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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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In a perfect world, we’d all have a single, go-to grocery store that carried everything on our shopping list – fresh produce, gourmet coffee beans, rare spices, and maybe even that special-grade olive oil, right alongside our wholesale bulk purchases at unbeatable prices. It would be convenient and efficient, and it’d save a lot of driving around town. The changing data marketplace: From one-stop shop to specialized selection For a long time, data buyers enjoyed something similar in their world: a small set of large-scale data marketplaces that offered a wide array of audiences, making it easy to load up on whatever you needed in one place. Not only are there fewer places to pick everything up, but new factors like privacy and signal deprecation are placing a spotlight on quality and addressability. Just as our dinner plans are growing more ambitious insofar as we want health, flavor, value, and convenience all in one place – so are our data strategies. Instead of a single steak-and-potatoes meal, today’s data marketplace operators might be cooking up a complex menu of campaigns. As a result, data buyers are beginning to shop around. Some still rely on large-scale marketplaces for familiar staples, but now they have reasons to explore other options. Some are turning to providers known for offering top-tier, transparently sourced segments. Others are focusing on specialty providers that excel in one area. A more selective approach to data buying In this environment, choosing where to “shop” for data is becoming more deliberate and selective. Data buyers aren’t just thinking about broad scale; they’re looking to prioritize quality, durability, data privacy, and differentiation. They need to place higher value on data marketplaces that can maintain audience addressability over time, despite signal loss. Sometimes, that means accepting a smaller assortment in exchange for tighter vetting and more reliable targeting. Other times it means mixing and matching – stopping by one marketplace for premium segments and another for cost-friendly, wide-reaching data sets. Either way, they can benefit from having more choices. Experian’s marketplace: A trusted source for high-quality data Experian’s vetted and curated blend of data partners and vertically-aligned audiences offers a trusted specialty store for data buyers. Experian’s marketplace, powered by identity graphs that include 126 million households, 250 million individuals, and 4 billion active digital IDs, enables partner audiences to be easily activated and maintain high addressability across display, mobile, and connected TV (CTV) channels. In particular, Experian’s marketplace provides: Enhanced addressability and match rates All audiences delivered from the marketplace benefit from our best-in-class offline and digital identity graphs, which ensure addressability across all channels like display, mobile, and CTV. Unlike other data marketplaces, Experian ensures all identifiers associated with an audience have been active and are targetable, improving the accuracy of audience planning. Audience diversity and scale Access a broad range of audiences across top verticals from our partner audiences, which can be combined with one another and with 2,400+ Experian Audiences. The ability to join audiences across data providers ensures that buyers can build the perfect audience for the campaign. Trusted compliance and oversight With decades of experience, Experian is a trusted expert in data compliance. Our rigorous data partner review ensures available audiences comply with all federal, state, and local consumer privacy regulations. The future of data marketplaces: Precision and flexibility matter The evolution of data marketplaces reflects the industry's shifting priorities. Data buyers seek specificity, reliability, and adaptability to align with their diverse campaign needs. 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If you're interested in learning more about Experian's marketplace or becoming an active buyer or seller in our marketplace, please contact us. Contact us Latest posts
Conventional TV advertising campaigns have historically relied on general audience metrics like impressions and ratings to measure outcomes. These metrics can help marketers understand how many people have seen an ad, but they don’t reveal its real-world impact, which leaves a gap between ad exposure and results. Outcome-based TV measurement bridges this gap and helps marketers tie ad spending directly to their business goals. Instead of counting eyeballs alone, TV measurement zeroes in on what viewers do after seeing an ad — whether signing up for a service, visiting your website, or purchasing a product. TV ad measurement helps marketers adjust campaigns based on clear, trackable outcomes rather than guesswork. Let’s talk about how marketers can get started with outcome-based TV measurement and start experiencing tangible results. Why outcome-based TV measurement matters Outcome-based measurement indicates a massive shift in how marketers evaluate TV advertising success. As a principal analyst at Forrester explained, the industry is about to “move into a whole different world" where multiple metrics are tailored to advertisers’ unique goals, such as sales, store traffic, or web engagement. This shift is driven by improved tools for tracking TV outcomes, which help justify spending and clarify ROI. With TV measurement, you can see how your campaigns impact aspects of your marketing like sales and engagement. Aligning TV ad spend with business goals Every business has distinct objectives. Outcome-based measurement ties your marketing efforts to business goals and enables smarter decisions, campaign optimization, and ROI improvements. Whether you're a B2C brand wanting immediate sales or a B2B organization looking to drive website traffic, this method provides the insights needed for strategic decision-making. Marketers can deliver the most value by adjusting TV ad spending to maximize desired results: Sales goals: Identify which ads and platforms directly influence purchases to ensure TV ad spend contributes to revenue growth. Customer engagement: Link actions like website visits or app downloads to TV campaigns and refine messaging to deepen audience connections. Desired outcomes: Align ad spend with goals like consumer awareness or repeat purchases to allocate resources effectively for measurable success. Reducing wasted spend on ineffective channels Outcome-based TV measurement allows you to pinpoint which networks, times, or programs drive the most engagement and conversion. When you know your underperforming channels, you can reallocate budgets to those with a higher ROI and avoid waste. Core metrics in outcome-based TV measurement The effective implementation of outcome-based measurement requires advanced TV advertising analytics and tracking metrics that shed light on TV ad performance. Incremental lift This metric measures the increase in desired actions and business results — like purchases or site visits — that can be attributed directly to a TV campaign. Incremental lift quantifies your campaign’s impact and separates organic activity from the results your ads have driven. Let’s say a meal kit service experiences a 20% lift in subscriptions within a single week of running TV ads compared to a week without ads. They’d want to be able to isolate the impact of their ad from their organic growth so they can determine if the growth is actually a result of the TV ads or another effort. Attribution and conversions Attribution links TV ad exposure to specific customer actions, such as newsletter sign-ups and product purchases. 