Target Market Segmentation

Most brands segment by demographics. Top performing brands segment by behavior. Demographics tell you who someone is. Behavior tells you what they're about to do. 𝗧𝗵𝗲 𝘀𝗲𝗴𝗺𝗲𝗻𝘁𝘀 𝘁𝗵𝗮𝘁 𝗮𝗰𝘁𝘂𝗮𝗹𝗹𝘆 𝗱𝗿𝗶𝘃𝗲 𝗿𝗲𝘃𝗲𝗻𝘂𝗲: → Engaged non-buyers (opened 3+ emails, no purchase) → One-time buyers who haven't returned in 60 days → High AOV repeat customers → Cart abandoners by product category → Browse abandoners by price tier 𝗧𝗵𝗲 𝘀𝗲𝗴𝗺𝗲𝗻𝘁𝘀 𝗺𝗼𝘀𝘁 𝗯𝗿𝗮𝗻𝗱𝘀 𝗼𝘃𝗲𝗿𝗶𝗻𝘃𝗲𝘀𝘁 𝗶𝗻: → Age ranges → Location → Gender → "VIP" based on spend alone These aren't useless. But they don't predict action. 𝗧𝗵𝗲 𝗳𝗿𝗮𝗺𝗲𝘄𝗼𝗿𝗸: Start with purchase behavior. Recency, frequency, monetary value. Layer in engagement. Opens, clicks, site visits. Add intent signals. Browse history, cart activity, wishlist adds. Build flows around each segment. Not one welcome series for everyone. 𝗧𝗵𝗲 𝗿𝗲𝗮𝗹𝗶𝘁𝘆: A 35-year-old in Texas and a 35-year-old in New York might have nothing in common. But two people who both browsed the same $80 product three times this week? They're the same segment. Segment by what people do. Not just who they are.

Most marketers get this wrong: they think they should have one target audience. They shouldn’t. Take Peloton. Who is their audience? "People who want to work out at home"? Too broad. "Fitness enthusiasts"? Not specific enough. Peloton doesn’t have one target audience. Because the best marketers think in 5 levels of audience, depending on the need. Here’s how each one works for Peloton: 1. 𝐒𝐭𝐫𝐚𝐭𝐞𝐠𝐢𝐜 𝐭𝐚𝐫𝐠𝐞𝐭 → 𝐓𝐡𝐞 𝐞𝐧𝐭𝐢𝐫𝐞 𝐦𝐚𝐫𝐤𝐞𝐭 𝐲𝐨𝐮 𝐰𝐚𝐧𝐭 𝐭𝐨 𝐜𝐚𝐩𝐭𝐮𝐫𝐞. This informs the direction of your long-term strategy, shaping product development, expansion plans, and brand positioning. For Peloton, for example, this is the entire at-home fitness market, which informs decisions such as expanding beyond bikes into treadmills, rowing machines, and even strength training. 2. 𝐏𝐫𝐨𝐝𝐮𝐜𝐭 𝐭𝐚𝐫𝐠𝐞𝐭 → 𝐓𝐡𝐞 𝐬𝐩𝐞𝐜𝐢𝐟𝐢𝐜 𝐠𝐫𝐨𝐮𝐩 𝐲𝐨𝐮𝐫 𝐩𝐫𝐨𝐝𝐮𝐜𝐭 𝐢𝐬 𝐛𝐮𝐢𝐥𝐭 𝐟𝐨𝐫. This defines your value proposition and the choices you make to deliver it. It influences features, pricing, and the overall experience. For Peloton, these are high-income professionals who value convenience and community, which leads to value prop components that include live and in-store classes, premium hardware, and a strong brand image. 3. 𝐌𝐞𝐬𝐬𝐚𝐠𝐢𝐧𝐠 𝐭𝐚𝐫𝐠𝐞𝐭 → 𝐓𝐡𝐞 𝐢𝐧𝐝𝐢𝐯𝐢𝐝𝐮𝐚𝐥 𝐩𝐚𝐢𝐧 𝐩𝐨𝐢𝐧𝐭𝐬 𝐚𝐧𝐝 𝐮𝐬𝐞 𝐜𝐚𝐬𝐞𝐬 𝐰𝐢𝐭𝐡𝐢𝐧 𝐲𝐨𝐮𝐫 𝐝𝐞𝐬𝐢𝐠𝐧 𝐭𝐚𝐫𝐠𝐞𝐭. This determines how you talk about your product. It tailors messaging to different customer needs and objections. For Peloton, this means crafting different messages for busy executives (workout efficiency), new parents (flexibility), and ex-gym-goers (competitive training), all within that high-income professional market. 4. 𝐌𝐞𝐝𝐢𝐚 𝐭𝐚𝐫𝐠𝐞𝐭 → 𝐓𝐡𝐞 𝐡𝐢𝐠𝐡-𝐯𝐚𝐥𝐮𝐞, 𝐡𝐢𝐠𝐡-𝐢𝐧𝐭𝐞𝐧𝐭 𝐚𝐮𝐝𝐢𝐞𝐧𝐜𝐞 𝐲𝐨𝐮 𝐟𝐨𝐜𝐮𝐬 𝐲𝐨𝐮𝐫 𝐚𝐝 𝐝𝐨𝐥𝐥𝐚𝐫𝐬 𝐨𝐧. This dictates where you invest in attention. It prioritizes channels, placements, and creative strategies. For Peloton, this is people actively searching for "best home exercise bike", rather than just general fitness enthusiasts. 5. 𝐉𝐨𝐮𝐫𝐧𝐞𝐲 𝐭𝐚𝐫𝐠𝐞𝐭𝐬 → 𝐓𝐡𝐞 𝐬𝐞𝐠𝐦𝐞𝐧𝐭𝐚𝐭𝐢𝐨𝐧 𝐨𝐟 𝐲𝐨𝐮𝐫 𝐦𝐞𝐝𝐢𝐚 𝐭𝐚𝐫𝐠𝐞𝐭 𝐛𝐚𝐬𝐞𝐝 𝐨𝐧 𝐛𝐮𝐲𝐢𝐧𝐠 𝐢𝐧𝐭𝐞𝐧𝐭. This decides when and how you engage. It helps match content to the right moment: brand-building for early-stage buyers, conversion-focused ads for those ready to purchase. For Peloton, this means running educational content for people researching and direct-response ads for those closer to buying. Most companies fail because they collapse these layers into one. The best brands don’t speak to just one audience. They layer these targets to control the narrative and own the market. If your marketing isn’t working, the problem might not be a message problem but a targeting problem.

