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Marketing without segmentation is a lot like shouting into a crowded room and hoping the right person hears you. Without a clear way to communicate in a noisy marketing environment, your message gets lost in the mix.
With segmentation, you can identify your target audience, speak to their needs, and deliver the right message at the right moment. Companies that use segmentation are 130% more likely to understand customer motivations, resulting in more effective campaigns and deeper audience relationships.
In this article, we’ll break down four of the most effective customer segmentation methods, when to use each, and how Experian’s audience solutions can help.
What is segmentation in marketing?
Segmentation is the process of splitting a large audience into smaller groups that share similar traits, like demographics, location, behavior, or firmographic characteristics. As a marketer, these segments enable you to choose channels, messaging, and offers that resonate with each group.
Whether you’re targeting new homeowners in Texas, loyalty shoppers in retail, or small business decision-makers in finance, segmentation helps you stand out to them and get results.
Why should marketers segment their audiences?
Effective audience segmentation fuels accuracy, performance, and personalization at scale. Here’s why you should invest your time and marketing budget in honing your audience segments.
Maximize your marketing ROI
Nobody wants to waste money talking to the wrong crowd. Using various methods of segmentation, you can focus on those who want to hear from you — and the payoff can be huge. For marketing channels like email, segmentation can drive up to 760% more revenue than non-segmented campaigns. The more targeted your message, the better the return.
Create a unified omnichannel strategy
Segmentation helps ensure that every channel, from email and social media to display, SMS, and direct mail, operates from the same playbook.
Once you define your target audience segments, you also need a trusted identity partner to sync them across platforms and environments. This ensures you can deliver consistent, personalized experiences at every touchpoint and your audience receives the same message in the proper context, regardless of where they engage.
Strengthen customer loyalty
Roughly 75% of consumers are loyal to brands that “get” them. When you strive to understand your customers, they’re more likely to stay. Segmentation enables you to personalize communications based on your target segment’s values, behaviors, or preferences, encouraging repeat business.
Expand into new markets
With segmentation, you can analyze existing customers to identify common traits and use that data to pinpoint similar groups in new regions or markets. For example, if your top customers are middle-class parents in suburban areas, you can target lookalike segments in other cities with tailored messaging.
This makes it easier to expand with confidence, knowing you’re reaching people who are more likely to convert.
Lower customer acquisition costs
Rather than forcing you to cast a wide net, segmentation enables you to focus your budget on high-potential audiences across channels, reduce acquisition costs, and minimize wasted spend on low-intent audiences.
Four segmentation methods and examples
Let’s look at four different methods of market segmentation. We’ll define each, share when to use them, and give real-world examples to help you apply them.
1. Demographic segmentation
Demographic segmentation breaks your audience into groups based on gender, income, age, education, marital status, occupation, and household size. It’s one of the most foundational segmentation methods because it’s easy to implement and often tied directly to buying behavior.
Demographic data makes it easier to get the tone, offer, and channel right from the start. And when you combine demographic segmentation with other segmentation methods, such as behavior or location, the impact multiplies.
When to use it
Use demographic segmentation when your product or service is clearly more relevant to people in a specific life stage, income bracket, or household type.
Among all methods of market segmentation, demographic data is often the easiest starting point. It’s especially effective for industries such as financial services, healthcare, education, retail, and others, where consumer needs change based on demographics.
Examples
As a real-world example, a health supplement company used Experian data to segment its ambassador program audience into four demographic groups based on lifestyle and household makeup. These included younger singles, value-seeking families, high-income spenders, and older empty nesters.
Applying these insights at registration allowed the brand to deliver personalized, channel-specific communications that boosted acquisition and retention. The approach led to stronger engagement and more meaningful customer connections.
2. Geographic segmentation
This method of market segmentation categorizes people by location, including country, region, state, city, zip code, or even climate. It’s a simple yet effective way to tailor your marketing, as location often influences everything from lifestyle and language to shopping habits and product needs. It’s most often used among brands with physical locations or region-specific campaigns.
Whether you’re promoting snow boots in Colorado or sunscreen in California, geographic segmentation helps you stay relevant to the local context.
