How To Create A Classic Segmentation Funnel On Outgrow
Hey there! We’re back with another set of tips and ideas that shall take your marketing strategy to the next level. This time, we’re going to talk about Segmentation Funnels. So make sure that you give us your undivided attention as we talk about the need, usage and strategies for dividing your market!
Segment One. What is Market Segmentation?
In a nutshell, market segmentation is the practice of categorizing your customers, leads or prospects into different sections (read segments) based on certain common characteristics. This process takes on great significance in today’s cluttered marketplace, which has thousands of products, media proliferation, and ad-fatigue.
Rightly segmenting the market place is what can make the difference between the success and failure of your company. In fact, a study by Harvard Business claimed that in the US, 85% of 30,000 new product launches failed because of poor market segmentation. Whether you’re a B2B or B2C company, segmenting your market is crucial. You can segment the market into different types of businesses, demographic segments, lifestyle segments, behavioral segments or any other meaningful segment.
Segment Two. Why do you Need a Segmentation Funnel?
Give it a thought. Not everyone likes the same things right? So do you think that if you create a single product and market it through generic campaigns, everyone would be interested in buying it? Take a look at the advantages that creating a segmentation funnel provides –
Reach your target market
Without segmentation, your target group is lost in the population. Instead of focusing on the needs of the entire market, segmentation allows you to break down the needs of everyone, specifically focusing on your target niches.
Through segmentation, you get to personalize your marketing and sales communications instead of having a generic message for all. And when you focus on specific traits and characteristics, it is more likely that the consumer will pay attention to the message, relate to it, and subsequently buy into that product or idea.
Identifying Market Opportunities
A marketer can study the needs of each segment keeping the current offerings by the competitors in mind and thus understand how satisfied the customers in each segment are. Segments with low levels of satisfaction represent excellent marketing opportunities!
Simply put, segmentation helps you to better understands your consumers or leads, because it refrains from treating them as all the same. It further makes the customers feel that the brand is sensitive to their needs and ultimately gain a sense of belongingness to the brand.
Optimum Use of Productive Resources
Since you are not wasting your resources trying to reach out to everyone, segmentation helps to both reduce costs and increase the effectiveness of your resources. It allows you to concentrate your resources, money, time and effort on a profitable market, which will grow in value.
Segment Three. How do you Carry Out Market Segmentation?
When segmenting, keep in mind which characteristic of your user would be most useful for you to segment them correctly. Depending on this, the most common bases for segmenting the market include the following.
These work on the assumption that similar demographic profiles exhibit similar purchasing patterns, motivations, interests and lifestyles and that these characteristics will translate into similar product/brand preferences. For example, “What is your age?”
This type of segmentation uses human characteristics to divide people on the basis of their personality, attitude, values, interests, opinions, lifestyle etc. For example, “What is your favorite pastime activity?”
It is one of the simplest methods of market segmentation. Here, marketers can segment the people according to geographic criteria such as nations, regions, cities etc. For example, “Do you live in New York?”
Considered to be one of the best methods for dividing the market, in behavioral segmentation, groups of customers are characterized according to their usage rate, response, loyalty, and knowledge of a product. For example, “How frequently do you use a night cream?”
Segment Four. Why use Interactive Funnels to Segment your Users?
This one’s easy to answer!
Interactive funnels help you in knowing more about your audience in a fun and engaging way. They perform much better than traditional (unimaginative!) online forms and websites. In fact, interactive funnels made with Outgrow have an average conversion rate of more than 40% whereas a great landing page usually converts at 10-15%. In addition, you can take people to the next stage of the segmentation funnel from the results page of the funnel itself.
Want to see an interactive segmentation funnel for yourself? Check out this example of a live segmentation funnel on Outgrow.
Segment 5. How do you Create a Segmentation Funnel on Outgrow?
1. From your Outgrow dashboard, select “Outcome Quiz”.
2. Next, click on “Select a Template”.
3. You’re going to get to see a live example of the segmentation funnel and a template under Funnels. Simply click on “Use Template” to start creating one of your own.
Pro Tip: You can also use the template and example by scrolling down on your dashboard to our “Review our Premade Content in your Industry” section.
4. Add your segmentation question from the left panel and make the edits on the right.
5. Now click on “Outcomes” on the left panel to add all the outcomes you want to lead the segmented prospects to.
6. Once you have added all the outcomes, you now need to map these outcomes to the segmentation question by clicking on “Map to an Outcome.”
7. Finally, customize your Outcome Page with an effective CTA.
8. Don’t forget to analyze the leads generated by your funnel! Under the “Analyse” tab, make sure to review your user details and their segmentation.
Here’s a pre-built template of a Segmentation Funnel
Segment Five. Final Words.
Segmentation allows you to present the right goods to the right customers at the right time. It’s simple. Trying to sell a hamburger to a vegetarian will only lead to a wastage of time, effort, money and a poor brand image, right? Dividing your market into informed segments is a sure-shot way to improve your conversions. So when you’re looking to increase your sales, this time, try to divide the box instead of thinking outside it! 😉
Anoushka Chopra is a marketing executive at Outgrow. When not reading, she can be found traveling, enjoying puns, or spending way too much time in front of the laptop.