In this article…
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
Latest posts
When we launched our data marketplace earlier this year, we set out to transform how the industry discovers and activates privacy-safe audiences and maintains addressability across display, mobile, and connected TV (CTV). Yieldmo was one of the first adopters and their story speaks volumes about what’s possible when flexible tech meets premium data. Large retail brand boosts in-store traffic with Yieldmo and Experian Yieldmo, an advertising platform known for its inventive, AI-powered creative formats and privacy-first inventory, partnered with Experian to support a leading athletic retailer’s campaign focused on driving in-store traffic. The goal? Attract in-store shoppers likely to purchase from competitors, particularly during key sales windows. Using Experian’s Audience Engine platform, which includes our proprietary and third-party data marketplace, Yieldmo built a high-performing, self-serve targeting strategy that included both conquesting and in-store shopper segments. With the ability to easily combine Experian Audiences and Partner Audiences, like those from Alliant, Circana, Webbula, and Sports Innovation Lab, Yieldmo quickly built precise apparel and footwear audiences. Using Experian’s identity graphs in Audience Engine, Yieldmo increased cross-channel addressability to maximize campaign scale and impact. “Experian’s data marketplace in Audience Engine fills a critical gap, letting us quickly search by brand, build smarter conquest segments, and activate custom audiences fast. The platform is flexible and the support is hands-on and reliable.”Abby Littlejohn, Director of Sales Planning at Yieldmo With self-serve setup that cut down manual work, the ability to build highly tailored audiences, and expected lift in store visits, Experian helped the team achieve standout results. "We selected Experian as our primary third-party data partner based on contract ease, audience quality, and speed. Through Experian, we can find high-performing audiences from multiple providers that meet our client’s targeting objectives. We include Experian audience segments in 80% of formal RFP proposals and are in active discussions on how to optimize for future campaigns—making Experian a go-to partner for third-party targeting.”Nelson Montouchet, AVP, Strategic Partnerships, Yieldmo More data, more reach: Experian’s data marketplace fuels smarter targeting across ad platforms Today, just months after launch, Experian’s data marketplace is gaining traction across the ecosystem. Over 10 platforms, including leading supply-side platforms (SSPs) and TV platforms such as Madhive, OpenAP, and Optimum, are now actively utilizing our data marketplace to enhance their activation capabilities. As privacy rules tighten and many identity signals start to fade, a lot of activation platforms are finding it tougher to reach their audiences. This is where our data marketplace shines, with one of the most comprehensive identity graphs out there, 126 million households, 250 million individuals, and over four billion active digital IDs, we make it easy to activate audiences while keeping addressability high across channels. We preserve accuracy when scaling to digital IDs via our identity graphs since Experian is rooted in offline data, which provides better connections and smarter targeting. “Our long-standing partnership with Experian and breadth of Experian's data marketplace, combined with the interoperable, direct matching methodology of our Open Identity solution, make it possible for OpenAP to enable advertisers and agencies to use best-in-class data partners to build audiences with the highest fidelity and consistently reach audiences at scale wherever they are consuming content across premium video.”Chris LoRusso, Chief Business Officer at OpenAP Experian’s data marketplace has grown to include over 20 premium data providers, such as: “We’re thrilled to bring PlaceIQ’s privacy-first, visit-based audiences to Experian’s marketplace, giving brands quick and easy access to high-intent shoppers. From recent big-box customers to yoga-studio regulars, advertisers can add real-world relevance to campaigns across every channel.”Brian Bradtke, Head of Partner Development, Precisely PlaceIQ These partnerships bring unique value to platforms looking to understand and engage audiences more effectively, whether through physical location intelligence, sports and fandom insights, or behavioral intent signals. What’s next We're focused on expanding our data ecosystem and helping platforms and marketers turn fragmented data strategies into a unified competitive advantage. If Yieldmo’s story is any indication, this is just the beginning. Let’s connect and explore how Experian’s data marketplace can help you drive more revenue, scale your audience reach, and stay ahead of privacy shifts. Connect with us Latest posts
