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June 5, 2025

Targeting the right audience: The power of segmentation

By dividing your customer base into meaningful groups, you can deliver more relevant, engaging, and effective marketing. In this post, we’ll explore the power of segmentation and how to do it right.

Targeting the right audience: The power of segmentation

What is audience segmentation?

Segmentation involves dividing your audience into smaller groups based on shared characteristics. These might include demographics, purchase behaviour, engagement level, interests, or location. The goal is to customise your messaging so it resonates with each segment, rather than blasting a generic message to everyone.

Why segmentation matters

Segmented campaigns can drive up to a 760% increase in revenue, according to Campaign Monitor. Why? Because relevant messages perform better. Segmentation improves open rates, click-through rates, conversions, and overall engagement. It also enhances customer satisfaction by making them feel understood and valued.

Common types of segmentation

  • Demographic: Age, gender, income, education
  • Geographic: Country, city, climate, timezone
  • Psychographic: Lifestyle, values, personality traits
  • Behavioural: Purchase history, app usage, content engagement
  • Firmographic (for B2B): Industry, company size, job role

Each type provides a different lens to understand your audience, and they’re often most powerful when used together.

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How to segment your audience

Start by collecting data through sign-up forms, analytics platforms, customer surveys, and CRM systems. Then, use email platforms or customer data platforms (CDPs) to create audience segments. Keep the following tips in mind:

  • Don’t over-segment. Focus on groups with clear, actionable differences.
  • Regularly update segments as your audience evolves.
  • Test different messages with each group to see what works best.

Segmentation in action

If, for example, you ran an eCommerce brand selling outdoor clothing and equipment, you might create:

  • A segment of repeat buyers for loyalty offers
  • A segment of cold leads for re-engagement emails
  • A segment of new subscribers for onboarding
  • A segment of hikers vs. campers vs. cyclists, each receiving tailored content

This level of relevance boosts your chances of conversion significantly.

“If you're marketing to everyone, you're marketing to no-one.”

Tools to help with Segmentation

Most platforms these days make segmentation easy. Look for tools with automation, tagging, and dynamic content capabilities. Examples include:

Segmentation empowers you to speak directly to the needs, desires, and behaviours of different audience groups. It’s a smart way to boost engagement, build trust, and improve marketing ROI. Whether you’re a small business or an enterprise, mastering segmentation is one of the most impactful things you can do for your marketing strategy.