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Geographic Segmentation: The Benefits of Dividing Your Market By Location

Geographic Segmentation cover image with a globe

Geographic segmentation in email marketing is a strategy that divides your email list based on subscribers’ location, such as country, state, or city.

A one-size-fits-all approach won’t be effective in a world of increasingly diverse consumers. To truly connect with them and drive results, you must understand the nuances of different geographic behaviors.

Knowing people’s preferences in different regions will allow you to tailor the email content and create a profitable marketing strategy.

Let’s examine how customers’ locations can be a secret weapon to increasing your email marketing revenue.



Understanding Geographic Segmentation Marketing

Geographic email segmentation refers to dividing your email list into smaller, more focused audience groups based on their location. Customers are usually grouped based on where they live, work, or shop.

You can gain valuable insights into distinct characteristics such as climate, culture, population density, and economic conditions. Understanding these core attributes can help you adjust the product pricing, promotions, and distribution channels to match the specific needs of each customer in a location.

For example, consumers might prefer more warm clothes in cold climate regions, while people in hotter zones will likely prefer wearing loose-fitting and light clothing.

Geographic segmentation deep dives into those trends, guiding your marketing strategies in the right direction.


Advantages of Geographic Segmentation in Email Marketing

Promoting the right products to the wrong audience segments could cost you millions of marketing dollars and tarnish your brand reputation as well.

However, when you customize each offer, you can connect with every subscriber on a personal level. This is where geographic segmentation can direct your resources on the right path.

Geographic segmentation in email marketing offers many benefits, such as:

  • Increased relevance: By tailoring email content to specific locations, you can create messages that directly relate to subscribers’ needs, preferences, and local events.
  • Improved targeting: Focusing on specific geographic areas can allow for precise targeting and maximize impact on the overall marketing budget and results.
  • Enhanced customer experience: Sending personalized product recommendations or email content fosters long-term trust and strengthens customer connections.
  • Higher conversion rates: Relevant emails increase the likelihood of higher open rates, click-through rates, and email marketing conversions.
  • Better understanding of local markets: Analyzing performance by location provides valuable insights into user behavior, preferences, and trends.
  • Competitive advantage: Geographic segmentation gives you a competitive advantage by addressing consumers’ unique demands through localized products and services.

Once you target people with the right content and offers, they are more likely to keep buying from you and recommend your business to similar consumers.

Geographic segmentation allows you to narrow your email marketing subscribers based on different criteria and variables.

Let’s discuss the common ones below.


The Different Levels of Geographic Segmentation

The level of detailing in your geographic segmentation depends on your business size, target audience, and marketing goals.

The table below breaks down the common geographic segmentation variables.

Segmentation CategoryCriteriaHow it’s Done
Broad levelsCountryTargeting the entire nation, useful for companies like MNCs
RegionFocuses on specific regions within a country
State/provinceTargeting specific states or provinces
Narrower levelsCityTargeting specific urban areas based on certain factors
NeighborhoodFocusing on specific parts of a city, allowing for narrower targeting
Other conditionsClimateTargeting regions with similar climates for products like apparel or sports gears
Population densityDifferentiating between urban, rural, and suburban for precise tailoring of messages
Urban/ruralTargeting specific urban or rural populations based on their unique requirements
Geographic Segmentation Variables

Let’s review the main aspects of the table above in detail.

1. Location

Location is a main factor that often influences people’s lifestyles and shopping habits. For example, the menu of fast-food chains like McDonald’s can vary by nation. People in the U.S. could prefer McChicken, McRib, etc, while the menu in India could serve McAloo Tikki, McSpicy Paneer, etc.

These regional and urban differences can impact the overall outcome of your geographic segmentation. It’s best to differentiate between them to address the unique preferences of people.

2. Climate

Temperature ranges, including hot, cold, and humid, can affect how people perceive a product. For instance, users in hot climates will most likely never purchase a sweater material or prefer warm beverages such as hot cocoa.

Additionally, your product offers will vary in areas prone to specific weather changes, such as increased rainfall or frequent snow. Refining this variable in the geographic segmentation will help you send different types of emails respecting consumer preferences.

3. Population-density

High-density areas often contain diverse audiences with varied likes and preferences. Consider how these might affect your email marketing strategies. For example, people living in low-density areas might not have access to many retail or coffee shops, which could alter their brand loyalty and buying habits.

Likewise, mountainous areas can demand unique products like mountain gear, and people living on coastlines might want to buy fishing nets and water sports equipment.