𝗧𝗵𝗲 𝗼𝗻𝗲 𝗮𝗻𝗮𝗹𝘆𝘀𝗶𝘀 𝗜 𝗰𝗮𝗻’𝘁 𝗴𝗲𝘁 𝗲𝗻𝗼𝘂𝗴𝗵 𝗼𝗳? Customer segmentation by size, industry, and geography. Why? Because when you stop treating all customers the same, you start growing 𝗳𝗮𝘀𝘁𝗲𝗿, more 𝗽𝗿𝗼𝗳𝗶𝘁𝗮𝗯𝗹𝘆, and with fewer 𝘀𝘂𝗿𝗽𝗿𝗶𝘀𝗲𝘀. This analysis is the unlock for: 📈 Smarter growth strategies 💰 Healthier margins 🤝 Happier customers 𝗪𝗵𝘆 𝘀𝗲𝗴𝗺𝗲𝗻𝘁 𝗯𝘆 𝘀𝗶𝘇𝗲, 𝗶𝗻𝗱𝘂𝘀𝘁𝗿𝘆, 𝗮𝗻𝗱 𝗴𝗲𝗼𝗴𝗿𝗮𝗽𝗵𝘆? ✅ 1. Sales & service effectiveness • A $250M CPG distributor in the Midwest doesn’t need or want the same approach as a $7bn manufacturer in Germany. • Segmentation helps you sell and support the right way - for the right customer. ✅ 2. Better strategic & operational decisions • Want to know which customers are high-effort but low-margin? Which industries are expanding the fastest? Which region has the stickiest customers? • Segmentation brings that clarity. ✅ 3. Improved customer experience • Customers don’t expect to be treated equally - they expect to be treated relevantly. • When all your teams understand the nuances of the customer they're serving, retention and satisfaction go up. 𝗛𝗼𝘄 𝘁𝗼 𝗱𝗼 𝗶𝘁 𝘄𝗲𝗹𝗹: 1️⃣ Group customers by: • Size (revenue or headcount) - a useful proxy for complexity • Industry (manufacturing & industrials, tech, services, life sciences & healthcare, CPG, etc.) • Geography (region, market, country) 2️⃣ For each segment, analyze: • Profitability • Support/service effort • Sales cycle and retention • Volumes, expansion or upsell potential 3️⃣ Find your high-leverage segments 4️⃣ Align GTM, finance, ops, and support around them 5️⃣ Refresh regularly - your base will evolve 𝗧𝗵𝗲 𝗕𝗼𝘁𝘁𝗼𝗺 𝗟𝗶𝗻𝗲 • Customer segmentation isn’t just a data exercise. It’s a strategic advantage hiding in plain sight. • When you know who your best customers really are - you build better, sell smarter, and scale faster. #CustomerStrategy #Operations #Finance #Growth #Segmentation #BusinessStrategy #fpanda

