Geographic segmentation is the grouping prospective customers by ZIP code, city, country, radius around a certain location, climate or whether they are in an urban or rural location.

Pros

There are plenty of practical reasons why you would segment by geography. This could be legislative where your product/service can only be sold in one area and not another. It could also related to shipping, so as to understand the furthest distance your product could be shipped without incurring additional costs. Climate may demand that you modify your offering, for example air conditioners would be sold in hot countries but could be modified to space heaters for cold ones. Language differences are another obvious reason you would need to change your approach.

Geographic segmentation is relatively easy to obtain and has a lot of practical applications.

Cons

Differences in a geographic location often give rise to different cultures, tastes, and needs but as with demographic data these can be subject to stereotypes and generalisations.

As we have all seen during the pandemic, location is having less and less impact on the way that services need to be delivered and where potential customers are found. Audiences have become accustomed to influences from different cultures, with content delivered in different languages and so geography may not have the impact it once did.

While geographic data has a lot of practical value, it must be combined with other data in order to offer insight and analysts should be careful that they are not coloured by geography in their findings.

STRAT7 Bonamy Finch are the experts on segmentation. With over 1500 successful projects we to combine insight from multiple sources and techniques. Multi-national organisations turn to us for their challenging projects, to find out why you should to: sign up for our next event or get in touch.


View our Case Studies