With geographic segmentation, you can reach the right people, in the right place, at the right time. Imagine seeing an ad on a hot summer day that states that your local store delivers cold drinks directly to your door. Sounds great, right?
At best, geographic segmentation can help a D2C brand to
- Increase product relevancy
- Improve advertising effectiveness
- Gain better insights into the target market
- Create a better customer experience
Want to know how? Keep on reading!
What is geographic segmentation?
Geographic segmentation is a segmentation type that groups people based on their physical locations, such as a city, country, or region. It allows brands to target different wants and needs of customers in different locations, as these may vary drastically between them.
What to consider in geographic segmentation?
In addition to the location, other factors should also be considered in geographic segmentation to provide the best results. Let’s take a look at the 4 most common variables.
Climate and weather patterns affect the market demand for several products. You wouldn’t necessarily have the desire to buy snow boots in the middle of the summer, but when the snow hits the pavement, you are more likely to start looking for them. Seasonal changes are easy to understand and take into account when designing campaigns.
Make sure you are aware of your target region's current weather and consumption habits as there can be differences even within countries. For example, swimwear can be an all-year-round product for some regions and a seasonal product for others.
Cultural preferences should be taken into consideration when addressing your target audience. By being aware of the values and local habits of the target audience, you can make them feel heard and valued.
Similarly, it is crucial to be aware of cultural differences. For example, some colors have completely different meanings in different places in the world.
A cultural group can be considered anything between a country or a small sub-group in a specific region. Every group has triggers that make them buy. Test different triggers and find out which works best for your campaigns.
Are your target customers based in rural, urban, or suburban locations? People in these locations typically have different needs and lifestyles, which can help you choose the best target audience for your campaign.
A couple of notes to consider:
- A densely populated city area has more purchasing power than rural areas
- It is useless to try to sell a lawn mower to someone who doesn’t even have a backyard
Base your marketing efforts on the knowledge of your target audience and focus on the marketing channels they find most appealing.
English is not as universal as you might think - at least in ad copy. Even though English is one of the most widely spoken languages in the world, the primary language of your target audience may lead to better conversions.
On the other hand, you should consider your brand’s positioning strategy, desired associations, and the local attitude towards the English language, to make the right choice of language for your brand.
In some cases using the local language is mandatory. For example, TikTok has determined acceptable languages for its ad creatives and landing pages for all target markets.
How do you know which geographic segment to target?
By mapping the locations of your current customers, you can start analysing which locations are the most lucrative for your business. In the same way, you can analyse where there is no traffic and where new potential customers lie.
How? Start by looking at a map overview of your current customers. By doing so, you can easily identify the regions with the highest conversion rates and similarly, the areas with little to no conversions.
From this visual starting point, you can dive deeper into the customer data. What does the customer profile of your best customer in London or New York look like? What are they buying, what is the purchase frequency, AOV, CLV, and more? Woolman’s AI business management platform Ellis will provide you with all of the most relevant insights.
Use the data of the best customers in your next lookalike ad set to find more champion customers for your business. Furthermore, utilise the data of their favourite products to create appealing ad creatives that convert.
Test, measure, analyse, repeat
In the end, it’s all about testing, measuring, and analysing the results. To find out the best geographic segments for your campaigns, you don’t need to guess, you can test it with data-driven suggestions. With Ellis, you’ll have D2C-optimised dashboards that help you operate, analyse, and predict business. These insights will help you understand your customer and product data and lead you toward the best solutions for your business.