Businesses use customer segmentation to tailor their marketing strategies and messaging to be more relevant. However, the kind of data required to do this can often be confidential, not easily accessible, or require processes and extensive tracking of customers to collect. This is where geographic segmentation comes in handy. The data required is easily accessible, allowing for a good level of customer segmentation.
In this blog, we’ll discuss geographic segmentation, its variables, and how to create geographic segments using Mailmodo.
What is geographic segmentation?
Geographic segmentation is a marketing strategy that involves dividing a target market into small groups based on geographic boundaries or criteria such as country, region, city, neighborhood, or climate. This approach allows businesses to tailor products and services to meet unique needs and preferences of people in different locations.
Variables of geographic segmentation
Geographic segmentation isn’t limited to location only; it also includes other variables that help businesses better understand their audience.
The table below shows variables of geographic segmentation along with an example for each.
| Geographic Variable | Example |
|---|---|
| Region | A clothing brand targeting colder regions with thermal wear and snow gear. |
| Climate | A sunscreen company promoting high-SPF products in sunny, tropical areas. |
| Population Density | A furniture brand offering space-saving modular designs in Japan, where homes tend to be smaller. |
| Location | A sunscreen company promoting high-SPF products in beach towns. |
| Language | A streaming platform offering subtitles in Hindi for viewers in Hindi-speaking states. |
| Local Culture | A chocolate company launching a special Diwali-themed gift pack |
Benefits of geographic segmentation
Geographic segmentation helps businesses in multiple ways. Let's take a look at some of the benefits it offers.
1. Targeted marketing
It also allows them to target specific marketing efforts to specific sections of their target audience depending on which products are going to be the most appealing for them.
2. Cultural relevance
By understanding and catering to local nuances, businesses can make their products and services more appealing to the target audience. This helps brands feel more relatable and build stronger connections with customers, leading to increased loyalty and retention, and an improved brand reputation.
3. Local competition
Geographic segmentation helps businesses assess local competitors and develop strategies to differentiate themselves. By focusing on areas with less competition, companies can personalize their offerings to meet local needs.
4. Optimized product offerings
It helps businesses tailor their products to meet the specific needs of geographic areas. By adapting to local climates, cultures, lifestyles, or economic conditions, businesses can provide solutions that resonate deeply with their target audience. This approach enhances customer satisfaction and drives sales by ensuring products are more relevant and valuable to the consumers they serve.
5. Market expansion
It allows businesses to identify untapped markets and plan strategically to expand in these areas. By understanding the characteristics of these regions, businesses can target high-potential areas for growth and personalize their offerings.
How industries use geographic segmentation
Here are some common use cases where businesses can use geographic segmentation. We’ve listed these use cases based on industries.
1. Ecommerce
Ecommerce platforms use geographic segmentation to create personalized shopping experiences for customers based on where they live. For example, businesses can promote gift items, decorations, and festive clothes when people celebrate Christmas in December.
2. Tourism and travel
Companies in the tourism and travel industry can focus on geographic preferences and seasonal trends to match their offerings according to the needs of people in specific locations. For example, a travel agency can target people in hot regions for trips to cooler destinations to escape the summer heat and target people in cold regions for a trip to the beaches.
3. Food and beverage
Food and beverage brands often adjust their menu or product offerings to cater to regional tastes. This ensures that products resonate with local tastes, increasing customer satisfaction. For example, a fast-food brand might offer spicier options in regions where spicy food is popular or provide vegetarian options in areas where people prefer vegan diets.
4. Real estate
Real estate agencies can personalize their marketing strategies to attract buyers or renters by understanding the preferences and needs of residents in specific areas. For example, in suburban areas, where families with children are more common, real estate agents might focus on promoting family-friendly homes with spacious yards and proximity to schools and parks.
How to create geographic segments in Mailmodo
One of the easiest ways of creating geographic segments is by using a tool. You can use Mailmodo, for instance, to do geographic segmentation depending on the data you have gathered. To create geographic segments in Mailmodo, follow the steps below.
Step 1: Go to the Contacts page, select Create Segment and then choose to start from scratch.
Step 2: Input the segment name, choose the contact list you want to segment, choose dynamic segment and then click on Next.
Step 3: Under conditions, choose User property and then country, city, postal code, etc., depending on the property you want to use to segment them. Then, choose is equal to in the next field and type the name of the location that should match the user property you’ve selected.
You can also set up multiple conditions by using the And and Or options available. We’ve also covered how to create segments in detail in our guide below.
Create and send AMP emails without coding in minutes
Examples of geographic segmentation by brands
Now, let’s check some examples from brands that use geographic segmentation in their marketing strategies.
1. McDonalds
McDonalds launched Aloo Tikki Burger to meet the local tastes and preferences of people who prefer Indian cuisine. It is a perfect example of how the fast-food company adapted its offerings to meet local tastes and preferences.
2. Haribo
Haribo, a German confectionery company, offers gummy bears with beef gelatine for the predominantly Muslim country Turkey. By recognizing the importance of halal food amongst people, the company caters to them by refraining from using pork gelatine in their products.
3. Under Armour
Under Armour, a sportswear company, launched ColdGear, a special line of apparel designed for athletes training in extreme cold weather. This gear provides warmth and comfort, ensuring athletes can perform best even in harsh winter environments.
Athletes can adapt to humidity. They can adapt to heat. They can adapt to altitude, but it’s very difficult for human physiology to adapt to the cold.
-Paul Winsper, VP of Human Performance and Research
4. Airbnb
Airbnb, an online marketplace, uses geographic segmentation to tailor its offerings to travelers' unique preferences and needs in various locations. By promoting location-specific listings, such as beach houses in coastal areas and urban apartments in city centers, Airbnb ensures that its properties resonate with guests' desires.
Conclusion
Using geographic segmentation, businesses can connect with their audiences by tailoring their offerings to local needs and preferences. By understanding the nuances of their target market, businesses can deliver personalized products and services, ensuring a better customer experience. You can learn from the examples that we’ve discussed above and plan your segmentation strategies accordingly. You can also Mailmodo as your go to tool to easily do geographic segmentation and target your audience with interactive emails that are sure to take your marketing efforts to the next level.