When to use it
Geographic segmentation is ideal when your offer or message changes depending on climate, culture, availability, or local regulations. It’s also helpful for planning market expansion or testing the performance of different methods of market segmentation across regions.
Examples
One home furnishings retailer partnered with Experian to understand how customer needs varied across store locations. Using a mix of client data and Experian demographics, we segmented stores based on their surrounding customer base, like urban, white-collar shoppers in metro centers versus lower-income households in more remote cities.
These insights enabled the retailer to tailor inventory, marketing strategies, and ad copy for each store type, resulting in more relevant customer experiences.
3. Behavioral segmentation
Behavioral segmentation centers on how people live their lives — their interests, habits, and decision-making patterns. It includes factors like past purchases, engagement frequency, brand loyalty, product usage, browsing patterns, and responsiveness to offers or promotions.
Among all of the segmentation methods, this one provides insight into intent, helping you go beyond who your audience is to understand what they do. You can use behavioral insights to re-engage former customers with relevant offers, reward loyal buyers with personalized perks, or guide high-intent shoppers toward conversion with timely nudges.
When to use it
Behavioral segmentation is best when you want to personalize based on intent, habits, or engagement stage. It’s particularly useful for retention, reactivation, or cross-selling strategies.
Examples
In practice, a national big-box retailer partnered with Experian to better understand customer behavior during grocery store visits. The goal was to identify distinct “trip missions” that could drive category trial and increase basket size. We analyzed everything from basket contents to customer composition and segmented visits into 11 unique missions.
For example, the “All Aisles Online” segment represented large households (often homeowners with families) stocking up on household staples through online orders. In contrast, the “Marketable Mission” segment captured smaller, likely renter households making quick trips for non-essentials.
These behavioral insights empowered the retailer to adjust promotions based on the intent behind each visit, strengthen customer relationships, and drive growth.
4. Firmographic segmentation (B2B)
Firmographic segmentation is like demographic segmentation for businesses. It groups B2B audiences based on attributes such as annual revenue, location, company size, industry, and organizational structure. You can also segment by job title or decision-maker role to better target key stakeholders.
This method is great for aligning your messaging, sales strategy, or product offerings with the unique needs of various business types. A startup in the tech sector will likely respond to a very different pitch than an enterprise manufacturer, and firmographic data helps you speak to both with precision.
When to use it
Use firmographic segmentation when marketing to other businesses, especially when your product or service has different benefits depending on business size or sector.
Examples
Recently, a B2B client partnered with Experian to gain a deeper understanding of the revenue potential of their existing business customers. Using firmographic data, we segmented the client’s customers into distinct groups based on the characteristics most strongly tied to spending behavior.
For each segment, we calculated potential spend, defined as the 80th percentile of annual spend within that segment. This allowed the client to identify high-value accounts with untapped growth potential.
For example, one customer, ABC Construction, had spent $4,750. But based on their segment’s profile, their annual potential was $9,000. That insight revealed a $4,250 opportunity to deepen the relationship through more targeted marketing and sales efforts.
Best practices for market segmentation
Regardless of the segmentation method you use, the following best practices will help you maximize the benefits of your efforts.
Start with clean, reliable data
Segments are only as good as the data behind them. If your data is outdated, inaccurate, or incomplete, your segments will result in ineffective targeting and a wasted budget. Utilize accurate, compliant, up-to-date sources like Experian Marketing Data, ranked #1 in accuracy by Truthset, to ensure your targeting is on point.
Test and refine segments continuously
Business goals, market conditions, and behaviors are constantly changing. What worked last month or even last week might not work today. By adjusting your segments over time, you make sure your marketing stays relevant, focused, and effective. Use A/B testing, performance metrics, and audience analytics to iterate on your segments and improve results over time.
Align segments with personalized messaging and offers
Each segment has distinct needs, preferences, and motivations, which means generic messaging won’t resonate effectively. Once you’ve built your segments, personalize your creative, copy, and offers to appeal to each group and increase the likelihood of engagement and conversions.