Gaming companies sit at a unique crossroads: they’re part entertainment powerhouse, part tech platform, part media company. Whether you’re publishing blockbuster titles, running a mobile game network, or building immersive in-game ad experiences, you have access to vast amounts of player data—and massive potential for growth. What's standing in the way of growth and loyalty Video game publishers and platforms are increasingly turning to data to understand, engage, and retain their players. But that’s easier said than done. Here are the top challenges they face: Data lives in silos. Gaming companies often collect data across multiple platforms—console, PC, mobile—but can’t stitch together a full view of the player across devices and titles. Identity is hard to resolve. Players interact across games, apps, websites, and platforms. It’s tough to connect all those signals and create a consistent, personalized experience. Privacy is non-negotiable. Regulations are tightening. Any solution must not only be powerful—it must be privacy-safe. Ad performance is difficult to measure. It’s often unclear which campaigns are driving engagement, conversions, or purchases—especially across fragmented digital touchpoints. How Experian can help you win with data and identity Experian helps gaming companies stop leaving value on the table. We turn scattered player data into a single, unified view—giving you the foundation to better understand and engage your players. Our approach: Organize, enrich, activate 1. We clean and unify your data We help you build a solid identity foundation by resolving messy, duplicate, or outdated records across systems. That means your player data from mobile, console, PC, and web all connects—giving you a clear view of how your users engage across games and platforms. 💡 How it’s working: A global interactive gaming company is partnering with Experian to unify and enrich player profiles across systems—boosting the performance of both player engagement campaigns and in-game monetization strategies. 2. We deliver deep customer insights With Experian, you go beyond surface-level data. We help you understand player behaviors, financial attributes, interests, and lifestyle factors—fueling more personalized experiences, smarter segmentation, and better monetization strategies. 💡 How it’s working: A major game developer used Experian’s data enrichment tools to gain deeper insights into player behavior and financial attributes—enabling more personalized in-game offers, smarter audience segmentation, and stronger player retention. 3. We enrich profiles and help you activate across channels We enhance your player records with hundreds of attributes—so you can create custom segments that work. Then, we help you activate those audiences in real-time across digital, social, and programmatic platforms. 💡 How it’s working: A global gaming publisher used Experian to build custom audiences and activate across programmatic channels, driving higher in-game engagement and ad ROI. Turning audiences into ad revenue In addition to improving their own player marketing, gaming companies are unlocking a second growth engine: ad revenue from non-endemic brands. Much like retail media networks, game publishers and platforms are realizing the value of their audience data. From airlines and automakers to QSR and CPG brands, advertisers are taking notice of the high-value, high-intent audiences inside game environments. But to attract that ad spend, publishers need to offer more than impressions—they need precise audience targeting, cross-device identity, and reliable measurement. How Experian helps drive better ad performance To appear authentically to a gamer, you need to know who they are and what they care about. Experian helps marketers understand a person’s behaviors and preferences to enable relevant, personalized advertising. And since nobody wants to see the same ad ten times during a session, we help manage ad frequency across devices and placements to protect the player experience. Our approach: Extend reach, measure results 1. We expand your digital reach Experian makes it easier to find and connect with your players wherever they are—across devices, platforms, and publishers. We help you build scalable audiences you can reach programmatically and with precision. 💡 How it’s working: Unity, a leading gaming platform, is redefining the way marketers reach their audiences across major and emerging channels. They’ve tapped into Experian’s syndicated audiences to gain player insights and help advertisers connect with gaming audiences across mobile, web, and connected TV (CTV) based on behaviors and preferences. 2. We help you measure what matters Whether your goal is app installs, in-game purchases, ad engagement, or player retention, we help connect the dots. You’ll know which campaigns are driving action—and where to double down. 