Stop lumping your customers into broad categories like age and income. You're missing out on the secret sauce—occasion-based segmentation. Your thrifty weekday customer is the same guy ordering an extravagant pizza and Cola combo on Saturday night. People don't change; the occasion does. Tailor your marketing strategy to occasions, not stereotypes. Imagine a restaurant pushing cheap rice bowls Monday to Friday and going full-throttle with pricey pizza ads on weekends. We did this with Swiggy - two of the brands in my portfolio were Homely (an affordable homestyle meal brand) and The Bowl Company (a premium meal brand). We realised our consumers were pretty much the same people - young professionals who ordered Homely during the weekdays to eat home-style food that was ‘safe’ for the stomach,  and The Bowl Company on weekends for splurging and partying. Switch to occasion-based segmentation, and you won't just see higher sales—you'll understand the fluidity of consumer behaviour like never before. It's not just smart marketing; it's respecting the complexity of your customer. #marketing #marketresearch #business

We keep seeing this on founder pitch decks and outbound campaigns. "We sell to B2B SaaS companies." That's not a target market. That's about 200,000 companies. Here's what a real ideal customer profile looks like. Series A or B, 30-150 employees, product-led or sales-assisted motion, minimum $50K average contract value, less than 12 months of sales-led go-to-market experience, a founder who is still in most late-stage deals. That last part matters most. Because if the founder is still in most late-stage deals, they have the exact problem we help solve. The difference between those two descriptions is not a semantic exercise. It changes your outbound copy, your LinkedIn targeting, your event strategy, your referral asks, and most importantly... your conversion rate. Generic is comfortable. Specific feels risky. But specific is what gets replies. And replies are what become revenue. The narrower you go, the bigger your pipeline gets. Every time.

Last week, I said that AI can’t replace marketing fundamentals. Today, I’ll tell you where AI can actually help: 𝐬𝐞𝐠𝐦𝐞𝐧𝐭𝐚𝐭𝐢𝐨𝐧 𝐛𝐫𝐚𝐢𝐧𝐬𝐭𝐨𝐫𝐦𝐢𝐧𝐠 Let me explain: When I’m working on an unfamiliar category, I might use AI as a bouncing ball. My prompt: What are the possible ways to segment this market? It’ll give me a range of possibilities, likely by: → Company size → Project type (residential, commercial, infrastructure) → Procurement decision-making process → Price sensitivity vs. quality requirements → Order frequency & volume Now I have a starting point. I can decide which angles are worth exploring, then talk to my research partners to validate. This is valuable. AI has compressed what might’ve been hours of whiteboard into minutes. But here’s what AI can’t do: 1️⃣ 𝐊𝐧𝐨𝐰 𝐰𝐡𝐞𝐧 𝐭𝐨 𝐛𝐫𝐞𝐚𝐤 𝐭𝐡𝐞 𝐫𝐮𝐥𝐞𝐬 AI might suggest demographic segmentation for durian buyers. But if you’ve ever worked in this market, you'll know that demographics don't matter - rituals & timing do. 2️⃣ 𝐌𝐚𝐤𝐢𝐧𝐠 𝐭𝐫𝐚𝐝𝐞-𝐨𝐟𝐟𝐬 𝐰𝐢𝐭𝐡 𝐢𝐦𝐩𝐞𝐫𝐟𝐞𝐜𝐭 𝐝𝐚𝐭𝐚 Real-world data is often incomplete / outdated. You need to decide when to stop slicing because too much segmentation can kill scale. 3️⃣ 𝐒𝐞𝐞𝐢𝐧𝐠 𝐭𝐡𝐫𝐨𝐮𝐠𝐡 𝐭𝐡𝐞 𝐧𝐮𝐦𝐛𝐞𝐫𝐬 Sometimes, segments are mathematically clean but strategically useless. Which means that while the segments might look different on paper, they behave the same in the market. And in the real world, business impact > optimised statistics 4️⃣ 𝐒𝐩𝐨𝐭𝐭𝐢𝐧𝐠 𝐭𝐡𝐞 𝐡𝐮𝐦𝐚𝐧 𝐭𝐫𝐮𝐭𝐡 𝐛𝐞𝐧𝐞𝐚𝐭𝐡 𝐭𝐡𝐞 𝐝𝐚𝐭𝐚 Sometimes, a “value seeker” might actually be a “status seeker on a budget” This distinction changes everything - your messaging, your product design and even your pricing strategy. But to recognise this distinction, you need both experience & empathy. AI won’t suffice. * So how do you use AI for segmentation? Use it to: ✓ Brainstorm segmentation approaches you might not have considered ✓ Quickly generate hypotheses to test ✓ Organize your thinking when entering unfamiliar categories DON’T use it to: ✗ Treat the output as your first & final answer ✗ Skip talking to actual market experts ✗ Replace real research & lived market experience * In short, I consider AI to be a great starting point but not an endpoint. Don’t be lazy and think that it’ll do all the heavy lifting for you! ♻️ Reshare this if you found it helpful. 📩 DM me Long Yun Siang if you're working on segmentation and want to leverage the expertise of a real human (I’ve been doing this for 32+ years), DM me. I’d love to help.

