Lead segmentation is important in email marketing as it allows you to plan targeted email campaigns that usually cater to high conversion rates. You may distribute your leads into segments based on demographics, behaviors, or preferences.
When talking about demographics, the most common type of segmentation is geographic segmentation where you distribute leads into separate lists based on their geographic location. The geographic segmentation allows you to run personalized email campaigns with local references, cultures, trends, etc., which can help you get higher responses to your emails. But how?
Well, today, we will take a closer look at how marketers use geographic segmentation to boost their marketing results. If you are a marketer, then you will learn all about
- What Is Geographic Segmentation?
- What are the main variables of geographic segmentation?
- How do marketers use geographic segmentation? (Implementation & Campaign Ideas)
- What is the ideal tool for geographic segmentation?
So let’s begin.
What Is Geographic Segmentation?
Geographic segmentation is a marketing strategy that involves dividing a target market based on specific geographical factors. This segmentation approach recognizes that consumer preferences, behaviors, and needs can vary significantly based on location. Whether it is at the level of a country, region, city, or even neighborhood.
By categorizing consumers according to their geographic characteristics, you can create more targeted and relevant marketing campaigns. It helps to get different types of leads according to your target audiences.
In modern marketing, geographic segmentation holds huge significance as it allows you to customize your messages and offerings to specific regions. Personalization on content based on geographic factors is a great way to resonate with different types of audiences to help with more credible decision-making.
Industries That Can Benefit From Using Geographic Segmentation
Following are some of the industries that can largely benefit from geographic segmentation.
- Retail – Geographic segmentation helps retailers tailor product varieties. It also provides promotional strategies to match the preferences and needs of specific regions or local markets.
- Hospitality – The hospitality industry can utilize geographic segmentation to customize marketing efforts. It is also offering region-specific promotions and services to cater to the unique preferences of travelers in different locations.
- Real Estate– Geographic segmentation is essential for real estate professionals to understand. You can implement an email marketing strategy for the real estate industry targeting demographic segmentation.
- Tourism – Tourism businesses benefit by crafting targeted campaigns for different destinations, considering local attractions, cultural activities, and travel preferences specific to each geographic area.
- E-commerce – E-commerce platforms can enhance their targeting by considering geographic factors. It may be such as shipping preferences, local trends, and cultural influences, to create more personalized online shopping experiences.
- Automotive – The automotive industry can benefit from geographic segmentation by tailoring marketing campaigns to address regional preferences, such as vehicle types suited for specific terrains or climates.
- Education – Educational institutions can use geographic segmentation to adapt recruitment strategies, considering the unique characteristics and preferences of students in different geographic regions, thereby attracting a more varied student body.
Strategic Advantages Of Using Geographic Segmentation
Geographic segmentation comes with a few strategic marketing advantages that make it so valuable.
i. Increased ROI
Focusing geographic segmentation holds the potential to increase your ROI due to the targeted approach leading to more conversion rates with less effort and resources used. This approach ensures that your promotional campaigns are aimed at audiences most likely to convert and helps you spend less on marketing in areas that are less responsive.
You may also go one step further and customize your products or services to meet the specific needs and preferences in regional markets. This will give you a huge local push and guarantee loyal customers in the long run. Plus, people will trust a local entity or an entity that understands local needs over any random international company.
Overall, you will get more revenue without wasting money on uncertain investments.
ii. Personalized Targeting
Personalization has always resulted in the best results in any email marketing campaign. Having direct data on one’s geographical characteristics means you can take a personalized targeting strategy based on where one lives.
You may easily recommend products that are popular and useful in those areas and use local jargon to connect more efficiently.
iii. Enhanced Customer Engagement
People are more likely to engage with content that they can relate to. If you refer to their locality, they will be more captivated, helping you with an opportunity to make them take action.
What Are The Common Geographic Segmentation Variables?
Geographic segmentation involves categorizing a target market based on specific variables related to location. Here are common geographic segmentation variables and how they can be used in marketing:
- Location (countries, regions, states, cities, zip codes, etc.)
- Climate (Tropical, cold, rainy, etc.)
- Culture (customs, traditions, languages, lifestyle preferences, etc.)
- Time Zones (based on GMT or country-wise time zone)
- Type Of Area (Urban, Suburban, Rural, etc.)
i. Location (countries, regions, states, cities, zip codes, etc.)
Location refers to the physical area where a customer is situated, such as a country, state, city, or neighborhood. It can be any place or geographical area.
You can tailor promotions and advertisements based on the unique characteristics and preferences of customers in different locations. This includes considering cultural influences, local events, and regional trends to make marketing messages more relevant.
For example, suppose you are part of a booking agency firm and you are promoting to get clients for GR20 Corsica, a famous trekking location in France. In that case, you may collect leads for people who have visited other popular trekking locations such as in the Himalayas. Or, if you are trying to aim for people who are into trekking, then referring to famous places like this can also be quite effective. So, other than the generic locations, you may also consider segmenting people based on where they visited or are eager visit.
ii. Climate (Tropical, cold, rainy, etc.)