💡 How it’s working: A leading global game publisher is working with Experian to enrich player profiles, build and activate audience segments, and measure how campaigns drive in-game engagement and purchases—giving them a clearer view of ROI across digital channels. Why choose Experian Whether you’re trying to build stronger player relationships or turn your audience into a high-performing advertising engine, Experian gives you the data and identity foundation to make it happen. We help you: Organize and clean your player data Resolve identities across digital touchpoints Enrich your data with deep, actionable insights Build and activate target audiences Measure impact across the player journey Let's power up together We’re already supporting leading brands across the gaming ecosystem—from global game publishers and mobile app developers to in-game ad networks and gaming platforms. And we’re ready to help more companies harness the full power of their data. Get in the game with us 🎮 Latest posts
As a programmatic media partner for marketers and agencies, MiQ’s mission is to ensure their clients’ media investments are spent on the right audiences in the right environments. MiQ needed a stronger way to unify audience insights, increase scale, and improve efficiency amidst signal loss. To meet this challenge, MiQ integrated Experian’s Digital Graph into their Identity Spine, creating a more comprehensive view of their clients’ target audiences and ensuring their data-driven solutions remain effective, regardless of the signal source or identifier in use. What is Experian's Digital Graph? Experian’s Digital Graph is like a puzzle, connecting billions of digital identifiers to create a complete view of consumers. As signal loss makes targeting harder, our Digital Graph helps marketers stay connected by linking cookies, mobile ad IDs (MAIDs), hashed emails (HEMs), IP addresses, connected TV (CTV) IDs, and universal IDs, like Unified ID 2.0 (UID2) and ID5. We put the pieces together, matching first-party data to a variety of digital IDs for better targeting, measurement, and cross-device insights—so you don’t have to. Challenge: Strengthen targeting capabilities amidst signal loss MiQ needed to stay agile in its strategy and partnerships to ensure digital connectivity amidst ongoing signal loss. To maintain campaign performance and scale, MiQ sought privacy-first partners they could integrate into their Identity Spine. MiQ’s primary objectives included: Strengthen audience targeting across all digital environments, with or without cookies. Reach target audiences in privacy-compliant ways. Maintain or increase the scale — even as reliance on cookie-based targeting declines. The solution: Integrating Experian's Digital Graph into MiQ's Identity Spine MiQ incorporated Experian’s Digital Graph, licensing HEMs, UID2s, and third-party partner cookies, into their proprietary Identity Spine. MiQ’s Identity Spine seamlessly connects over 60 cookieless data feeds and 25 ID solutions. “Experian’s Graph has bolstered our already comprehensive, multi-ID Identity Spine with incredible data on cross-device ownership and cross-channel behavior.”Georgiana Haig, Strategy and Partnerships Director, MiQ Results: MiQ expanded the reach and scale of their Identity Spine The integration of Experian’s Digital Graph with MIQ’s Identity Spine enabled marketers to find, grow, and measure customers across screens even as signal loss evolves and traditional identifiers fluctuate. The integration allowed MiQ to: Create a unified view: MiQ now has a unified view of its clients’ target audiences, enhancing their audience understanding with the addition of 6.5 devices to each matched IP address, enhancing scale and targeting capabilities. Increase scale: By matching first-party data to multiple universal IDs, MiQ expanded its reach across devices, contributing to a 51% increase in seed audience reach and and a 64% increase in reaching using universal IDs. Improve efficiency: The combination of Experian’s data with MiQ’s Identity Spine improved cross-device ID resolution, leading to more accurate measurement and reporting with a 70% match rate in associating MiQ-provided IP addresses with universal IDs. Stay connected to your audience despite signal loss with Experian MiQ’s Identity Spine stays strong through their partnership with Experian, keeping audience targeting effective even as signal loss changes the landscape. Download the full case study to learn more about how Experian’s Digital Graph enabled MiQ to strengthen audience targeting despite ongoing signal loss. Download the full case study Contact us About MiQ MiQ is a global programmatic media partner for marketers and agencies, with 19 offices across Europe, North America, and the Asia-Pacific region. They specialize in connecting data from multiple sources to solve business problems for their clients. They are award-winning experts in data science, analytics, and programmatic trading, focused on ensuring clients’ media investments are spent on the right audiences in the right environments. To learn more, please visit www.wearemiq.com. Latest posts