Glossary

AdTech industry is vast and ever-changing. It might be hard to keep up with all the new slang, but worry not - our glossary will keep you properly updated!

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User Segmentation

What is User Segmentation ?

A process of dividing the users of an app into groups based on their demographics and behaviors (age, gender, country, etc.). Segmentation of users helps enterprises to understand their base of users. Although not two users can be alike, cohorting groupings of comparable users can disclose the common features of their most successful clients. For instance, the go-to-market team would discover how each segment utilizes the product differently and then determine which marketing channels are more likely to attract converted-to-paid card users if one was to develop user segmentation for test users who are converting against those who churn.

Segmenting can also allow product teams to establish diverse user experiences to enhance involvement, satisfaction, renewal, and expansion. User segmentation enables better targeting due to these features, which are a more customer-centered approach. This technique also allows companies to determine what makes consumers return and how to appeal to additional customers like for a fitness app, for example demographic segmentation: Male, aged 20-40. Psychographics: Loves bike riding, Behavioural segmentation: Uses app eight times per week.

There are various types of user segmentation; however, the most common are: Demographics, firmographic, technographic, customer data, behavioral, and psychographic. Demographic is user information, including age, place, language preferences, title, or role. The Firmographic is user organization information, such as industry, revenues, counts of employees, and business models. Technological information refers to various user-based technologies such as the CRM provider, marketing tools, back-office systems, or databases used in an organization. Customer data means client relationship data in a CRM such as plan types, customer travel stages, annual revenue, and owner of an account or renewal date. Behavioral is information on the user's interactions with the product, including several logins, pages seen, features clicked, created help tickets, and time on site.

Psychographic information is information about likes and dislikes, including the sense of a product. This can be collected through customer satisfaction (CSAT) or Net Promoter Scores (NPS) measurements. User segmentation can be implemented in various ways, like tracking individual behavior and sentiment, defining user groups, comparing activity between segments, and experiments to measure impact on parts.

To sum up, User segmentation consists of splitting users into separate groups or segments based on shared features. A corporation could separate users depending on preferences of languages, product version, geographical area, or user individual. Product teams can examine how user behaviors vary between segments, designing unique experiences for each category using careful user segmentation.

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