Geographic Segmentation: Why You Should Segment Your Audience by Location

As marketers who got into personalization to better connect with customers, we were curious about how people use our platform to connect with theirs.

To help other marketers better segment their audiences, we dove into data on thousands of Ninetailed experiences.

This allowed us to uncover how Ninetailed power users segment their audiences.

This article is a quick snapshot of our recent Segmentation Report, presenting our findings around geographic segmentation. Here’s what we found.

The Top 5 Segmentation Variables in 2024

In the past couple of years, there’s been a drastic shift in marketing spend from paid ads to organic content. Consumers are seeking more personalized experiences from new and familiar companies alike. This demand puts more pressure on marketers across industries to tailor content to their customers’ needs. Before we reveal how each industry segments, here are the general top segmentation variables:

1. 22.6% of all companies in our data set segment by location

2. 18.2% of all companies in our data set segment by behavior

3. 18.0% of all companies in our data set segment by page visit

4. 14.3% of all companies in our data set segment by paid traffic

5. 5.5% of all companies in our data set segment by shopping data

Our Take:

These segmentation variables dominate website content personalization due to their direct impact on user experience, relevance, and higher ROI.

Location-based segmentation, the most prevalent at 22.6%, allows companies to deliver region-specific content, catering to local preferences, languages, and cultural nuances.

This has been shown to significantly enhance user engagement.

Geographic Segmentation Examples Among B2B SaaS Companies

Between the rapid development of AI, access to affordable development resources, and demand for software solutions, the number of B2B SaaS companies has skyrocketed. In fact, according to Statista, 30,000 new SaaS companies entered the market in 2023, growing to over 70,000 in 2024.

As the market becomes more competitive, companies need to be smart about how they’re targeting each of their customer segments. Many B2B SaaS products serve many industries and use cases, making it essential that they tailor their approach to each segment. To stand out in 2024, here are the top five ways B2B SaaS companies are segmenting their audiences on Ninetailed:

1. Behavior — 22.7%

2. Firmographic — 21.1%

3. Page Visit — 16.5%

4. Location — 10.3%

5. Technographic — 6.7%

Location-based segmentation speaks for itself.

It allows companies to personalize their content based on geographical location. It can be influenced by customer preferences, pain points, and behavior, along with larger factors like market competition and local regulations.

Our Take:

Segmentation based on location could mean a lot of things.

We’ve seen B2B SaaS companies use it to tailor messaging to local markets, determine their product offering and pricing, and grow market share in a specific region.

Location-Based Segmentation Among E-commerce Companies

The e-commerce market has exploded over the past few years, with global sales growing from $4.9 trillion to $6.3 trillion between 2021 and 2024.

Between the crowded market, stricter data privacy regulations, and decline in paid ad performance, e-commerce companies are rethinking their marketing strategies. For most, this has led to a greater focus on personalization.

Here’s how they’re breaking up their audiences:

1. Location — 27%

2. Page Visit — 18.6%

3. Paid Traffic — 16.9%

4. Behavior — 16.9%

5. Shopping Data — 7.1%

Consumer preferences can vary depending on location. Because of this, many e-commerce companies segment their audience by variables like physical location (country, state, etc.), timezone, language, and population density.

Our Take:

Given the amount of ads and information that e-commerce customers face every day, general messaging is no longer adequate.

By segmenting audiences by location, e-commerce companies can craft messaging and content that is culturally and geographically relevant to their audience. This can help them improve brand perception and potential for conversion.