Half our marketing budget targeted women 25-34. Our highest converting audience? Men 45-65 buying gifts. Discovered this by accident when analyzing order patterns from last Diwali season. These gift-buying men were completely invisible in our targeting strategy. Weird pattern we noticed: ⤵︎ They never used discount codes ⤵︎ Always chose express shipping ⤵︎ Bought our highest-priced items ⤵︎ Had near-zero return rates Our acquisition cost for this segment was 4X lower while average order value was 3.2X higher. Instead of ignoring this insight, we rebuilt our entire holiday strategy around it: ↗︎ Created "gift concierge" landing pages with curated selections ↗︎ Added gift wrapping and personalized message options ↗︎ Developed email sequences specifically for gift occasions ↗︎ Built lookalike audiences based on this high-value segment These changes increased our holiday revenue by 142% year-over-year while reducing marketing spend by 17%. The most profitable audience segments rarely match your brand's imagined customer avatar. Data reveals who's actually buying, not who you think should be buying. What hidden audience segments are you overlooking?

In 2021 people told me "Adding more data to segmentation is just lipstick on a pig." And they were right. But everyone was missing the purpose of segmentation: 𝗔𝗰𝘁𝗶𝗼𝗻𝗮𝗯𝗶𝗹𝗶𝘁𝘆. Here is a window into what I was thinking circa 2021: Social: Top of funnel, whats their reach and potential? Mobile: Mid funnel, are people walking into stores? Credit card: Bottom funnel, are they cashing in on visits? On their own, these are just signals. 𝗖𝗼𝗺𝗯𝗶𝗻𝗲𝗱 𝗶𝗻𝘁𝗼 𝘀𝗲𝗴𝗺𝗲𝗻𝘁𝘀, 𝘁𝗵𝗲𝘆 𝗯𝗲𝗰𝗼𝗺𝗲 𝗶𝗻𝘀𝘁𝗿𝘂𝗰𝘁𝗶𝗼𝗻𝘀. Not just 𝘪𝘯𝘴𝘪𝘨𝘩𝘵𝘴 — 𝗮𝗰𝘁𝗶𝗼𝗻𝘀: • 𝗪𝗛𝗢 to target → the segments most likely to buy • 𝗛𝗢𝗪 to message → what they respond to emotionally • 𝗪𝗛𝗬 they matter → where to steal competitor's share • 𝗪𝗛𝗘𝗥𝗘 to act → channels & geographies that convert When segmentation answers all four, it’s no longer lipstick on a pig. It’s 𝗼𝗻𝗲 𝗯𝘂𝘁𝘁𝗼𝗻 𝘁𝗼 𝗲𝘅𝗲𝗰𝘂𝘁𝗲 𝘁𝗵𝗲 𝗲𝗻𝘁𝗶𝗿𝗲 𝗰𝗮𝗺𝗽𝗮𝗶𝗴𝗻 — Meta, media, markets. That’s where the rubber hits the road. (Pictured - us but four years younger).