Integrate segmentation across all platforms
If someone sees one message in an email and a completely different one in an ad or on your website, it creates confusion and weakens trust. From CRMs and email platforms to ad tech and analytics tools, make sure your segmentation method is applied consistently across every channel to improve performance and build a cohesive brand experience.
Segment your audiences with Experian
Effective audience segmentation is at the heart of every successful marketing strategy, but in this fragmented, privacy-conscious landscape, grouping your audience into meaningful, actionable subgroups is more challenging than ever. That’s where we come in.
With coverage of the entire U.S. population, Experian helps marketers define and categorize broad audiences into precise segments using rich data on demographics, behaviors, financial profiles, and lifestyle traits. These insights make it easier to personalize messaging, optimize media spend, and drive better outcomes.
From ready-to-use syndicated audiences to custom segments and even Contextually-Indexed Audiences that align targeting with content, Experian offers flexible segmentation solutions that perform across digital, TV, programmatic, and social channels.
In our most recent release, we introduced over 750 new and updated audience segments across key categories, including a brand-new category for Experian, giving marketers more accurate, behavior-based targeting options than ever before.
- 135+ new CPG audiences, a brand-new category for Experian, built from opt-in loyalty card and receipt scan data
- 240+ new automotive audiences covering ownership and in-market shoppers
- 100+ new high-spending behavior audiences focused on specific merchant categories
- 24 new wealth and income segments with refined household net worth tiers
- 13 new lifestyle-based housing audiences for family- and household-focused targeting
- 250+ refreshed financial segments with improved naming conventions for better discoverability and clarity
Together, these segments give marketers more accuracy to reach high-intent consumers based on real-world behaviors, spending patterns, and financial capacity.
Audience solutions powered by consumer insights
Experian Marketing Data, one of the most comprehensive and accurate consumer databases in the U.S., is the core of our segmentation capabilities. Backed by over 5,000 demographic and behavioral attributes, it helps you understand not just who your customers are but how they live, shop, spend, and engage, too.
Each audience segment is built with privacy and precision in mind, using a blend of demographic data, financial behaviors, lifestyle signals, and media habits. With these consumer insights, we’ll help you uncover meaningful patterns that lead to smarter strategy.
Experian’s pre-built audiences
Our syndicated audiences are pre-built, ready-to-activate segments based on shared characteristics from age and income to purchase behavior and lifestyle indicators. When speed and scale are a priority, these segments offer a fast, effective way to reach your target audience.
Experian’s 2,400+ syndicated audiences are available directly on over 30 leading television, social, and programmatic advertising platforms, as well as within Audigent for activation within private marketplaces (PMPs).
Here’s what’s new from our August 2025 release:
- CPG shoppers by category (e.g., Frozen Food Shoppers, Multi-Vitamin Shoppers)
- Luxury EV owners and auto brand shoppers (e.g., Rivian, Polestar, Cadillac)
- High spenders in specific categories (e.g., men’s grooming and women’s accessories)
- Ultra high-net-worth households (e.g., Net Worth $50M+) and likely home sellers
- Young Family Homeowners and Growing Family Apartment Renters
Custom audiences for specialized targeting
Need a custom audience? Reach out to our audience team, and we can help you build and activate an Experian audience on your preferred platform. Additionally, work with Experian’s network of data providers to build audiences and send to an Audigent PMP for activation.
Contextually-Indexed Audiences
Experian’s Contextually-Indexed Audiences offer a privacy-safe way to reach relevant consumers in the moments that matter without relying on identity signals or third-party cookies. These segments combine Experian’s consumer insights with page-level content signals, enabling you to align targeting with intent and mindset, even in cookieless or ID-constrained environments.
Want to take your segmentation strategy to the next level? Let’s talk. We’ll help you define your audience in ways that drive real results.
