Ayoa’s Market Segmentation template will help you to better understand your target market, so you can create more effective marketing and product development strategies for your business.
A market segmentation matrix (or customer segmentation matrix) is a popular analytical tool that can help your business to better understand its current and prospective customers, so you can produce better results and a higher return on investment (ROI). This makes it particularly useful for marketing teams who are targeting your business’s customers directly. However, it can also be used by product development teams to help them determine which new products, services or features they should be focussing on developing first.
This effective analytical tool helps you to segment your current and prospective customers into four key quadrants. This allows you to devise marketing campaigns that target the right people at the right time, as well as ensure that your wider business is developing new products and services that your customers actually want – or have a real need for.
There are four types of market segmentation that you should take into account when planning a new marketing campaign or product launch. These are:
The Market Segmentation template in Ayoa is already divided into these segments to ensure that you and your team know everything you need in order to target potential customers in your market most effectively. All you need to do is add metrics and other useful information to each section of the template.
Our Market Segmentation template should be used anytime you start planning a new marketing campaign, though it’s also helpful to refer to when working on an existing campaign. By gaining an in-depth understanding of your existing and prospective customers, you can ensure that you are targeting the right audience with your products and services and prevent your business from wasting valuable resources, such as time and money.
For example, when working on a paid social media campaign, knowing the types of people your brand, product or service is most likely to resonate with will help you use the right messaging for your marketing communications, as well as ensure that you aren’t too broad with your targeting – which can be a costly mistake that brings in little return on your investment. Instead, you can use your available resources to reach out to more specific audiences that have a higher possibility of converting.
As our Market Segmentation template should be used as a reference when working on any new marketing campaigns, you should keep updating it as the needs of your audience changes over time. Customers have increasingly high expectations which often evolve quickly – and your team needs to be dynamic in order to keep up with new emerging trends. However, having a market segmentation matrix to refer back to means you and your team can stay one step ahead of your biggest competitors.
By keeping aware of changing trends within your market, you may even be able to identify new audiences that could become loyal customers.
Our Market Segmentation template is already divided into the four quadrants your team needs to define your market in great detail and start targeting the right audiences with your campaigns. Discover how to use it in Ayoa below.
To access the template, sign up to Ayoa. Once you've signed up, navigate to the homepage to create a new whiteboard, mind map or task board and choose this template from the library.
Invite the different members of your team to the template so they can collaborate with you via the ‘Share’ button. You should work through each quadrant of the template one by one.
Tip: If you’re working remotely, it may be useful to start filling out your customer segment matrix while you’re on a video call. Ayoa has a built-in Zoom integration and Ayoa video feature so you can do this without needing to switch between apps.
GEOGRAPHIC. For this segment, think about where your existing and prospective customers are physically located. Ask yourself: which countries, states or cities do they primarily live in? What percentage of them live in urban, suburban or rural areas? This information is vital to be aware of (even if your business is solely online) as a person’s values, interests and needs are commonly shaped by where they live.
When you have your answers, easily add this information to the template using sticky notes and lists. You can even attach documents if you want to go into even more detail!
PSYCHOGRAPHIC. In this segment, add as much information as you can about the intrinsic traits that your ideal customers possess. This could be personality traits, values, interests, opinions, attitudes and lifestyles. For example, do they care about protecting the environment? Are they frequent social media users? If so, this information should be added to this section of the template
Tip: The psychographic traits of your desired audience can be difficult to determine – and when filling out this section, it can be easy for your team to be clouded by their own assumptions. Conduct research into your existing customer base using interviews, surveys and case studies to gather this information as accurately as possible.
BEHAVIORAL. This is similar to psychographic segmentation, and you would gather this information in similar ways. However, behavioral focuses more on how your target customers interact with your brand and their attitudes towards it. You should also take into account any factors that affect their buying decisions.
For example, are they loyal to your brand or do they switch between brands depending on who is the most competitively priced? Do they make repeat purchases? If so, how often? Again, add this information to this segment of the matrix using sticky notes and lists.
DEMOGRAPHIC. Finally, in this section of the template, think about variables such as age range, gender, marital status, occupation, income, education level, family size, and ethnicity. You may also want to consider factors such as whether those in your target market tend to be homeowners or renters.
Keep referring back to your template when you work on new marketing campaigns to ensure you’re always targeting your desired audience and getting the best possible results. You should also sit down with your team every few months to update your market segmentation matrix in case anything has changed (such as new trends emerging in the market).