How to Use Segmentation in Your Video Strategy?
By now, most marketers and business owners already know of the positive effects explainer videos have on a marketing campaign. But what still eludes a lot of people is how to create an effective on-brand video that maximizes ROI. One of the often neglected ways to do that is to segment your audience. Market segmentation allows you to identify different groups of target customers in a way that will help you understand them better. This way, you can create personalized, hyper-specific campaigns. These are much more likely to produce success. It also presents you with the data to determine which campaign generates the most revenue.
Why use market segmentation?
Here’s an example: every SaaS business needs an explainer video, but the pain points of a B2B company are very different from those of a B2C. A business-to-business start-up that sells ERPs for healthcare professionals faces challenges that are different than a collaboration tool for graphic designers. By segmenting out potential clients, we strive to get to know the specific pain points of every individual group, which helps us come up with tailor-made solutions. Averages can be misleading and without proper segmentation, you might run the risk of making the wrong strategic decisions for your video campaign.
How to use segmentation effectively?
Proper market segmentation depends on your business model, your product, your metrics, and your goals. It can be as simple or as complex as you want, but you need to decide which type is the most effective for you. The four basic segmentation categories are Demographic, Psychographic, Behavioral, and Geographic. While those categories are incredibly useful, the perfect video strategy will probably require a more in-depth look into your audience groups.
For example, if your goal is customer retention, useful segmentation criteria might be something like:
- At-risk of canceling. The rate at which your clients cancel their subscriptions (also called a churn rate), is a good metric to separate those who need more convincing to renew their subscription.
- Unprofitable customers – the ones that are low in value for your business, but cost you a lot to maintain. Identifying this group of people can help you turn things around and make them profitable.
- Profitable customers – the ones that have the highest lifetime value.
- Product/service advocates – the most valuable segment, who will support you and recommend you. It’s important to nurture them as they are not only loyal in the long term, but can also refer others.
Market Segmentation in Video Strategy
By separating your audience segments, you can develop a great video marketing strategy and target segments that are worth investing in. Imagine that you wish to focus on your product advocates. You know that showing appreciation to this part of your client base will help build a positive brand reputation. It will also strengthen your company’s relationship with your most loyal clients. After you identify this segment, you can produce a video directed specifically at them and their unique pain points and desires.
Or maybe you want to address the objections people on the verge of canceling their subscription might have. Why not produce an amazing video addressing their doubts head-on. Help them feel assured enough in your services and care to renew.
This is just one type of segmentation that caters to a specific goal – customer retention. If your goal is to increase new leads, you might want to go in a different direction. Like segment people according to (for instance) state in their customer journey. The tactics you would use to raise awareness for people who’ve never heard of your product will be completely different from the ones you’d utilize for those at the decision-making stage.
Market segmentation data allows you to refine your video’s message. Building customer profiles of your various segments will help you find the specific language to address each group effectively through explainer video. This will lead you to maximize your results and increase ROI. This doesn’t mean you have to get a separate video for each segment that you have defined. However, when you are ready to create one for your business, you need to know which specific segment you’re addressing in order to get the best out of it.