Talk to our team about your segmentation methods today
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Audigent, a part of Experian, now offers turnkey, outcome-driven deals for brands through Amazon DSP, expanding advertisers’ options for advertising across the open internet. While buyers continue to activate through established supply paths with Amazon DSP, this collaboration introduces sell-side curation that expands data access and reduces overall buyer costs. Three paths to activation With Audigent's curation services now available through Amazon DSP, buyers have streamlined access to premium open-internet inventory and measurable results. Advertisers now have three simple ways to build or tap into curated deals: Off-the-shelf deals in Inventory Hub on Amazon DSP Buyers can access hundreds of pre-built curated deals, each designed to align with common campaign goals and accelerate time to market. Custom deal libraries built around KPIs Advertisers can work directly with Audigent and Amazon Ads to build tailored deal libraries that reflect their unique performance objectives. SimplePMP with AI-driven intelligence Audigent's proprietary AI technology powers its SimplePMP product, offering advertisers sophisticated segment recommendations to identify relevant audiences and inventory with enhanced accuracy. Data that drives performance Turnkey curation only works if the data behind it is immediate, precise, and actionable. With Audigent providing curation via Amazon DSP, each deal fuses premium, real-world signals with hand-picked inventory so every impression can move the needle. How turnkey curation works Here are three ready-made examples to spark ideas 1. Weather in real time When the temperature climbs above 85°F, a beverage brand’s “Hot-Day Hydration” creative can launch automatically. Twenty-four hours before a heavy-rain forecast, big-box retailers can push “Storm-Ready Supplies” for generators and batteries. Weather-triggered audiences from The Weather Company mean you buy only when conditions drive demand. 2. Moments that matter to fans Live Nation ticket-purchase signals that pinpoint two peak travel-booking windows—right after fans secure out-of-town concert or game tickets and again during the week leading up to the event—so airlines, online travel agencies, and hotels can serve timely seat-sale or last-minute lodging offers when intent (and conversion rates) are highest. 3. Intent you can see Bombora B2B signals surface companies researching topics like “zero-trust security” or “cloud cost reduction.” A cybersecurity SaaS can reach those accounts with demo ads, and an office-furniture brand can court firms exploring “hybrid-workspace redesign.” Media spend zeroes in on buyers already in-market. A customer-centric approach Audigent delivers turnkey, customer-centric solutions across the open internet through Amazon DSP, prioritizing quality over quantity through premium web inventory. As buyers and sellers embrace more direct, transparent, and addressable supply paths, this streamlined approach boosts efficiency and drives meaningful outcomes for brands. Interested in trying this new path with Amazon Ads and Audigent? Email: audigent_sales@experian.com. What's next? Audigent is committed to enhancing our curation services available through Amazon DSP. We're focusing on: Expanding our suite of turnkey solutions to address evolving advertiser needs in the open internet space Developing new data-driven insights to further refine audience segmentation and inventory selection Continuously improving our technology to deliver even greater value and efficiency for advertisers As the advertising landscape evolves, Audigent will continue to innovate, ensuring our offerings complement and enhance the capabilities available through Amazon DSP. Ready to cut supply path costs? Connect with us to design your first curated library Latest posts
Marketers aren’t thinking in channels anymore: they’re thinking in audiences. As consumer media habits have scattered across devices, platforms and formats, brands have shifted their focus from managing one channel at a time to delivering a connected experience. That’s the core of omnichannel marketing: meeting people where they are and making each touchpoint feel like part of a larger narrative. However, most brands still encounter the same roadblocks: siloed data, fragmented planning and tools that don’t integrate. And while the industry talks a great deal about omnichannel marketing, few are actually doing it well. The brands that figure it out won’t just reach more people; they’ll improve brand perception while improving the customer journey, achieving better outcomes, and optimizing their media spend more efficiently. Learn more about this trend in our 2025 Digital trends and predictions report. Learn more Why omnichannel is no longer optional Omnichannel marketing has long been a goal, but recent shifts in media and technology now make it a necessity. According to Forrester, 21% of global B2C business and tech professionals identified enhancing omnichannel or cross-channel customer experiences as a top priority for their organization today. Connected TV (CTV) and commerce media networks are emerging as dominant channels, necessitating the coordination of messaging across an expanding ecosystem of streaming, programmatic display, and commerce-driven environments in