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How outcome-based TV measurement works Outcome-based measurement is a data-driven process that involves collecting, analyzing, and applying insights to improve TV ad performance. 1. Collect data When someone sees your TV ad, they might take action, like downloading your app or buying something. Outcome-based TV measurement begins by tracking these actions and gathering data from various sources, such as: TV viewership CRM Digital engagement Purchase behavior Cross-platform interactions And more Data integration with digital platforms Combining TV data with insights from platforms like social media or website analytics creates a more unified view of campaign performance. This integration powers easier retargeting and better alignment between digital and TV advertising strategies. Some marketers enhance this integration further using artificial intelligence (AI) to streamline data coordination and ensure campaigns are optimized for effectiveness and ROI. 2. 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Automotive: Automakers use outcome-based TV measurement insights to determine how ads drive dealership visits, test drives, or inquiries. A car manufacturer could analyze whether TV spots featuring a new vehicle increase traffic to its dealership locator or car configuration tool online. Healthcare: Pharmaceutical companies could assess whether TV spots lead to increased prescription fills, or a health provider could test how ads promoting flu shots result in appointment bookings through its website or app. If any messages resonate more with families, the provider can create similar campaigns for the future. How Experian enhances outcome-based TV measurement Experian has recently partnered with EDO, an outcomes-based measurement provider, to offer more granular TV measurement across platforms. Our identity resolution and matching capabilities enhance EDO’s IdentitySpine™ solution with rich consumer data, including age, gender, and household income, all in a privacy-centric way. Integrating these demographic attributes is helping advertisers achieve more precise audience insights and connect their first-party data to actionable outcomes. As a result of this collaboration, brands, agencies, and networks can optimize their TV campaigns by identifying which ads drive the most decisive engagement among specific audience segments. We’re improving accuracy, targeting, and more so advertisers can maximize the performance of their CTV strategies. Get in touch with Experian’s TV experts If you’re ready to take your data-driven TV advertising strategies to the next level, connect with our team. We combine advanced data and identity solutions as well as strong industry collaborations to help brands optimize their TV campaigns. Whether you're navigating traditional or advanced TV formats, our expertise ensures your efforts deliver maximum impact. Connect with us today to drive engagement, connect with audiences, and achieve better ROI. Let’s transform the way you measure success on TV. Reach out to our TV experts Contact us Latest posts
Advertising today is more complex than ever. Consumers demand personalized, relevant experiences from brands, making it increasingly challenging to meet expectations without external support. Businesses must work with publishers, retailers, and platforms to thrive, using these partnerships for data insights that refine their strategies and fuel growth. We spoke with industry leaders from Ampersand, AppsFlyer, Audigent, Comcast Advertising, Fox, ID5, and Snowflake to gather insights on how strategic collaboration can expand audience reach, improve targeting precision, and drive measurable advertising success. 1. Expand your reach with strategic collaborations Gone are the days when brands relied solely on third-party data. By linking their first-party insights with equally valuable data from partners, brands develop a far more comprehensive understanding of their audiences. This collaborative approach creates richer audience profiles, improves targeting, and enhances campaign performance. Partnerships also create opportunities for operational efficiencies. For instance, brands that share data and expertise with collaborators can expand their audience reach without overhauling existing systems. These collaborations allow marketers to work smarter, turning shared knowledge into strategic wins. "Partnerships are everything. We can't fulfill our goals on the sale side, marketers can't fulfill their goals of finding their audience where they need to reach them and with the right level of outcomes without partnering together. Why? Because each of them has their own line of sight to the data that they have access to and the data that they know best."Justin Rosen, Ampersand 2. Identify the right partnership model Choosing the right partnership model is key to achieving your business objectives. For some, pairing first-party data with publishers' insights creates better targeting. For others, aligning with complementary brands allows them to engage shared audiences. For large-scale efforts, agencies can unify collaboration frameworks, making onboarding and activation seamless. Meanwhile, emerging categories like FinTech, hospitality, and commerce media provide brands new avenues for impactful partnerships. Evaluating these options thoroughly will ensure your collaboration aligns with long-term marketing goals. "With first-party data being really the central point of signal today, we see more and more of our advertisers identifying partnerships with maybe potentially historical competitors or partners they would've never considered."Tami Harrigan, AppsFlyer 3. Utilize the power of pooled insights Combining various data sources, like CRM records, browsing behavior, and shopping receipts, creates an in-depth view of your customers. By understanding what motivates consumers at every stage of their journey, brands can better tailor messaging and funnel marketing spend to where it matters most. This approach also enables data-driven agility. Real-time insights help brands make informed adjustments, whether it’s shifting strategies mid-campaign or identifying new growth opportunities. When brands share data responsibly, the results are campaigns that resonate and deliver measurable improvements. "A lot of advertisers have gotten smarter about their data than they were just two, three years ago. They’re now doing that segmentation on their side with their data and bringing that to Fox and saying, ‘Look, match this segment against your entire user base.’ In order to do that, we can work with providers like Experian, or with data clean rooms to really bring that data and do a direct match without going through a third party."Darren Sherriff, Fox 4. 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The way to solve that is with more interoperability and connect the data in very privacy-safe ways, offering more opportunity to reach high fidelity audiences and incorporate better measurement methodologies.”Carmela Fournier, Comcast Advertising The path to growth through partnership Those who prioritize collaboration will outrun the competition and drive sustainable growth through smarter, more connected advertising. By choosing the right models, using powerful technology, and addressing potential obstacles, brands can co-create campaigns that resonate deeply with their audiences. Connect with our experts Latest posts