Climate involves the prevailing weather conditions in a given area. For example, tropical countries are always warm, while countries near the poles are cold.
So when considering regular year-long promotions, you would want to recommend products that are always common in these countries. For example, Umbrellas, rechargeable fans, etc will be quite sought after for tropical reasons.
Food promotions can also be made taking climate and location into consideration. For example, Warm beverages are always popular in Alaska.
iii. Culture (customs, traditions, languages, lifestyle preferences, etc.)
Cultural factors encompass the beliefs, values, and customs prevalent in a specific geographic region.
You can tailor your marketing messages to align with cultural preferences, avoiding potential misunderstandings and ensuring that campaigns resonate positively with the local audience.
iv. Time Zones (based on GMT or country-wise time zone)
Time zone indicates the local time in a particular region. It can be based on GMT or country-wise time zone as different countries have different time zones.
Understanding time zones is crucial for scheduling marketing campaigns and ensuring that messages reach the target audience at the most opportune moments. For example, sending emails early in the morning is ideal when your target audience is working individuals.
v. Type Of Area (Urban, Suburban, Rural, etc.):
This classification distinguishes between areas characterized as urban or rural.
You can adapt product offerings and marketing strategies based on the lifestyle and preferences of customers in urban and rural settings. It recognizes the different needs and priorities of these distinct environments.
Some industries are simply built for a particular region and not for others. Many multiple national companies develop different variations of a certain product to match the type of area and their preferences.
How Do Marketers Use Geographic Segmentation To Get Higher Results?
So, how do you use geographic segmentation effectively? Most marketers use it to refine their strategies and maximize impact by tailoring campaigns to specific regions.
Now, let us look at how you can collect geographical data and use segmentation to refine your marketing plans.
1. Data Collection – Methods And Best Practices
The first step is to collect data. If you can collect the right data that your business depends on, then your marketing campaigns will deliver significantly higher results.
Following are a few ways to collect geographical data:
- Customer Surveys
Implement targeted surveys that inquire about location-specific preferences or habits. - Geolocation Tools
Utilize technology to gather real-time location data from mobile apps or website interactions. Using Google Tag Manager is a great way to do this. - IP Address Tracking
Identify user locations through their IP addresses. this is usually tracked in several tools related to lead generation and email marketing, reducing the manual need for IP address lookup.
However, in case you already have leads without the IP, then you may use certain tools that allow IP address lookup actively. - Social Media Insights:
Analyze location-based data available on social media platforms. - Purchase History Analysis
Review past purchase locations to understand buying patterns.
Once you collect these data, add them as part of your customer information in your lead management tool and then segment them. Now, you will be able to run personalized campaigns easily.
2. Targeted Campaign Implementation
Once you have the data and segmentation in place, you can tailor your marketing campaigns accordingly.
Here are some ways to leverage the geographical data of your prospects for marketing success.
i. Personalized Copy
You can craft personalized copy that speaks directly to the preferences and nuances of a particular location. Adapt language, references, and content to resonate more profoundly with the targeted audience in that region, creating a stronger connection and engagement.
ii. Personalized Product Recommendations
Offer personalized product recommendations based on location-specific preferences to get a higher response from prospects.
For instance, as an e-commerce platform, you might offer personalized product recommendations for winter clothing to customers in colder regions while suggesting summer attire to those in warmer climates, based on effective geographic segmentation.
iii. Leverage Local Trends
Stay attuned to local trends within specific geographic segments to craft your strategies accordingly.
For example, consider releasing collections or campaigns inspired by a region’s cultural events or traditions, resonating deeply with the local audience and driving interest.
iv. Optimize sending times
Use time-zone segmentation to optimize email campaigns by sending them at times when recipients are most likely to engage.
Consider different time zones to ensure messages land in inboxes when they’re most likely to be active with their email clients.
(Usually, it’s either near the morning, or afternoon right after lunch.)
v. Using References To Local Culture & History
Connect deeply with your audience by integrating references to local culture or history into your campaigns.
For instance, highlight historical landmarks or cultural festivities specific to a region, creating a sense of familiarity and resonance among the local audience.
Optimizing Your Marketing Initiatives
After you align your marketing strategies to geographical segments, the next thing to do is to optimize your marketing initiatives even more for greater success.
A. Metrics and Evaluation
Identify key performance indicators (KPIs) and utilize analytics actively to measure the success of your geographic segmentation strategies.
Here are essential metrics to track:
- Conversion Rates by Region: Measure the percentage of leads from specific regions that convert into customers.
- Geographic Engagement: Analyze engagement metrics (click-through rates, time on site) specific to different geographical areas.
- Sales Revenue per Location: Assess revenue generated from distinct geographic segments.
- Customer Acquisition Costs (CAC) per Region: Determine the cost of acquiring customers in different locations.
- Geographic Customer Lifetime Value (CLV): Evaluate the value generated from customers in various regions over their lifetime.
