Targeting the right group of customers has always been the goal of marketers. For the marketing bullets to hit the right place, marketers have developed the concept of segmentation. When it comes to the lead generation process, lead segmentation carries the same importance. For any business to catch qualified leads, segmentation is necessary. The sole reason for this is that companies can convert these leads to potential buyers, improving sales.
The focal point of this content is to explain lead segmentation and its importance for campaign nurturing. Read to learn more about the term in detail.
What is Lead Segmentation?
You can think of lead segmentation as a cluster of different leads inside a large pool, tied up by a common thread. Individuals inside this segment or group will have the same interests and needs. Moreover, they will be characterized by defining features like the same age group and demographics. Lead segmentation is an important aspect of marketing and strategies. Lead generation companies use this strategy to narrow down diverse customers for better brand positioning.
Types of Lead Segmentation:
Segmentation divides your contacts into smaller units with the same tastes and preferences. The division is made based on some characteristics and properties of the leads. Here are the two types of segmenting them to get a clear idea of how these prospects are divided into smaller units.
- Explicit Segmentation: Marketers study numerous facts about the leads they want to target. The prospects may be involved in different conversations on social media platforms or fill out some form. The behavior and interests can easily be identified from such activities, thus helping marketers segmentation.
- Implicit Segmentation: This kind of segmentation is based on the actions and behaviors of a prospect. Considering the steps like downloads, email subscriptions, and products added to the cart, this segmentation is made.
Defining Features for Segmentation:
As discussed, the leads are segmented based on different characteristics and features. Here is a detailed breakdown of what these characteristics are and what is included.
Marketers use customers’ demographic information and design strategies to hit the target audience. This category contains information like:
- Prospect’s Age, Sex and Marital Status
- Education of the lead, Income and Income Source
- Nationality, Religion, and Ethnic Group of the prospect
2. Social Information:
Marketers can design brand positioning strategies using the psychographic information of the leads. Such information contains details about:
- The lifestyle of the prospect
- Social groups he/she is participating in
- Social status of the lead
- Personality traits
3. Geographic Information:
Lead generation companies collect geographic data about a group of customers. Such information can help a business make more specific brand strategies. The geographic data mainly includes:
- A particular region where the customers belong
- Info about whether the lead belongs to rural areas or urban areas
4. Behavioral Information:
Such information can be more customer-specific, enabling the marketers to get to know the prospect well. Elements like users’ behavior and purchasing behavior fall under this category. It includes:
- Brand loyalty
- Intensity to which the lead uses a product/brand
- Behaviors of the user
5. Information about an Industry:
If a business aims to target another business, like a B2B transaction, the following info will work out for better segmentation.
- Is the business a final consumer?
- Public limited or Private limited?
- Size of the corporation?
- What are the interests of the company?
All this information can assist different businesses in targeting the right audience. A lead segmentation can only be successful if it has a strong information base.
Why Does Lead Segmentation Matter?
Since lead segmentation is a part of marketing, it can be used to boost sales. The process results in some useful information about the prospects, which can help companies better brand positioning. Some of the benefits of a successful lead segmentation are discussed in the coming lines.
1. Improves lead generation channels:
A business having difficulty in attracting potential leads can greatly benefit from this strategy. Since the process is all about narrowing down a diverse group of customers, it can boost sales. The only thing that companies must take care of is the collection of valid data.
2. Better serve your customers:
You can only cater to your client’s needs if you know them. Lead segmentation is an effective way of knowing your clients. A business can shape useful and attractive strategies to target the interested audience base.
3. Improved Sales:
Targeting the right audience means improving sales. With a base of right and loyal customers, a business can touch the climax point.
Why Hire a Professional Lead Generation Company?
Successful lead segmentation is only possible if you have an expert company onboard. Since the process is complex and requires technical knowledge and skills, you need these professionals. Don’t hesitate to contact one of the best lead generation companies in Abu Dhabi for improved business performance.