Before we start discussing app user segmentation, let’s recall one of our daily situations: 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.
So as an app 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. User 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 from 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.
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
1. 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.
2. 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 the public. It is also useful in setting up the local language for the customers.
3. 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.
4. 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. Demographic Segmentation.
Related reading: 4 Models for Mobile App User Segmentation
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 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.
Working on 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.
The process of user segmentation involves identifying users with similar characteristics from the data collected and grouping them together. This task can involve tons of work here.
Fortunately, there are tools available to automate the time-consuming task of segmenting users, especially when dealing with a large user base. Appflow.ai is an example of such a tool that can help. Its CRM tool can segment users based on the user attributions selected by you.
Here is how Appflow.ai’s user segmentation feature works:
Appflow.ai's CRM put all your app users in a single dashboard, making it easier to manage them all at once. From there, you can navigate to the user segmentation dashboard and create user segments based on specific user attributes such as country, timezone, language, OS, device, acquisition channel, current status, and more.
You have the option of selecting multiple user attributes, and users that meet the specified conditions will be automatically included in the designated user segment.
User segmentation becomes a breeze with Appflow.ai. The CRM feature is available in the Free plan, create a free account (with no credit required) and start app user segmentation today.
Utilize User Segmentation to Increase Monetization
Making use of app user segmentation can lead to a better understanding of users and more effective marketing campaigns. By targeting specific user segments with personalized messages, engagement and monetization can be increased. There are two ways to effectively utilize app user segmentation:
Understand app users more deeply with cohort analysis
AppFlow.ai offers App Cohort analysis, which shows you what certain users are doing on your subscription app over time and helps you understand your potential target demographics. Cohorts available on appflow.ai include countries, installs, subscriptions, acquisition channels, devices, segments…etc.
Learn more about cohort analysis here.
Send targeted push notifications to the right segment of users
With Appflow.ai's no-code push notification feature, you can send targeted marketing messages to a specific segment of users. You can easily create push notification messages in the push notification console and set the notification trigger, user segments, and campaign schedule.
Once you publish the campaign, the notifications will be remotely sent to your app users without app release. This helps you empower your marketing strategies and helps you to target the right audience.
For example, if you have a fitness app you can target personalized notifications each timezone at 6 am for the user to try out exercising.
Related reading: Push Notification Strategy for Mobile Apps
App User Segmentation is a powerful way to help you build a better customer-product relationship. App User 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 User Segmentation is the way forward.
What is App User Segmentation？