based on their interaction and response to your marketing initiatives. It includes metrics such as click-through rates (CTR) and conversion rates. 

By identifying segments with high engagement, you can:

• Refine your messaging
• Optimize your campaigns
• Tailor your communication channels

 – to resonate better with those with a higher likelihood of conversion.

4. Technographic Segmentation

Technographic segmentation focuses on understanding and categorizing customers based on technology-related attributes and behaviors. Here are the elements of technographic segmentation:

• Technology Adoption 

Segmenting by technology adoption involves categorizing customers based on their willingness and speed to adopt new technologies. 

This segmentation identifies two categories:

• Early adopters: Who embrace new technologies quickly.
• Late adopters: Who are more cautious and take longer to adopt new technologies. 

By understanding technology adoption behavior, you can effectively tailor your marketing strategies to target each group. Plus, you can address their specific needs and preferences.

• Software/Tools Used

It involves categorizing customers based on the specific software or tools they utilize in their business operations. 

This segmentation helps you understand the technology stack of your target customers. Hence, it enables you to deliver solutions that integrate seamlessly with their existing systems. 

Plus, by aligning your offerings with customers’ preferred software and tools, you can provide a more personalized and valuable experience.

• Online Behavior

Segmenting by online behavior involves categorizing customers based on their digital activities, such as website visits, content consumption, and social media interaction. 

This segmentation helps you understand how customers engage with your online channels and consume digital content. 

By analyzing online behavior, you can tailor your marketing efforts to deliver:

• Relevant content
• Personalized recommendations
• Targeted advertisements

 – that align with their interests and preferences.

5. Psychographic Segmentation

This audience segmentation approach focuses on understanding and categorizing customers based on their psychological and lifestyle attributes. Here are the elements of psychographic segmentation:

• Motivations and Goals

Segmenting by motivations and goals involves categorizing target customers based on the underlying reasons that drive their purchasing decisions. It includes incentives such as:

• Cost savings
• Efficiency improvements
• A desire for innovation

By understanding your customers' motivations and goals, you can tailor your marketing messages and offerings to their needs and aspirations.

• Decision-Making Factors

Segmenting by decision-making factors involves categorizing customers based on the key factors influencing their decision-making process. 

It includes:

• Risk aversion
• Time constraints
• A preference for building relationships with vendors

By understanding these decision-making factors, you can adapt your marketing strategies to:

• Alleviate concerns
• Provide convenience
• Build trust to facilitate decision-making

• Values and Beliefs

Segmenting by values involves categorizing customers based on their core beliefs. 

It includes values such as environmental consciousness or a commitment to social responsibility. 

By understanding the values and beliefs of your target customers, you can align your brand messaging and initiatives, resonating with their ethical and social considerations. As such, you can create a stronger emotional connection and loyalty.

6. Needs-Based Segmentation

Needs-based segmentation focuses on understanding and categorizing customers based on their specific pain points, challenges, and desired solutions. Here are its main elements:

• Specific Pain Points or Challenges Faced

 It involves categorizing target customers based on the problems or obstacles they encounter in their business or personal lives. 

This segmentation helps you identify the unique struggles of different customer segments. By understanding their pain points, you can develop solutions that address their specific needs, driving satisfaction.

• Desired Solutions or Outcomes

Segmenting by desired solutions or outcomes involves categorizing customers based on their aspirations and their desired results. 

This segmentation focuses on understanding customer segments' goals, objectives, or desired outcomes. 

By understanding their desired solutions, you can tailor your marketing strategies to highlight the benefits and value your products or services offer in meeting their needs.

7. Account-Based Segmentation

Account-based segmentation is an audience segmentation approach targeting specific companies or accounts rather than broader market segments. Here are its elements:

• Targeting Specific Companies or Accounts

Account-based segmentation involves identifying and targeting individual companies or accounts that align with your ideal customer profile. 

This approach lets you concentrate your marketing efforts on a selected group of high-value accounts. Hence, you can ensure a more personalized and targeted approach. 

Further, by focusing on specific companies or accounts, you can tailor your messaging, content, and offerings to address their unique needs, pain points, and challenges.

• Personalization of Marketing Strategies

Account-based segmentation emphasizes customization in marketing strategies. 

