How to Segment Your Market To Increase Revenue

Market segmentation can help make your marketing and sales goals more achievable.

Let’s say you’re a startup SaaS company offering an email marketing service that specializes in cold email outreach. Most likely you’re also trying to optimize your marketing budget for optimum results. That said, you cannot target the mass market in email marketing in general, that would be costly and inefffcient. 

You need to be more focused on your targeting—that is, cold email service for small business startups as a niche or demographic. A very specific segment and service within the email marketing service in general.

Market segmentation helps to focus the company resources on specific consumer groups rather than the mass market, which makes planning campaigns much easier. Marketers may use time, money, and other resources more efficiently by segmenting their customers. 

Furthermore, market segmentation enables businesses to understand their customers. These would allow them to customize campaigns to the client groups most likely to purchase because they have a better grasp of the needs and wants of their customers.

Let’s Define Segmentation

Customer segmentation is the process of creating and dividing  the target audiences into specific groups in order to provide them with personalized content and product, customer journey, web pages, and other marketing tactics. Customers who share particular characteristics are thought to respond best when businesses speak with them in ways that are appropriate for them.

A company usually develops client personas after identifying which customer categories to target. In essence, these are character profiles of customers who fit within a certain customer segment. 

Why Segmenting Your Market is Important

Small firms are constantly seeking low-cost, high-impact approaches. Segmentation usually does the job. By dividing the market into clear specific groups, you can focus your resources on creating the best value for each group. This lets you offer values that are tailored to the needs of each group.

For example, if you’re a fast food restaurant chain, you might segment the market based on demographics such as income, age, and education. Then, you find the most profitable products and services that this group will like and make marketing plans to reach them. 

You could also offer different types of discounts or coupons for customers in these segments. Segmentation is also an effective tool for identifying new markets. For instance, let’s say you’re a restaurant chain with four restaurants in Southern California. 

When you start to segment your market in this area using the criteria we will mention later, you will soon discover other segments in the market that are open for serving such as age and income brackets.

Companies of all sizes use segmentation to divide their potential customers into different groups. These groups may be defined based on factors such as demographics, attitudes, and behaviors. There are different ways to segment your market, but there are also some general guidelines that you should follow. Here are some examples of different segmentation methods.

When you use demographic segmentation, you divide your market into groups based on things like gender, age, income, race, etc. For instance, you could create five different groups based on how much money your customers make per month. Another example is to segment customers based on their age. You can also group people based on their education level or marital status.

By segmenting the mass market, you can easily target the right audience and reach them with the right message. This is how you can reach more people. You can also provide the right product or service to the right person at the right time. 

By segmenting the market, you can make sure that your marketing campaigns are effective. Many small businesses are now adopting new ways of marketing. These new approaches are known as “big data” techniques. 

Segmenting the Market By Criteria

Market segmentation is one of these methods. By using big data, you can segment the market according to demographics, interests, behaviors, and other characteristics. By doing this, you can reach the right customer and create a meaningful relationship with them.

You could then identify the most profitable products and services that will appeal to this particular group and create marketing programs to reach them. You could also offer different types of discounts or coupons for customers in these segments.

How do you increase your revenue by segmenting your customers?

The way to do that is to create content and provide users with online experiences that give them more “wow moments.” To do this, you create content that is made specifically for each segment.

Then personalize content based on customer segments:

  1. Webpages
  2. Videos
  3. Social media 
  4. Paid advertising
  5. Email marketing

What Makes SaturnOne Analytics Unique in Market Segmentation

About segmentation, what differentiates SaturnOne from other tools? What "hard" can it segment that other tools can't?

Segmentation does not work directly with many of the Google Analytics  tools. 

Like SaturnOne can segment by content groups, region groups, customers, leads, lead scoring…any lead or customers data. 

All built in. Other tools do not have this…at least GA does not. 

Only SaturnOne can segment the the more complex tasks faster such as: 

  • Campaign groups
  • Channels
  • Referrers
  • Content groups
  • and country groups

And SaturnOne can segment either through content analysis or conversion analysis. 

How To Do Segmentation in SaturnOne

First, you may want to define your criteria for identifying and targeting your specific market segment. These are some of the parameters that you can use to define your specific market segment for your product or service.

Segmenting customer type: by ICP with content

While narrowing down your audience, you have to answer basic questions such as:

  • Which age range should we target?
  • Which cultural era did these people grow up in, when it comes to media and products?
  • Which part of the world or country are these people most likely to live in?
  • What motivates them to make a certain purchase?
  • What price points are they most likely to go for without straining their wallets?
  • What problem(s) are you looking to solve with this product or service?
  • Can I relate to this market segment?

By revenue

We  all segment our revenues in different ways. This could be by customer type:

  • Large
  • Medium
  • small)

By location:

  • North
  • South
  • East,) 

By services:

  • Buyers of Service A
  • Buyers of Service B

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Now that we have learned how important is the role of segmentation in defining our market, formulating products and services that cater to this particular segment, craft specific marketing campaigns to target the market segment identified, and optimize sales and revenue from this worthy endeavor. 

By following the steps to define the criteria in identifying your target market segment, you can focus your resources, time and money efficiently and increase your chances of success.


1. eCornell: “Segment Customers to Increase Leads, Sales, and Satisfaction”

2. GetFeedback, “How to Segment Your Customers to Grow Revenue”