- By tracking these metrics, you can gain insights into which geographical segments are most responsive to your marketing efforts and where adjustments might be needed.
B. Continuous Refinement
To continuously refine your geographic segmentation strategies for optimal performance, consider employing several tactics.
A/B testing is a valuable strategy wherein you compare two variations of a marketing element (such as ad copy, visuals, or offers) within specific geographic segments to determine which performs better.
Additionally, you may conduct the following:
- Data Analysis Iteration
Regularly analyze the data collected to identify emerging trends or shifts in preferences within different regions. - Localized Content Experimentation
Experiment with localized content and messaging to gauge its impact on engagement and conversions across various locations. - Feedback Integration
Gather and integrate feedback from customers within specific regions to fine-tune marketing strategies based on their preferences and needs.
Tools To Optimize Geographic Segmentation
To optimize geographic segmentation effectively, You may require a comprehensive tool that goes beyond basic segmentation capabilities.
The ideal tool should allow you to collect leads, get custom data, and segment leads based on custom data. It should also have the option to set up email automation or create email campaigns for the segmented leads. Having detailed analytics is a plus.
Let us look at a few tools that are just about the right fit.
1. MailMint
Mailmint is a user-friendly email marketing tool for WordPress that excels in lead collection, providing customizable forms and options for gathering specific customer data, including geographic information.
Its straightforward segmentation features enable you to categorize leads based on location effectively. Mailmint also offers an intuitive interface for setting up email automation, allowing you to create targeted campaigns for segmented leads.
With its simplicity and focus on essential marketing functionalities, Mailmint is a valuable tool for seeking efficient geographic segmentation within your email marketing strategy.
2. ActiveCampaign
ActiveCampaign offers a comprehensive solution for collecting leads, capturing custom data, and segmenting audiences based on geographical parameters. This tool provides advanced automation features.
It allows you to set up intricate email campaigns that respond dynamically to the behavior and preferences of segmented leads. ActiveCampaign’s versatility makes it a valuable choice for optimizing geographic segmentation within a marketing strategy.
3. HubSpot
HubSpot is a versatile marketing automation tool that excels in geographic segmentation. It offers robust lead collection features, allowing you to capture leads through forms and custom data fields.
With its powerful segmentation capabilities, users can rank leads based on specific geographic criteria, enabling targeted marketing strategies.
HubSpot’s email automation functionalities simplify communication by setting up personalized email campaigns tailored to segmented leads. It ensures a more tailored and effective approach to engaging diverse audiences.
4. Salesforce Marketing Cloud
Salesforce Marketing Cloud provides a strong platform for lead collection and segmentation, allowing you to capture and organize custom data related to geographic preferences.
This tool assigns you to create highly targeted email campaigns for different segments through its automation capabilities, ensuring personalized communication that resonates with various audiences.
5. ConvertKit
ConvertKit is an email marketing platform designed to facilitate lead collection, customization, and segmentation for targeted campaigns. With user-friendly features, ConvertKit allows you to gather leads efficiently and capture custom data, including geographic information.
You can leverage ConvertKit’s intuitive segmentation capabilities to categorize audiences based on location, ensuring accuracy in your targeting efforts. The platform also excels in creating personalized email campaigns and providing automation tools.
This tool enables you to engage specific geographic segments with tailored content. ConvertKit’s emphasis on simplicity and effectiveness makes it a valuable asset for you looking to actively integrate geographical segmentation into your email marketing strategies.
Start Using Geographical Segmentation And Maximize Sales
As you saw, geographical segmentation is not so complicated, however, you will need to experiment with various strategies before deciding which ones work well with your business.
If your product is a tool that can related to a certain location, then you should definitely use it actively in your marketing strategies.
If you haven’t selected a tool yet, and have a WordPress site, we request you to try Mail Mint, which is our own plugin, and very efficient to collect and segment leads.
Frequently Asked Questions
1. What are the benefits of geographic segmentation in marketing?
Geographic segmentation in marketing offers benefits such as enhanced relevance, localized promotions, and the ability to cater to diverse regional preferences. Ultimately it leads to increased customer engagement and improved campaign effectiveness.
2. How do businesses collect geographic data for segmentation?
You can collect geographic data for segmentation through customer surveys, geolocation technologies, and analyzing transactional data. This data allows you to gain insights into customer locations and tailor marketing strategies accordingly.
3. Why is A/B testing important in geographic segmentation?
A/B testing is crucial in geographic segmentation as it enables you to experiment with variations in messaging, promotions, and targeting criteria. It also helps to identify the most effective strategies and continuously refine segmentation approaches for optimal results.
4. What metrics should marketers track for geographic segmentation success?
You should track metrics such as conversion rates by region, customer engagement, and sales performance by location. It increases click-through rates to measure the success of your geographic segmentation strategies and make data-driven improvements.
5. How can businesses use local culture references in marketing campaigns?
You can contain local culture references in marketing campaigns based on geographic segmentation. It helps to understand regional traditions, historical events, and cultural nuances, creating more personalized and deep messages that connect with diverse audiences.