Targeting the right audience is key. Don't waste your ad spend on the wrong people. Smart targeting boosts engagement and conversions. Here are key strategies to help you hit your audience like a sniper: ↳ Define your ideal customer. Build detailed buyer personas. Think about age, gender, location, interests, and pain points. Use surveys and social media insights to gather data. ↳ Leverage advanced targeting options. Platforms like Google Ads and social media have powerful tools. Target by demographics, interests, and geography. Use layered criteria for niche segments. ↳ Utilize lookalike audiences. Target users similar to your existing customers. Platforms can find these people based on shared traits. This increases your chances of engagement. ↳ Retarget for higher conversions. Focus on users who interacted with your brand but didn’t buy. Retargeting keeps your brand fresh in their minds. Encourage them to complete their purchase. ↳ Test and optimize continuously. Try different ad formats, visuals, and copy. A/B testing helps you find what works best. Use observation settings to gather data before full commitment. Optimization tips to enhance your strategy: ↳ Use intent-based targeting. Focus on users actively searching for products like yours. These users are more likely to convert. ↳ Exclude negative keywords. In PPC campaigns, remove irrelevant keywords. For example, if you sell luxury products, exclude "cheap." ↳ Analyze campaign data regularly. Review metrics like click-through rates and conversion rates. Adjust strategies based on performance trends. ↳ Personalize ad creative. Tailor visuals and copy to fit specific audience segments. Younger audiences may prefer vibrant designs, while older ones favor professionalism. ↳ Choose the right platform. Different platforms attract different demographics. Facebook reaches a broad audience. LinkedIn targets professionals. Instagram appeals to younger users. Pinterest is great for creative niches. Benefits of precise audience targeting: - Higher ROI: Your ads reach users likely to convert. - Improved engagement: Personalized messages resonate better. - Cost efficiency: Avoid wasting budget on the wrong audience. - Increased brand loyalty: Connect with the right people for stronger relationships. When you refine your approach and using these strategies, you can create effective paid advertising campaigns. Focus on targeting the right people at the right time for the best results. Remember: Precise audience targeting boosts your ROI. It improves engagement and cuts costs. And connecting with the right people builds loyalty. What are you thoughts about this?

STP in FMCG: Why Segmentation, Targeting & Positioning Matter 🧠📦 In FMCG, growth isn’t about selling more products — 💯it’s about selling the right product to the right consumer in the right way. 💬That’s where STP (Segmentation, Targeting & Positioning) becomes a core growth lever. 🔍 Segmentation: Knowing Who Your Consumer Is 📌Segmentation means dividing a mass market into smaller consumer groups with similar needs, lifestyles, or buying behaviour. 👶 Kids’ snacks rely on bright colours, fun shapes, and cartoon or superhero branding to influence choices. 🌆🌾 Geography matters — urban consumers are more experimental and convenience-driven, while rural consumers are highly price-sensitive, directly impacting pack size and pricing. 🧘♂️ Health-conscious buyers prefer protein, zero-sugar, or nutraceutical products, while 🌱 eco-conscious consumers look for clean labels and sustainable packaging. 🛒 Behaviour also plays a role — heavy users prefer large packs, while first-time or value-seeking consumers opt for sachets and small SKUs. Segmentation ensures brands don’t speak to everyone in the same language. 🎯 Targeting: Focusing Where It Matters Targeting is about choosing which consumer group to serve. 🧬Is the brand meant for Gen Z, millennials, families, or seniors? 🔬Are they value-driven or premium buyers? 🏃🏃♀️Can they be reached better through social media, general trade, modern trade, or e-commerce? 🔥Clear targeting improves reach efficiency, communication clarity, and ROI.🔥 🧩 Positioning: Standing Out on the Shelf ✔️Positioning defines why a consumer should choose your brand. 💰 Best value for money 👶 Trusted for kids 🩺 Zero sugar or health-focused 🔥 Fitness and fat-loss support 🌿 Natural and sustainable Strong positioning is simple, consistent, and visible across packaging, pricing, and promotion. 🚀 Why STP Is Critical in FMCG FMCG markets are crowded and competitive. STP helps brands deliver relevant messages, choose the right channels, optimise pack sizes, and build scalable growth strategies. 💡 Final Thought 🧠Winning FMCG brands don’t try to please everyone. ⭐️They segment smartly, target sharply, and position clearly. #STPMarketing #FMCG #FMCGMarketing #MarketingStrategy #BrandStrategy #BrandPositioning #ConsumerInsights #Segmentation #Targeting #Positioning #GoToMarket #GTMStrategy #ProductMarketing #PackagingStrategy #ConsumerBehavior #MarketingFundamentals #Marketing101 #IndianFMCG #FMCGIndia #D2C #RetailMarketing #GeneralTrade #ModernTrade #Ecommerce #BusinessStrategy #GrowthMarketing #BrandBuilding #MarketingThoughts #LinkedInMarketing