Instead of generic mass marketing approaches, account-based segmentation allows you to create highly personalized campaigns and experiences for each targeted account. 

It may involve:

• Crafting custom content
• Drafting tailored messaging
• Creating specific offers 

–that resonate with each account's unique characteristics and requirements. 

By personalizing your marketing strategies, you can:

• Establish more robust connections
• Build trust
• Enhance engagement 

–with the targeted accounts.

8. Relationship Stage Segmentation

It categorizes customers based on their stage in the customer relationship lifecycle. Here are the elements of relationship stage segmentation:

• Prospects/Leads

Prospects or leads are individuals or companies who have shown interest in your products or services but have yet to purchase. Segmenting prospects or leads allows you to tailor your marketing efforts to nurture and convert them into active customers. 

By understanding their needs, preferences, and pain points, you can create targeted campaigns that:

• Drive engagement
• Build awareness
• Guide them through the customer journey

• Active Customers

Active customers are individuals or companies who have purchased and are currently engaged with your business. 

Segmenting active customers helps you:

• Identify opportunities for upselling and cross-selling
• Offer ongoing support and value

By understanding their purchase history, preferences, and behaviors, you can develop:

• Personalized offers
• Loyalty programs
• Targeted communications 

–to enhance their satisfaction, retention, and advocacy.

• Lapsed Customers

Lapsed customers are individuals or companies who were once active customers. However, they haven’t purchased or interacted with your business significantly. Segmenting lapsed customers allows you to re-engage and regain their business. 

By understanding the reasons for their inactivity, you can develop:

• Targeted reactivation campaigns
• Special offers
• Personalized incentives 

–to encourage them to return and reignite their relationship with your brand.

9. Purchase Stage Segmentation

Purchase stage segmentation focuses on categorizing customers based on their stage in the purchase decision-making process. Here are the elements of purchase stage segmentation:

• Awareness Stage

The awareness stage is the initial phase of the customer's journey, where they become aware of a problem or need. Segmenting customers in the awareness stage allows you to target those actively seeking information or solutions related to your offerings. 

By understanding their pain points and informational needs, you can create content and marketing campaigns that:

• Raise awareness
• Educate buyers
• Position your brand as a potential solution

• Consideration Stage

The consideration stage is when customers evaluate different options and consider various products or services. 

Segmenting customers in the consideration stage allows you to target those actively comparing alternatives and seeking specific features, benefits, or pricing information. 

By understanding their evaluation criteria and preferences, you can provide:

• Targeted content
• Product comparisons
• Case studies
• Demos 

–highlighting your offerings' unique value.

• Decision Stage

In the decision stage, customers are ready to purchase and actively decide which specific product or service to choose. 

Segmenting customers in the decision stage allows you to focus on those close to buying and may require additional incentives or reassurances. 

By understanding their decision-making factors and potential purchase barriers, you can provide:

• Personalized offers
• Testimonials
• Guarantees
• Discounts 

–that help them finalize their decision in your favor.

10. Customer Journey Segmentation

It prioritizes understanding and categorizing customers based on their progression through the customer journey stages. Here are its primary elements:

• Mapping the Customer Journey

It involves identifying the key stages customers go through when interacting with your business – from initial awareness to post-purchase activities. 

This segmentation approach allows you to understand the touchpoints, interactions, and decision-making processes that customers experience during their journey. 

By mapping the customer journey, you can identify opportunities for segmentation and customization based on specific stages.

• Tailoring Marketing Efforts to Each Stage

Customizing your marketing efforts according to the customer journey stage involves the following:

• Creating targeted strategies, messaging, and experiences 

–that align with the needs and expectations of customers at different points in their journey. 

By segmenting customers based on their journey stage, you can deliver:

• Relevant content
• Curated offers
• Engagement tactics 

– that guide and support them throughout their decision-making process. 

This approach helps you address their specific pain points, provide relevant information, and build trust and loyalty at each stage.

11. Cross-Sell and Upsell Segmentation

Cross-sell and upsell segmentation identify opportunities to offer additional products or services to existing customers. Here is the element of cross-sell and upsell segmentation:

• Identifying Opportunities for Additional Products or Services:

Cross-sell and upsell segmentation involves analyzing customer data to identify potential cross-selling and upselling opportunities. 

