With app user segmentation, app users will get more personalized content and a better user experience. This can ultimately improve user retention and the overall performance of the app.
Are your app marketing messages and push notifications sending irrelevant information to your customers? Or are you engaging your audience in effective, targeted ways?
Assume your marketing messages are inappropriate for your target audience segments. In that case, you could spend a small fortune on advertising to get app downloads, only to turn your customers off with a lack of relevance and respect for their interests and needs.
Learn how to use app user segmentation to enthrall your app users, avoid uninstalls, improve customer engagement, and increase long-term customer value.
You'll dive into the following topics:
Consider how you can divide members of any target audience into groups with similar characteristics to understand app user segmentation.
Here are a few examples of user groups:
In-app purchases may require encouragement for new users. This motivation could take the form of offering an unbeatable deal. For example, to level up a gaming experience by purchasing discounted digital assets or trading points.
A heavy user, on the other hand, may already have a long history of making in-app purchases and may be more willing to make a larger in-app purchase to add some special game features to their collection.
Knowing what to offer different types of users is a highly efficient way of improving user experiences and potentially increasing revenue.
A common segmentation method divides users into two groups: paying app users and new app users who have downloaded the app but have yet to make an in-app purchase.
Most app developers prioritize converting free users into paying customers. However, it would be preferable if you tailored your marketing efforts to your users' specific needs, avoiding alienating any potential paying customers.
Assume your target audience is diverse in terms of gender, age, and location. Perhaps your product is best sold as an in-app purchase by singles in a metropolitan area.
Appropriate targeting of these users through app user segmentation would identify the subset of the total app audience who are single, as well as those in that subset who live in large cities.
A Venn diagram of the target audience, which is a set of overlapping circles, is a common method for depicting segmentation.
For instance, one large circle (A) could represent the target audience of all potential app users. A smaller circle (B) may contain the singles in circle A's target audience. This group includes both singles who have used the app and those who have not.
Another smaller subgroup could be circle C, which includes users who are single and live in big cities. Circle D could be singles in big cities who haven't downloaded the app yet, which is your specific target audience for an ad campaign.
Each circle in the Venn diagram represents a characteristic or criterion, with each segmented group representing those characteristics where the circles overlap.
The process of locating a sub-group within a sub-group is known as "drilling down." This process, when repeated several times, may help to fine-tune the ultimate target for an app marketing campaign.
App segmentation allows you to better understand your customers' needs and provide highly relevant content. Customers have high expectations for app experiences, including increased personalization that enhances the user experience.
The following are some of the advantages of app user segmentation:
Some of the major criteria for app user segmentation include:
1. Behavioral
Behavioral segmentation is determined by what you do or do not do. Spending and saving habits, credit card use, search history, bookmarks, software features, and session frequency or duration are all examples.
2. Economic
This category focuses on the lifetime value of a customer (LTV). Is your customer a first-time user? Has your customer previously made a purchase? Is there a chance for a referral to close another sale or upsell? Is the customer a frequent user in the segmented group that generates the most revenue?
3. Demographic
Age, gender, nationality, income, marital status, education, occupation, and other demographics may be included.
4. Geographic
Geo-location can target specific areas by utilizing the global positioning system (GPS). Country, state (or province), city, town, suburb, neighborhood, and even streets can be geo-targeted. Localization, such as presenting content in the language of the targeted area, is a common application of geographic segmentation.
5. Technographic
Do you prefer a Mac or a PC? Do you own a phone that runs the Android operating system or an iPhone? Answers to questions like these contribute to the development of your technographic profile, which includes your preferred hardware, software, and mobile devices.
6. Cultural
The "wow" and "cool" factors are included in cultural segmentation. When a customer or potential customer is pleasantly surprised by the added value of a product or service, this is known as the wow factor.
The cool factor refers to how users believe they will appear to others after using a product or service.
A sophisticated uptown style, for example, or a fresh street vibe are two examples of cultural segmentation.
7. Psychographic
This segmentation category concentrates on personality traits, areas of interest, hobbies, values, and various personal attitudes. Brand awareness often depends on psychographic segmentation.
Here we talked about 4 best practices for user app segmentation:
It is critical to collect data and solicit feedback from customers in order to better understand them. Having as much useful information about your customers as possible will help your app marketing efforts. Collect this information in a way that respects privacy while also being beneficial.
Many businesses create fictitious profiles of their best target customers. You want to know who your users are, where they're from, and why they're downloading and using your app.
What are your customers' aches and pains? Is your app designed to alleviate your customers' pain and solve a specific problem?
Segmentation management
According to conventional wisdom, 3 major segmentation characteristics are usually sufficient to identify the majority of users you want to target. Using more than 3 characteristics may be detrimental.
Goals
You will develop goals for each group after identifying the segments. These objectives must be measurable, such as persuading a customer to download your app or make an in-app purchase.
The objectives must also be easily measurable, such as counting the number of downloads or totaling the sales. Furthermore, the objectives must add value to your brand.
Optimization
Segmentation optimization is achieved by testing and re-testing segmentation parameters and monitoring key performance metrics for each segment (KPIs).
After perfect app user segmentation, app users will get more personalized content and a better user experience. This can ultimately improve user retention and the overall performance of the app.
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