addition to the multitude of other addressable (and non-addressable) channels. Fortunately, identity solutions continue to evolve, enabling marketers to maintain audience addressability in digital channels even as traditional signals decline and privacy regulations intensify. Consumers expect this kind of cohesion. They don’t see “channels" – they just see a brand. A member of your loyalty program might browse a product online, see the exact item later on their socials, and then receive an email offer. If those messages feel disconnected or out of sync, this will not be a good customer experience, and a brand risks wasting impressions and losing conversions. Omnichannel isn’t about showing up in more places. It’s about showing up with a consistent message. The opportunities inherent in true omnichannel execution Despite the industry’s movement toward omnichannel marketing strategies, there are a few untapped opportunities brands would benefit from pursuing. Break down planning silos to optimize performance Many marketers still plan and measure media in silos: programmatic display, CTV, commerce media, search, social, email, SMS, and each might have their own budgets, strategies, and KPIs. This disjointed approach leads to inconsistent messaging, inefficient spend, and overexposure or underexposure to key audiences. The opportunity? 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Invest in interoperable systems that give you control over your data and privacy-safe solutions like clean rooms or universal IDs that enable consistent audience activation across platforms. Advocate for a unified identity framework Audience data remains fragmented: commerce media networks control shopper data, TV platforms hold viewership data, and walled gardens provide limited data transparency and determine which data they will share, making it difficult to recognize, reach, and follow the customer journey across digital touchpoints. Without a unified view, campaigns remain disconnected and cross-channel attribution is difficult. The opportunity? Advocate for a centralized, privacy-conscious identity framework that bridges fragmented data sources. This would allow marketers to recognize consumers across platforms and deliver cohesive messaging. Marketers need solutions that enable connected audience activation while respecting privacy requirements and platform-specific constraints. Without this, omnichannel remains an aspiration rather than a reality. Data and identity: The tools you need in your toolkit to make omnichannel work Implementing omnichannel right starts with establishing identity. Brands need a foundation that lets them connect the dots: across data, platforms and channels. Here’s how: Build a unified identity foundation “A single view of the customer is the foundation of a successful omnichannel program,” says Forrester in a December 2023 report on omnichannel. This begins by connecting disparate data sources, including persistent offline information, such as addresses, emails, names, and phone numbers, with digital signals, in a privacy compliant way. And this, in turn, creates a strong identity foundation. Solutions that integrate hashed email addresses (HEMs), mobile ad IDs (MAIDs), IP addresses, CTV IDs, and universal IDs enable brands to resolve customer identities across different platforms, ensuring that campaigns remain addressable as users transition between channels. Activate audiences everywhere, without the hassle Brands should be able to define an audience once and activate it across all addressable channels without unnecessary complexity. Interoperability between demand-side platforms (DSPs), supply-side platforms (SSPs), clean rooms, and private marketplaces (PMPs) ensures that high-quality audiences are matched with premium inventory in a targeted, transparent, and efficient manner. This connectivity helps maintain consistent audience targeting—even as consumers engage in different environments. By working with a partner that seamlessly integrates with major platforms, marketers ensure that data quality and identity resolution remain intact throughout campaigns, avoiding data loss that occurs when data is transferred between different, disparate platforms. Measure across channels, and the customer journey Effective omnichannel marketing isn’t just about reaching audiences—it’s about understanding how different touchpoints contribute to conversions. Advanced attribution models, incrementality testing, and cross-platform frequency management enable brands to use consistent identity across campaign planning, activation and measurement so they connect ad exposures to real-world outcomes. Achieving this requires a strong identity resolution partner—one that can unify audience data across environments and power accurate, privacy-compliant measurement at scale. The future of omnichannel marketing Omnichannel is becoming the baseline expectation for modern marketing. The brands that figure out how to connect the dots across the increasingly disparate media landscape will drive better performance and build stronger customer relationships. By working with a partner that can offer you an end-to-end data and identity solution focused on consumers, not channels, you can better understand your best customers (and your next customers), reach them across channels, and measure cross-channel campaigns more effectively, making true omnichannel execution more achievable. Get started today About the author Kimberley Klevstad Account Director, Retail, Experian Kimberley Klevstad is 25-year industry veteran with a wide range of experience driving strategic growth for global accounts across print, online, mobile, location-based and streaming audio platforms. Kimberley is currently a member of the Experian Marketing Services Retail team, advising top retail brands on data and identity strategies that will deepen loyalty and drive acquisition in an increasingly competitive landscape. Latest posts