Note how people behave in regions with different population levels, affecting psychographic capabilities. Ethnicity and language can also influence people’s purchase behaviors.

4. Technological Factors

Digital literacy and access to the Internet can vary across regions. Rural areas might not have the same level of digital access as metro cities.

Technological connections control how people react to products and services, and it’s important to modify your strategies to suit users’ lifestyles. Consumers in the city might need updated products, while those in the countryside seek basic items to fulfill their daily activities.

You can gain a deeper understanding by using geotagging — a process of adding geographical metadata to customers’ photos and videos for easier identification. Customers likely have enabled geotagging on their social media, which you can use to consolidate products and services according to their region.

However, be mindful of privacy concerns and data security by ensuring users agree and acknowledge the usage of geotagging their media.

Understanding these key differences will help you target the right people with the right messages and elevate your email marketing ROI.

Attracting every subscriber in the globe can sound intimidating. But with the right geographic segmentation models, you can differentiate customers on a micro-level and target them with highly relevant offers.

To be ultra-clear in your email approaches, you could combine demographic segmentation (a broader strategy to divide audiences) with geographic segmentation methods.

During the segmentation process, it’s easy to confuse both of these methods since they involve location-based customer characteristics. However, geographic and demographic segmentation is completely different and caters to the sender’s varied needs.

In the next section, we’ll gain a deeper understanding of these terms and their differences.


Demographic Segmentation vs. Geographic Segmentation

Both demographic and geographic segmentation are valuable tools for grouping audiences based on shared characteristics. Demographic segmentation measures characteristics such as age, gender, income, and family size.

The table below summarizes the key differences between demographic and geographic segmentation.

AspectDemographic SegmentationGeographic Segmentation
DefinitionIt divides the market based on population characteristicsIt divides the market based on location
Common variablesAge, gender, income, occupation, family size, etcLocation (country, region, city), climate, population density, time zone
PurposeTo understand target customers based on who they areTo read customers based on where they live
Impact on product marketingProducts might be customized based on income levels, family preferences, and educational backgroundProducts and offers are often customized based on location, time zone, and climate changes
Marketing channelsIt often includes targeted advertising on social media, email, and traditional media based on demographic dataIt includes location-based marketing strategies, localized advertising, and regional promotions
ChallengesIt requires accurate demographic information of usersIt requires an understanding of local market conditions and regional differences
Demographic Segmentation vs. Geographic Segmentation

These two methods are often combined to create highly specific email marketing campaigns. For example, a clothing brand might target young professionals living in coastal belts with swimwear and beachwear.

However, if you use geographic segmentation alone, consider factors such as a place’s culture and economic conditions when evaluating an audience group.


Factors Influencing Geographic Segmentation

As you divide audiences by location, you might encounter scenarios that require an extra layer of analysis. For example, you can sort audiences based on their regions, but the cultural differences in that region could impact their habits, tastes, and buying preferences.

The table outlines other factors that can influence your geographic segmentation.

FactorDescriptionImpact on Geographical Segmentation
LocationIt refers to the physical place where customers live, such as the city, region, or stateDifferent locations have unique cultural values, affecting consumers’ behavior
ClimateIt involves the weather patterns and seasonal changes in a geographic locationProducts and marketing strategies are customized to suit seasonal changes
Population densityIt refers to the number of people living in a particular areaAffects the types of products offered. For example, compact living solutions in urban areas and fewer digital ads in developing areas
LanguageThe primary language or dialect spoken in a locationMarketing messages, product packaging, and customer service must be adapted to the specific region
Economic conditionsIt relates to the overall economic environment of a region, including income levels and employment ratesRegions with higher income levels can be targeted with premium products and vice versa
Cultural factorsIt includes the traditions and social norms prevalent in a specific geographic locationIt influences product preferences and advertising in different regions
Political and legal factorsThe regulations and laws in a region affect product preferencesCompliance with local laws necessary, such as product labeling and advertising restrictions
Factors that Influence Geographic Segmentation

Review every aspect of geographic segmentation to understand how they dictate the overall behavior of customers in different regions.

Focus more on these factors if your email campaigns involve offers and promotions that might affect the cultural connotation of a specific location.

In the next step, we’ll learn how to use geographic segmentation in email marketing effectively.


How to Implement Geographic Segmentation in Email Marketing?

Tailoring your email campaigns to suit the behavior and preferences of people based in different locations helps you maximize email marketing personalization.

However, avoid packing emails with too much content and irrelevant information, which could overwhelm the readers.

Here’s a step-by-step guide to implementing geographic segmentation in email marketing.