By segmenting customers based on their purchase history, preferences, and behaviors, you can identify specific products or services that complement or enhance their existing purchases. 

This segmentation approach allows you to target customers who are more likely to be interested in related or upgraded offerings.

12. Competitive and Partnership Segmentation

It focuses on differentiating your target audience from competitors and identifying potential collaborative opportunities. 

Here are the elements of competitive and partnership segmentation:

• Differentiating Target Audience from Competitors

Competitive segmentation involves analyzing your target audience compared to your competitors' customer base. 

By segmenting customers based on their preferences, needs, and behaviors, you can identify unique characteristics that set your target audience data apart from your competitors' customer base. 

• Identifying Potential Collaborative Opportunities:

Partnership segmentation involves identifying potential collaborative opportunities with other businesses or organizations that complement your offerings. 

By segmenting your target audience, you can identify customer segments that could benefit from partnerships or alliances with other brands. 

This segmentation approach helps you identify opportunities for:

• Cross-promotion
• Joint marketing campaigns
• Strategic collaborations 

– to expand your reach, enhance brand perception, and drive mutual benefits for both parties.

Combining Audience Segmentation Strategies

Combining multiple audience segmentation methods can expand your reach and effectively target your marketing efforts. 

Instead of relying on a single segmentation approach, utilizing multiple methods allows you to tap into different aspects of your audience's characteristics, preferences, and behaviors. 

For example, you can combine demographic and psychographic segmentation to create more refined audience segments. 

It enables you to deliver personalized messages that resonate with specific groups of individuals, increasing the likelihood of engagement and conversion.

Illustration: Sending Targeted Email Notifications Based on Demographics and Behavior

Let's say you have a customer database that includes information such as age, gender, and past purchase behavior. 

By combining demographic segmentation (age and gender) with behavioral segmentation (past purchase behavior), you can create targeted email campaigns. 

For instance, you can send exclusive offers or product recommendations tailored to specific age groups or genders based on their past purchase history. 

This approach increases the relevancy of your email notifications, enhancing the chances of generating interest and driving conversions.

The Intersection of Audience Segments

Understanding the intersection of different audience segments allows you to uncover unique insights and tailor your marketing strategies accordingly. 

For example, 

When considering the behavior of millennials, a significant portion of them are mobile-only internet users. 

This realization highlights the importance of optimizing your marketing efforts for mobile platforms to reach and engage this particular segment of your audience effectively.

Further exploring the behavior of mobile-only internet users, you may discover that this segment engages more with long-form content, such as in-depth articles or comprehensive guides. 

With this knowledge, you can create and promote long-form content catering to their interests and preferences. 

This approach lets you capture their attention, provide value, and nurture their engagement, ultimately building stronger connections with mobile-only users.

How to Use Audience Segments

Let’s now check out how you can use the different types of audience segments to your advantage:

• Utilizing Targeted Marketing Campaigns: One of the key ways to leverage audience segments is by using them to drive targeted marketing campaigns. 

It could involve:

• Creating personalized email campaigns that speak directly to the interests and needs of specific segments 
• Running targeted social media ads that reach the right audience at the right time
  Utilizing audience segments in your marketing campaigns helps increase the relevance and effectiveness of your messaging. 

• Gaining a Better Understanding of Different Audience Segments: Another vital way to use audience segments is gaining a deeper understanding of your target audience.

You can uncover valuable insights about their preferences, needs, and behaviors by segmenting your audience based on various criteria, such as – demographics, psychographics, or behavioral patterns. 

This deeper understanding allows you to make more informed decisions regarding product development, content creation, and marketing strategies. 

By tailoring your offerings and messaging to align with the specific needs and preferences of different audience segments, you can:

• Enhance customer satisfaction
• Build stronger relationships
• Drive business growth

Audience Segmentation Tips

When segmenting your audience, it's crucial to balance specificity and practicality. While defining segments based on relevant criteria is essential, narrowing them can limit your reach and effectiveness. 

By keeping segments widely defined, you ensure you have a sufficiently large audience to target while capturing the key characteristics that make each part distinct.

• Aim for Constant Improvement

Audience segmentation is not a one-time task. Therefore, continuously improving and refining your segmentation strategies is crucial for optimal results. 