Audigent, a part of Experian, is excited to announce that curated audience and contextual inventory packages are now accessible on Google Display and Video 360 (DV360), delivered via Index Marketplaces. These premium deals offer industry-leading targeting solutions, combining high-quality data and inventory to enhance scale, value, and performance across connected TV (CTV), display, and online video (OLV). The integration launches with over 250 ready-to-run deals covering various sectors, including some available for DV360 buyers for the first time, such as automotive, B2B, seasonal retail, sports fandom, travel, and weather, among others. Each deal combines exclusive audience data with premium inventory under a single DV360 deal ID. The supply-side activation lets you scale campaigns without cookies or device IDs, so results stay consistent even as traditional tracking disappears. "We’re excited to expand Audigent’s curated, data-enriched packages in DV360 with Index Exchange. Putting Experian’s audiences and Audigent's premium supply inside a single deal ID accelerates smarter decisions for marketers—letting brands activate, test, and see results right away.”Chris Feo, Chief Business Officer, Experian Why these packages stand out Unique targeting and supply packages Each package fuses exclusive data with handpicked inventory and ships as a single, ready-to-trade deal ID. Deep partner bench Audiences are sourced from first-party publisher data as well as data leaders such as Experian, Affinity Answers, Acxiom, Bombora, Circana, Dun & Bradstreet, Resonate, Sports Innovation Lab, The Weather Company, and more, providing buyers with deterministic purchase, intent, behavioral, and lifestyle signals in one flight. Future-proofed addressability Packages rely on Audigent’s identity framework, contextual intelligence, and supply-side data activation rather than third-party cookies or device IDs, keeping reach intact as identifiers fade. Three reasons these packages drive results Signal-agnostic reach: Cookieless, device-less targeting preserves scale today and tomorrow. Instant activation: Traders simply add the pre-curated deal ID to a DV360 line item and go live in seconds. Built-in quality assurance: Exclusive audience data is paired with hand-vetted inventory, so you start closer to KPIs from day one. Direct-to-source media buying that pays off By packaging curated, data-enriched deals directly atop Index Exchange, via the Index Marketplaces platform, Audigent eliminates extra hops and integrates premium partner data into a single price, with no additional data management platform (DMP) fees. That means higher match rates, simplified audience management, and a cleaner, greener path that concentrates spend on top-tier publishers. Paired with Index Exchange’s omnichannel reach, brands see stronger performance and lower waste, no trade-offs required. 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B2B account growth Target decision-maker employees at companies segmented by employee count: 11–50, 51–250, or 251+, using Dun & Bradstreet’s data. Or reach small business professionals and business decision-makers via deals utilizing Bombora’s data assets. Sports fandom Engage verified MLB fans based on purchase behavior, powered by Sports Innovation Lab. Extend reach to contextual sports content, including live sports and sports-related programming across CTV and OLV. Seasonal retail bursts Engage gift-givers and in-market segments for gifts and occasions. Target DIY home improvers and verified affinity audiences for home projects. Reach back-to-school families by targeting parents preparing for the school year with Affinity Answers’ event-based segments. Weather-driven behavior Activate campaigns based on how real-time or forecasted weather conditions (like sunny days, outdoor activity suitability, or severe weather alerts) influence mindsets and decisions, powered by The Weather Company's data. "This collaboration integrates The Weather Company’s industry‑leading weather forecast data into DV360, the world’s largest buying platform, enabling real‑time relevance through curated deals. Experian contributes deep expertise in consumer audiences, The Weather Company delivers unmatched precision in timing and location, and Index Exchange adds efficiency and transparency – together creating a streamlined, turnkey solution for activation." Dave Olesnevich, VP of Data and Ad Product, The Weather Company Ready to activate? Search Audigent in DV360’s Marketplace, select the Audigent package that fits your KPIs, and add the deal ID to your line item. Prefer a custom build? Reach out to us at partnershipsales@experian to curate a package tailored to your campaign goals. The quickest path to performance is just one deal ID away. Contact us now Latest posts