Types and Best Practices of User Segmentation

When you classify users based on their preferences and behaviors, you can augment your app to resonate with the demographic. User segmentation is a business's primary foundation for developing and driving user engagement. 

A well-planned user segmentation can create the dream user experience and optimize your marketing efforts.

In this blog, we’ll examine the various types of user segmentation and the best practices for implementing them to ensure utmost user satisfaction and growth.

Understanding User Segmentation

User segmentation is the process of classifying your user base into various categories based on their behaviors and preferences.

Instead of building a generic approach for all, you can take your business to the next level by understanding your user motivations. By learning about the different user segments, you can also identify your app’s pain points. 

Additionally, you can design your marketing campaigns and personalize your app experience elements based on each user group.

Types of User Segmentation

Now that you have a clear understanding of user segmentation, let’s look into some commonly used segmentations today:

1. Demographic Segmentation: Grouping by characteristics like age, gender, and location

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Demographic segmentation is based on user traits such as gender, age, income, and geographical location.

Fitness apps like Fitbit outline your workout schedule based on your age group. The app gives younger users intense exercises, while older users receive lower-impact workouts.

Similarly, adopting tools like gamification based on user data can help your healthtech app foster a deeper connection with its user. Moreover, you can also gain insights into the areas where you can allocate resources for maximum returns.

2. Behavioral Segmentation: Categorizing users based on their interactions and behaviors

Behavioral segmentation depends on user interactions. This goes from purchase history and feature usage to session frequency. Using the analyzed behaviors, you can divide your users into groups based on usage. These include power users, occasional users, and at-risk users.

Take the case of Flipkart, which targets users who frequently purchase with exclusive deals based on their preferences. Additionally, they ensure that they adopt re-engagement campaigns to bring back users who haven’t purchased in a while.

By analyzing user behavior, your app can deliver satisfactory experiences that drive engagement and boost retention.

3. Psychographic Segmentation: Segmenting by values, lifestyles, and personality traits

Psychographic segmentation is a type of segmentation that focuses on understanding the user’s psyche, including their values and interests. The focus here is on the “why” behind the user's behavior. 

Fintech apps such as Mint provide push notifications on investment plans based on your lifestyle preferences. Here, user values can range from sustainability to risk tolerance. 

By understanding the user's motivations, you can create experiences that align with your user’s personal goals.

4. Technographic Segmentation: Dividing based on technology usage, such as devices and software

Technographic segmentation looks into the user’s technology adoption and preferences, moving from device to softwares. This can be particularly valuable for platforms such as streaming services, as it provides insights into user preferences and adoption rates. 

For instance, Netflix considers your device preference and offers content designed for that tech choice. A mobile user receives show recommendations with shorter episodes, while a TV user might receive high-definition cinematic content. 

Best Practices for Effective Segmentation

An app’s success lies in its ability to deliver its services efficiently. Here are a few essential practices to segment your users successfully:

1. Use Analytics Tools for Detailed Tracking and Reporting

• Adopt analytic tools such as Google Analytics or Amplitude to ensure effective user segmentation. 
• These tools help you evaluate your user behaviors and demographics. 
• They also provide you with the opportunity to design accurate strategies and segmentation. 

2. Continuously Test and Iterate Segmentation Strategies

• It is important to constantly update yourself with your app’s user preferences, as it can shift occasionally. Ensure regular tests to adjust your segmentation strategies.
• A/B testing is one of the best ways to understand your user segments  and curate experiences to suit their preferences
• Analyzing user feedback can help refine your strategies and segments, making them relevant and effective.

3. Align Segmentation Efforts with Overall Business and App Goals

• Make sure to keep your segmentation in line with your business goals.
• If your app requires increasing user retention or boosting sales, you must segment your users to meet these objectives. 
• However, keep in touch with your long-term goals while focusing on the short-term and maximizing the return on your investment.

4. Foster Cross-Department Collaboration to Utilize Segmentation Insights

• While user segmentation can be an important tool for marketing teams, you must expand its adoption beyond that department.
• By incorporating effective segmentation into app development, sales, and customer support teams, you can plan your app's growth in one direction. 
• The app development team can adopt segmentation data to prioritize updating key features. Meanwhile, your customer support team can use the data to find your app’s pain points using the data. 
• Assuring constant collaboration can take your app experience to what will be relevant to your user.

Closing Out

User segmentation is an essential tool for any business strategy. It provides a roadmap to drive engagement and boost retention. It is crucial to learn your various customer needs and address them immediately across segments to refine your app experience.

Moreover, you have to ensure that your app’s user segmentation is under continuous refining, as this can lead to more meaningful interactions.  

With our A/B testing, Plotline ensures that your app is designed to fulfill the needs of each user segment. Our personalized in-app elements, such as nudges, widgets, and gamification, enable your user segment to engage seamlessly within your app. 

Book a demo with us to see how we can help you elevate your app’s user experience.