Experiment with different criteria, variables, or approaches to segmenting your audience. This experimentation allows you to:

• Uncover new insights
• Discover untapped opportunities
• Optimize your targeting efforts over time

• Evaluate Audience Segments

When assessing your audience segments, consider the following:

• Their applicability to your business
• The distinct characteristics that define each part
• The segment size
• The capacity to generate desired outcomes

Now, why are these elements important? Here are the reasons:

• Relevance ensures your efforts align with your target market
• Distinctiveness allows for targeted messaging
• The size determines the potential impact
• Capability indicates the segment's likelihood to convert or engage with your offerings

• Define Goals 

It's essential to set specific and measurable goals for each audience segment. For example, a goal for one segment may be to increase product adoption, while another could be to improve customer retention rates. 

Setting segment-specific goals lets you focus your efforts and track progress more effectively.

• Align Goals with Company Objectives

While segment goals are specific to each audience group, aligning them with your overall company objectives is crucial. 

• It ensures the efforts put into each segment contribute to the broader goals of your business. In addition, by aligning segment goals with company objectives, you create a cohesive strategy that maximizes the impact of your segmentation efforts.

• Track and Adjust Goals

Regularly track and evaluate the performance of your audience segments against their defined plans. 

Analyze key metrics, such as:

• Conversion rates
• Engagement levels
• Customer satisfaction 

– to measure the effectiveness of your segmentation strategies. 

Based on the evaluation, make necessary adjustments to your goals, targeting approaches, or messaging – to optimize performance and achieve desired outcomes.

• Leverage Social Media

Social media platforms provide excellent opportunities to target and engage with particular audience segments. 

Utilize platform-specific targeting options, such as demographic filters or interest-based targeting, to ensure your messages reach the right audience. 

Plus, craft content and campaigns tailored to the preferences and behaviors of each segment – maximizing your impact and driving engagement.

• Engage Via Blogging and Guest Posts

Blogging and guest posting allow you to reach and connect with specific audience segments by providing valuable content tailored to their interests and needs. 

Identify the topics and themes that resonate with each segment. Next, create engaging blog posts or contribute guest articles on relevant platforms. 

As such, you can position your brand as an authoritative resource and establish connections with your target audience.

• Create Relevant YouTube Videos

YouTube offers a powerful channel for reaching and engaging with diverse audience segments. 

Create videos that address each segment's interests, pain points, or aspirations. Then, optimize your:

• Video titles
• Descriptions
• Tags 

– to ensure they align with the search intent of your target audience. 

By providing valuable content and optimizing your videos for discoverability, you can expand your reach, attract subscribers, and foster a loyal audience base.

• Test Segmentation Strategies

One of the critical aspects of audience segmentation is testing different approaches to determine their effectiveness. 

By conducting tests, you can:

• Evaluate the performance of your segmentation approaches
• Identify the ones that yield the best results

Plus, testing allows you to refine your targeting criteria, messaging, and channels – to optimize campaign performance and achieve higher conversion rates. 

Hence, it enables you to make data-driven decisions and fine-tune your segmentation strategies for maximum impact.

• Monitor Data

Data monitoring is an ongoing process that closely tracks and analyzes your segmented campaigns' performance metrics. 

Monitoring data gives valuable insights into each audience segment's behavior, preferences, and engagement levels. 

This information helps you understand how effectively you reach and resonate with your target audience. 

So, based on the data analysis, you can make necessary adjustments to your:

• Targeting parameters
• Messaging strategies
• The selection of segments

Continuous monitoring and adjustment ensure that your targeting remains effective and aligned with your audience's evolving needs and behaviors.

Conclusion

Audience segmentation is a powerful strategy that allows you to tailor your marketing efforts and connect with your target audience on a deeper level. By understanding the unique characteristics, behaviors, and preferences of different audience segments, you can deliver personalized experiences and drive better results for your business.

To leverage the full potential of audience segmentation and maximize your marketing impact, consider partnering with Revnew. Our results-oriented company analyzes, organizes, and optimizes your audience data. With our expertise, we can help you unlock valuable insights, improve targeting precision, and increase your profitability.

Schedule a consultation with Revnew to unlock the power of audience segmentation and revolutionize your marketing strategy.