Marketing Segmentation: Adding Value To E-commerce Marketing Strategies

ecommerce marketing segmentation

Not all customers are the same. Neither are any two brands. This makes it essential to understand the diversification across all verticals better. This is where the role of marketing segmentation comes into play. To understand this better, consider a scenario. You want to drink coffee. You have two options, either go to the mall or just go to the café around the street. Majority of the cases will choose the second option. And why not? It is a more filtered option which fulfills the customer’s requirement. This is how marketing segmentation works.

What is Marketing Segmentation?

Marketing segmentation is the breaking down of the target audience across various market segments. We classify these segments based on several factors. Are you wondering what is the need for marketing segmentation? Simply put, it makes the marketing process simpler and faster. It requires a lot of time and patience, but it is all worth the effort in the end. You can’t go about selling all products available on your site to your customers without allowing them to seek and find what’s of interest to them individually. This will surely lead to disinterest among your consumers and even demotivation for the brand.

marketing segmentation

Benefits of Market Segmentation

Among all the marketing strategies, what is the need for marketing segmentation? In brief, it makes the implementation of all other marketing tactics easier, quicker and more targeted. As an example, Amazon generates over 30% of its customer base with the help of market segmentation. Amazon has clearly realized the benefits, which include:

  • It involves tailor-made initiatives for marketing according to the target audience. This leads to customer attraction and acquisition.
  • It helps in the customer’s identification and their choices. This makes it easier to offer, alter and enhance your products accordingly.
  • Marketing segmentation offers the benefit of customer retention.
  • With the help of upselling, through introductory offers and other such tactics, it helps in increasing sales and revenue. This also leads to building the customer’s trust.
  • The major benefit, obviously, is increased business profits.

Tips for Market Segmentation

So, how do you go about segmenting your marketing efforts and targeting the right audience with the right products, messages and content? Here is a guide to follow:

  • Set up analytics first: The most important step is to add Google Analytics and track the activities of your customer base. This solves most of the problems by segmenting the audience. It even allows for understanding the customers behavior and response on the web.


  • Never assume before testing: Sometimes the statistics can be misleading. People’s opinions can change in more ways than we expect. Make no judgements about the audience before putting them to test. Segment your products, make a hypothesis and put it to test. You may find some unexpected insights.


  • Stay organized: One important aspect of market segmentation is – do not hurry. Implement all your different strategies individually and pay each one its own warranted amount of attention. Choose one criterion and work on it for easy segmentation. You can create a marketing funnel first and then delve deeper into segmenting it, without affecting the complete structure.


  • It seems complicated, but it works: The layers of market segmentation are intricate. We recommend starting your segmentation efforts on a smaller scale. There are countless variables you need to consider, but with the right implementation, it works pretty well.


Types of Market Segmentation For Targeted Marketing

To target potential customers, businesses opt for several types of market segmentation. There are basically 4 types of market segmentation. These include:

  • Geographic segmentation: This is good for businesses which operate internationally or across different regions of a country. This allows them to segment customers according to the regions where your customers live. It involves the classification according to a defined boundary. These include:
    • ZIP code
    • City
    • Country
    • Climate
    • Urban or rural

geographic segmentation

  • Demographic segmentation: This involves the statistics of a group or community. This is good for classification within a country and is factual. We can do the demographic segmentation of a B2C audience based on the following criteria:
    • Age
    • Gender
    • Income
    • Ethnicity
    • Location
    • Education

We can do the demographic segmentation of the B2B audience by adding in some of the following criteria:

    • Size of the company
    • Industry
    • Job function

demographic segmentation

  • Psychographic segmentation: This segments customers according to their traits and personalities. They are a little difficult to divide as they are subjective and focus little on data. Some criteria for psychographic segmentation include:
    • Values
    • Attitudes
    • Personality traits
    • Lifestyles
    • Interests
    • Motivations
    • Priorities
    • Others

psychographic segmentation

  • Behavioral segmentation: This segmentation involves the customers’ actions. It includes the interaction of customers with the brand. The various factors for behavioral segmentation include:
    • User habits
    • Purchasing and spending habits
    • Interaction with brands

Behavioral Segmentation

Creation and Ways of Marketing Segmentation Strategy

These are a few ways in which you can drive down segmentation even further and get more specific.


  • Type of visitor: It is a classification depending on whether the customer is visiting the site for the first time or making a repeat purchase. For first-time visitors, the sites usually offers special discounts for customer acquisition and lead generation.


  • Site engagement: This involves the CTR and on-site for customers. The customers who spend more time on the e-commerce site may get different personalizations as compared to the ones spending less time, or first-time visitors.


  • Product categories and views: Under this, we check the search history and product categories viewed by the customer. Following this, we provide similar recommendations to the customers visiting the site.


  • Device: While categorizing under market segmentation, we check the digital platform and device through which the customer reached the site. This allows the optimization of the web and the conversion of the audience.


  • Order value: For frequent customers, you can do market segmentation based on the lowest and highest order values.


  • Third-party sources: To gain more details of your customers, you can enrich the data from external third-party sources. This includes the personal details including name and email address of the customer. It helps in expanding the customer base.



To summarize, market segmentation is more like running a company. Companies divide the employees based on skills and talents. Similarly, you can segment the customers based on various criteria. It is one of the proven marketing strategies to build your brand and grow your business. Further, it is the best way to make tasks simpler and quicker. So, why not give it a shot?

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