Geographic segmentation

Geographic segmentation organizes customers based on their geographic location, such as the country, region, city, or neighborhood where they live or work.

Geographic segmentation enables companies to deliver regional content, cater to local languages or dialects, address cultural nuances, and determine which products and marketing strategies work best in different regions.

Geographic segmentation, or location-based segmentation, is the most frequently used customer segmentation type among Contentful power users, with 22.6% of companies using it to enhance their marketing efforts.

Marketers use geographic segmentation to tailor marketing campaigns based on seasons, local holidays, and nearby attractions, creating personalized experiences that resonate with individuals.

Companies also use geographic segmentation to enter new markets and grow market share in specific regions.

Geographic segmentation divides customers based on their geographic location and other geographical parameters, such as climate, time zone, population density, and language.

Here are some commonly used geographical factors you can use to segment your customers:

Location

Create different segments based on the continent, country, state, region, neighborhood, or postal code.

Climate

Group customers based on their local climate. This type of segmentation helps businesses identify locations where their product or service is appropriate for the climate.

Cultural preferences

Account for cultural differences and sensitivities when addressing target customers by creating segments based on cultural preferences. This enables you to modify phrases, colors, numbers, etc., that might have different meanings in different cultures.

Population density

Population density helps companies understand the size of local markets and decide where to invest to get the best return on their marketing budget.

Population type

People living in urban, suburban, and rural areas have different wants and needs. Dividing customers based on these population types can help you create targeted marketing strategies.

Language

Segmenting customers based on language helps companies prioritize translation efforts to focus on the largest or most valuable customer segments first.

In addition to the general benefits of customer segmentation, geographic segmentation has several advantages and benefits.

Easy to implement: Compared to psychographic or behavioral segmentation, geographic segmentation is relatively easy to do. Since geography is objective, it's much easier to identify someone's location than to understand their habits, interests, and behaviors.

Targeted marketing: Geographic segmentation enables you to target consumers in the right place at the right time. For example, a company selling snowboards might target locations with more snow or increase advertising in markets when they expect ideal snowboarding conditions.

Understand different consumer groups: Location, culture, language, and other geographical factors can influence how an audience interprets and responds to messaging.

Navigate country-specific regulations: Use geographic segmentation to ensure compliance with country- or state-specific requirements.

Expand into new markets: Geographic market segmentation can help companies predict which markets will be most receptive to their products and services and tailor marketing to resonate with each local market segment.

Kraft Heinz, one of the largest, global, consumer goods companies, used geographic segmentation to deliver more relevant, personalized content to its customers.

Partnering with Contentful and Ninetailed, Kraft Heinz used geolocation data to personalize homepage banners, product components, and CTAs based on the user’s location.

The result?

78% more conversions

30% increase in engagement

28% increase in customer satisfaction

See more real-world examples of how CPG brands are winning customers with personalization.

While geographic segmentation is a helpful way to target customers and personalize content, it does have some limitations.

Overgeneralization: Geographic segmentation can lead to broad assumptions about consumers in a particular area, overlooking individual differences and preferences.

Limited insight: This approach often lacks depth in understanding consumer behavior, as it doesn't account for psychographic or behavioral factors.

Technological advancements: With the rise of digital marketing, geographic boundaries are less relevant, as consumers can access products and services globally.

The most common approach to segmenting customers based on geographical factors is to use existing political boundaries, such as countries, states, or provinces.

Companies can also use publicly available data, such as population density, or collect first-party data through surveys or interviews.

Another common method is IP geolocation, which uses a person’s IP address to approximate their location.

See how easy it is to set up segments and start delivering personalized experiences with AI-native personalization, or contact us to see how Contentful can help your business scale personalization faster.

Up next: Demographic segmentation

Explore how demographic segmentation uses factors like age, gender, and income to help brands create relevant, impactful, and personalized content.