Back to blog

What is App User Segmentation?

Introduction

As APP users, we receive thousands of notifications, emails, phone calls and messages regarding product promotion. Out of those, only a handful of information seems valid to us. Most of them are either completely irrelevant or partially relevant at the moment. This is one of the crucial reasons why users uninstall applications on their phones. As a product marketer, how do you correct this issue? App Users Segmentation is the solution. To understand App Users Segmentation, we first need to understand Segmentation, a marketing term.

Segmentation is a process of dividing the audience into different user groups based on similar characteristic traits. For example, dividing the users based on age, location and interests. By dividing the audience into groups, we will target these groups with promotions based on their shared characteristic traits. This becomes one of the important marketing strategies that all successful companies imbibe to retain and grow their audience.

One of the challenges with segmentation is figuring out the useful traits among millions of factors. This article is going to answer that question and will only focus on App Users Segmentation.


Why do We Need App Users Segmentation?

Every user is unique and has different requirements. These requirements also change from time to time and place to place. When user flow is low, personalized suggestions, notifications and recommendations are possible but when you upscale your app it becomes practically impossible. Consider you having a sports streaming service app. One user might like football and another user may like baseball. If you recommend a live football match to a baseball fan, it is not going to be useful. As an application developer, you will be collecting the information that this particular user has watched many baseball matches between Bulls vs other teams. With User Segmentation we can correctly use this information to target a notification from your streaming app posting that there is a match between Bulls and Hawks, we thought you might be interested.

Here is another example. Consider you having a food delivery service app. The user typically orders food around 2 pm. We can use this information to target a notification asking him if he is hungry and would like to order something. Additionally, you can mention any food that is on discount now to intrigue the user into buying. This is only possible through App Users Segmentation.


Working of App Users Segmentation

The first stage of App Users Segmentation is collecting data. Without having proper data, it is impossible to segment your audience. Apart from collecting them, it is also important to note that useful information needs to be gathered based on your application’s requirements. 

Base on the data collected there to perform cohort analysis. App Cohort Analysis is a type of behavioral analytics of what individual users perform in your app over time. There are many applications in the market that perform this analysis. One such application is Appflow.ai, which is specially designed for both Android and iOS applications. Once the segmentation is done, the marketers can design their campaign with the knowledge they derived from the analysis. 

cohort-analysis-segmentation-screenshot-by-appflowFor example, if you have a fitness app you can target personalized notifications each timezone at 6 am for the user to try out exercising. Generally, this will not be accurate as it sounds initially but with multiple A/B trials and errors, you can easily optimize these recommendations. So it is really important to use the right cohort analysis tools.


Types of App Users Segmentation

There are thousands of ways to segment users but we will see some important and the most common ones in this session.

  • Demographic Segmentation

Demographics separates the users based on age, sex, marital status, income, occupation, etc. These are one of the most direct forms of segmentation that is useful for marketing. One of the issues with this is that the categories are very vague and not precise.

  • Geographic Segmentation

Geographic separates the user based on location like state, country, district, city, etc. Geographics are useful to provide localized information and target ads to that public. It is also useful in setting up the local language for the customers.

  • Psychographic Segmentation

If you know the basic personal bio of a user, it doesn't necessarily mean that you completely understand the user. You need to understand the likes and dislikes, the user's values, interests and personality traits. This becomes really helpful to have a deep insight into the audience.

  • Behavioral Segmentation

Behavioral segmentation is a step closer to the user than psychographics. You get to analyze the user habits, spending, search history, etc. This segmentation is also called user status segmentation. This information is collected as the user keeps on using the application. These details are really valuable to segregate the user into long-term user, new arrival, premium user, engaged user, active user, etc.


Advantages of App Users Segmentation

  • User Segmentation helps you to understand your audience better. Understanding the audience helps you improve the customer-audience relationship in many ways.
  • User Segmentation helps you target advertisements better. Delivering the right product to the right customer at the right moment becomes extremely easy.
  • There have been drastic improvements in terms of purchase rates of the applications. When customers are really satisfied with the application they tend to use the application more and tend to purchase more. 
  • User Segmentation also helps you improve your product, learn from mistakes and make the product better and better.
  • Research shows that the retention rate of the audience has increased when user segmentation is done and notifications and product suggestions are done well by the application.
  • At last the most important advantage, there is a huge increase in revenue when user segmentation is used properly. If customers find the product useful but your irrelevant notifications keep disturbing them, they will definitely uninstall it. But even if the product is not that helpful but the user segmentation tools are able to correctly guess the user requirement they tend to buy more from the application.

user-segmentation-generate-revenue-screenshot-by-appflowStart App User Segmentation with Cohort Analysis

App Users Segmentation is a powerful way to help you build a better customer-product relationship. App Users Segmentation helps you improve your revenue, target advertisements better and many more. If you want to help your audience and target your product better, App Users Segmentation is the way forward.

AppFlow.ai offers App Cohort analysis, which shows you what certain users are doing on your app over time and helps you understand your potential target demographics. Cohorts available on appflow.ai include countries, installs, subscriptions, acquisition channels, devices…etc. When you have a subscription-based model for your apps, it is important to spend the right amount of money on marketing. AppFlow helps decide the budget you need to spend on marketing for each segmentation group. User Segmentation alone is not enough to make your app marketing better. We need A/B Testing tools and techniques to optimize your segmentation and learn from its errors. AppFlow.ai has the A/B Testing capabilities which help to optimize your recommendation over time. If you want your application to both target your audience better, and learn from the errors it makes, you can try appflow.ai by clicking the link here.


                                                                  Sign Up For Free Analytics      Check The Demo

Back to blog