Marketing segmentation is the process of separating prospective clients into groups organized by consumer needs and particular responses to marketing strategies.

Marketing automation software is now creating new opportunities for users to leverage the power of segmentation. A well designed platform can be used to segment relevant data into different buckets, and then various actions (such as follow-up emails or webinars) can be automated to effectively meet the parameters of a given segment.

The three common factors prospect groups are segmented by are:

  • Homogeneity (leads who've got the same or similar needs)

  • Difference (what distinguishes this group from others)

  • Reaction (characterized by similar responses to market actions)

Market segmentation strategies are most often based off of the following data sets: behavioral; demographic, psychographic; and geographical differences. The main factors affecting the success of segmentation include: recognizable identification for the segment; ability to measure its effective size; promotional reach; and whether or not it can match a company's resources

By inputting segment information (such as geo-location) into an automation platform, marketers can simultaneously reach multiple groups with unprecedented efficiency and precision.

Furthermore, users can create rules in the program to make messaging within segments even more targeted.

The bottom line is that marketing automation has completely opened up the potential of segmentation. It will be interesting to see how marketers utilize this powerful technology in 2017.