1. Collect and Analyze Geographic Data

Your sign-up forms are valuable resources to help you find out customers’ locations. Include a simple location field to capture users’ state, region, or Zipcode.

You can also use the following methods to collect location information:

  • Track the IP address: You can use IP address tracking to automatically know where a customer lives when they sign up or interact with your emails. Geotagging is another option to analyze a person’s location.
  • Analyze purchase history: Examine past purchases to divide customers based on their geographic locations.
  • Integrate with a CRM: Integrate your email marketing platform with a CRM to access users’ location information.

2. Create Geographic Segments

Based on your analysis, create geographic segments from your email list. This could be as broad as a country or specific as a particular region.

Sometimes, a customer can fit into multiple segments, such as regional area with cold climates. Consider handling the overlap with effective strategies.

You could also divide your email list based on customers’:

  • Country or region,
  • City or ZIP code,
  • Climate or season,
  • Time zone.

Time zone is a crucial factor when determining the best time to send emails. Not all subscribers will open your emails at the same time. Consider implementing a standard time zone or automating emails according to different time zones.

3. Tailor Content and Offers

Localized content accurately reflects a region’s specific interests, increasing the likelihood of email responses. You can implement holiday email marketing strategies or send local event invitations to capture the audience’s attention.

In addition, send exclusive email coupons, discounts, and offers relevant to each location.

4. Personalize Subject Lines

The email subject line is the gateway to creating the first impression with your subscribers.

Remember the following tips when crafting subject lines:

  1. Use location-specific lines: Include words relevant to a specific location to increase email open rates and engagement.
  2. Mention local events: Highlight local events in the subject lines to increase relevance and curiosity.
  3. Experiment with different subject lines: A/B test different subject lines to understand what works best for your audiences.

Regularly monitor and analyze the market to adapt your email marketing strategies to the latest email marketing trends. For example, using artificial intelligence to create intriguing subject lines or implementing interactive elements in emails can foster brand loyalty.

Let’s observe how other brands have successfully used geographic segmentation in their email marketing.


Real-world Examples of Geographic Segmentation

Here are examples of famous brands and their geographic segmentation methods.

1. Starbucks

Starbucks is a multinational coffee brand with stores all over the globe.

Starbucks geographic segmentation example
Starbucks Geographic Segmentation Example. Full version at the source.

The brand uses geographic location in the following ways:

  • Location-based promotions: Starbucks often sends out emails that cater to people in specific locations. For example, the brand might promote a local bakery partnership or a limited-time drink available only in certain areas.
  • Weather-related promotions: In colder regions, Starbucks usually highlights its hot beverages and emphasizes iced drinks or cold brews in hotter climates.

2. REI

REI is a sports and camping brand supporting people’s love for outdoor adventures.

REI geographic segmentation example
REI Geographic Segmentation Example. Full version at the source.

The business uses the power of local events and scenarios to tap into consumers’ emotions, like:

  • Regional outdoor activities: REI often sends emails featuring outdoor gear popular in specific regions. For example, the brand promotes camping gear for customers in mountainous areas or kayaking equipment for people in coastal regions.
  • Store-specific events: REI could use geographic segmentation to promote exclusive local store events, workshops, or gear demonstrations at specific locations.

3. Dunkin Donuts

Dunkin Donuts is a global brand selling coffee and coffee across 12,000+ locations. The brand focuses on teenagers to retirees, both men and women.

Dunkin Donut geographic segmentation example
Dunkin Donuts Geographic Segmentation Example. Full version at the source.

The brand could use the following geographic segmentation strategies:

  1. Local flavor preferences: Dunkin Donuts adapts its email campaigns to cater to regional peoples’ preferences. For instance, it could promote Boston Cream donuts in the North and beignets in the South.
  2. Weather-based promotions: Similar to Starbucks, Dunkin Donuts can promote warm beverages in colder locations and vice versa.

4. Retailers (Macy’s, Nordstrom)

Retailers like Macy’s and Nordstrom segment subscribers by their region and clothing preferences.

Nordstrom geographic segmentation example
Nordstrom Geographic Segmentation Example – Source

They may use the following aspects to define their audiences:

  • Regional fashion trends: These retailers use regional data to customize fashion trends and styles.
  • Local store events: By understanding customers’ proximity to the store, these retailers can promote in-store sales, events, and exclusive product launches.

These brands prove that businesses can use geographic segmentation to increase customer satisfaction and sales.

Using email security best practices and proper segmentation models can help you achieve optimum results. However, to get there sooner, the best method is to use a reliable email services platform.

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