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What is Dynamic Audience Segmentation?

Written by Diane Keng | Oct 20, 2021 7:00:00 PM

As a marketer, your job is to connect your brand to your audience in meaningful and relevant ways, build relationships, and get the right message across at exactly the right time. While those efforts may have started as a “one-to-many” approach to messaging, today’s marketers need to adopt a one-to-one approach to create deeper relationships with consumers. This method can be costly and time consuming for marketers – but it doesn’t have to be.

As consumers become more complex and their habits change more rapidly, the key to effective marketing is by personalizing the digital consumer experience, reaching consumers with relevant messaging, content, and product recommendations. 

One way to do that is by enabling dynamic audience segmentation, but what exactly does that mean?

Understanding Dynamic Audience Segmentation

Most marketers are well-versed in segmentation. Generally, that includes creating different segments based on demographics, psychographics, and location. Usually with segmentation the number of audience segments is fairly limited – marketers have a finite number of segments that they can tailor messaging and experiences for, and that number isn’t very high. For example, it’s tough for marketers and agencies to successfully target more than 10-15 segments for direct marketing channels without AI-powered solutions working behind the scenes to create truly relevant experiences for segments at scale.

Today, consumers are more complex than ever. Their preferences change in minutes, not months – that means the consumer experience needs to change just as quickly. This is where the “dynamic” piece comes into play. 

What if you were able to use your data to segment consumers based on more complex criteria, and have these segments adapt to changing consumer preferences in real-time?

Essentially, dynamic audience segmentation is like a filter that updates automatically based on consumer behaviors. Instead of parsing your audience into a few different segments based on things like demographic data or location, dynamic audience segmentation allows you to continually segment your audience, assigning consumers to the most relevant segments given their current activity, context, and historical data.

Why Do Marketers Need Dynamic Audience Segmentation?

When it comes to personalizing the consumer experience, knowing exactly what your consumers are looking for at any given moment is crucial. Historical data can paint part of the picture, but understanding the context of a consumer is essential for creating a truly relevant digital consumer experience. Here’s why you need dynamic audience segmentation:

  • Create and manage more specific audience segments at scale.

Audience segmentation is nothing new, but it’s hard to do effectively and at scale. AI solutions are helpful here. . Marketers are able to manually tailor messaging and consumer experiences to a few segments, but that’s not a scalable practice – and it’s impossible to do in real-time. With AI-powered dynamic audience segmentation, the heavy lifting doesn’t require much involvement from marketers. 

  • Optimize the consumer experience in real-time.

Consumer preferences change faster than ever. Anything from the weather to a coupon for 10% off can change their minds about making a purchase, but if you’re not able to tailor your messaging to each consumer’s individual needs, they’re less likely to stick around. For example, an alcohol retailer might want to recommend products for hot weather. However, what is considered hot weather in Toronto, is different from what is considered hot weather in San Francisco. Traditional segments would be based on temperature, like “individuals who are in places above 75°F”, but wouldn’t factor how people feel in different cities as the weather changes. Dynamic segments would allow you to provide recommendations based on more complex criteria like “individuals who are in places that are 10% hotter than average temperatures”, which increases the likelihood of your consumers finding exactly what they want at the right time. 

  • Improve your marketing ROI.

Your bottom line matters. There’s no sense in looking for tech solutions that don’t solve your problems or take months, sometimes years to show results. While you’re already segmenting your audiences, taking the extra step to enable dynamic audience segmentation can help you make sure your messaging is relevant to every consumer, boosting engagement, sales, and consumer loyalty. 

While basic audience segmentation tactics might work for the time being, consumers are looking for brands that really understand their preferences and can serve them relevant digital experiences at a moment’s notice. 

At the end of the day, it all comes back to the consumer experience. Implementing dynamic audience segmentation capabilities can lighten the load on marketers while creating more relevant, personalized digital consumer experiences – meaning consumers are more likely to stick around to see what your brand has to offer.

To learn more about dynamic audience segmentation and how Breinify can help your brand enable this, reach out to us today!