3 Secrets of Marketing Segmentation Revealed

Marketing Segmentation

On its surface, the principle of marketing segmentation is simple: divide your potential audience into smaller groups so you can deliver a tailored message just to that group. Segmentation opens up a world of benefits for your institution and for your target audience. By delivering relevant messages to consumers, you build trust and garner an improved response — raising the effectiveness of each dollar spent.

The power of marketing segmentation

If it’s so simple, what makes segmentation such a challenge among community financial institutions? Especially in the age of technology, often the simplest things belie the complex infrastructure, analytics, and dependencies required for success.


The 3 Hoops you Must Jump Through


Community financial institutions face three distinct challenges on the road to effective marketing segmentation:


Acquiring the right data

First, you need access to the data, meaning you either need to collect it yourself, purchase access, or work with a partner that has access. Realistically, the latter two options give you the greatest reach but lead to the second issue.


Developing the expertise to optimize your strategy

Not all marketers have the experience and skills necessary to manipulate the data effectively. Building your own segments can be a daunting task. While separating “past account holders” from “current account holders” is a good start, when you begin prospecting for new account holders, things get tricky, fast.


Finding time to implement and maintain the program

Even a marketer who is skilled at utilizing segmentation still needs time to build out relevant campaigns, deploy, manage, and report on performance, as well as any other responsibilities. Many institutions lack the staffing resources to really devote the necessary time to proper segmentation.

Segmentation is a game of scale, and it pays to play with a partner who can leverage resources and technology that are out of reach for most community banks and credit unions.


The 3 ‘ics’ you Should Expect from a Good Marketing Segmentation Model


When evaluating segmentation models, there are 3 key factors to examine:

  1. Geographics — where they live
  2. Demographics — who they are (i.e. gender, income, age, etc.)
  3. Psychographics — what behaviors, attitudes, and social value groups they exhibit and what motivates them to respond

Ideally, you will build on insights you know about the consumer characteristics that are the best fit for your institution’s goals, budget, and brand.

Once you have access to the right data, implementation is your next step. Consider partners who can help you establish a fully cross-channel automated marketing strategy to keep up a conscious conversation with your targeted consumers.


Real World Marketing Segmentation Examples

Community financial institutions bear a heavy operational burden with constrained resources and staff; at Kasasa we’re always looking for ways to lighten your load. In our segmentation model, we’ve analyzed and identified groups of consumers who have a high likelihood of choosing a community financial institution. Each segment or “cohort” is designed to let you quickly choose categories that fit your goals — and select the right mix of marketing channels.

Here are just a handful (there are a dozen total) of the cohorts that Kasasa clients can choose from:

  • Super Suburbans
  • Expanded Accumulating Families
  • Middle America Families
  • Country Comfortable Couples
  • Single Strivers


Get Your Own Market Insights Report

If you'd like to see the 'ics' of your community, then go ahead and request your own Market Insights Report. It's completely free and personalized for your communities.


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Zac Garver

Zac didn’t realize that Copywriter was an actual job when he earned his degree in Creative Writing. He’s been fortunate to make a living as a professional writer since 2010; although people still think he gets paid to put copyright symbols on things (sigh). A devoted family man and Maker, Zac saves money by fixing and building the things he doesn’t want to buy.

3 Questions for Zac:

  1. What was your very first job?

    I worked as a dishwasher in a local pizza shop. It was a wonderful job for a 15-yr old, lots of grease, soap and free pizza.

  2. What's the weirdest food you've ever eaten on purpose?
    I put mint-chocolate-chip ice cream on homemade rhubarb pie and refused to admit how disgusting it was.

  3. What would people be surprised to know is on your iPod?

    An entire album of humpback whale songs.