What is Database Segmentation?

Ruben Buijs

Founder & Digital Consultant

Written on Aug 1, 2023

3 minutes

Lead generation

What is Database Segmentation?

Database segmentation is the process of dividing a database of contacts or leads into smaller, more specific groups based on relevant criteria. This segmentation allows marketers and sales teams to personalize their communication and tailor their strategies to different segments of their target audience.


Here are a few examples to better understand how database segmentation works:

  1. Demographic Segmentation: Dividing the database based on demographic factors such as age, gender, location, income, or occupation. For example, an online clothing store can segment its database to target different age groups or genders with specific promotions or offers.

  2. Behavioral Segmentation: Segmenting the database based on the actions, behaviors, or interactions of the leads. For instance, an email marketing campaign can segment its database based on open rates, click-through rates, or past purchases to send tailored content to engaged subscribers.

  3. Psychographic Segmentation: Dividing the database based on psychological characteristics, interests, beliefs, or lifestyle choices. For example, a travel agency can segment its database to target adventure seekers, luxury travelers, or budget-conscious vacationers with suitable vacation packages.

Importance of Database Segmentation

Database segmentation plays a crucial role in lead generation and marketing strategies for several reasons:

  1. Personalization: By segmenting the database, marketers can create personalized experiences for their leads. Tailoring messages and offers to specific segments increases the chances of resonating with the audience and driving engagement.

  2. Targeted Marketing: Segmenting the database allows marketers to target specific segments with relevant campaigns, offers, or content. This targeted approach increases the effectiveness of marketing efforts and improves conversion rates.

  3. Improved Customer Relationships: Database segmentation helps build stronger relationships with leads by delivering content that meets their specific needs and interests. This leads to increased customer satisfaction and loyalty.

  4. Optimized Resource Allocation: By understanding the different segments within the database, marketers can allocate their resources more efficiently. They can focus their efforts on the most valuable segments that are more likely to convert, saving time and resources.

How to Use Database Segmentation

To effectively use database segmentation, follow these steps:

  1. Define Segmentation Criteria: Determine the relevant criteria to segment your database. Consider factors like demographics, behavior, interests, or purchase history. Ensure that the criteria align with your marketing goals.

  2. Collect and Organize Data: Gather the necessary data to segment your database. This may involve collecting information through forms, surveys, tracking tools, or integrating with customer relationship management (CRM) systems. Organize this data in a structured manner for easy segmentation.

  3. Segmentation Strategy: Develop a segmentation strategy based on the criteria and data collected. Decide on the number of segments, their characteristics, and the objectives for each segment.

  4. Segmentation Execution: Apply the segmentation strategy to your database using marketing automation tools or CRM systems. Create separate lists or tags for each segment and ensure that the data is properly categorized.

  5. Tailored Communication: Craft personalized messages, offers, or content for each segment. Use the segmentation data to deliver targeted communication through email marketing, social media, or other relevant channels.

Useful Tips for Database Segmentation

Consider these tips to make the most out of your database segmentation efforts:

  • Start Simple: Begin with a few broad segments and gradually refine your segmentation as you gather more data and insights.

  • Regularly Update Segmentation: Keep your segments up to date by regularly reviewing and updating the data. People's behaviors and preferences may change over time, so ensure your segments remain relevant.

  • Test and Measure: Experiment with different segmentation strategies and analyze the results. A/B testing can help determine the most effective segmentation criteria and messages.

  • Avoid Over-segmentation: While segmentation is essential, avoid creating too many segments that lead to resource-intensive marketing efforts. Strike a balance between granularity and manageable workload.

  • Segmentation Automation: Utilize marketing automation tools to streamline the segmentation process and ensure accurate and timely communication with each segment.


Database segmentation is the process of dividing a larger database into smaller, more targeted segments based on specific criteria or characteristics.
Database segmentation is important for lead generation because it allows businesses to tailor their marketing messages and campaigns to specific segments of their audience, increasing the chances of generating qualified leads.
Various criteria can be used for database segmentation, such as demographics (age, gender, location), psychographics (interests, behaviors), purchase history, engagement level, and more.
Database segmentation can improve conversion rates by enabling businesses to deliver more relevant and personalized content to their audience, increasing engagement and the likelihood of converting leads into customers.
Common segmentation strategies include segmenting by demographics, interests, past purchases, engagement level, customer lifecycle stage, geographic location, and more.
The frequency of performing database segmentation depends on various factors, such as the size of the database, the rate of data accumulation, and changes in customer behavior. It is recommended to review and update segments periodically to ensure relevance.
There are various tools and software available to assist in database segmentation, such as customer relationship management (CRM) systems, marketing automation platforms, and email marketing software.
Yes, database segmentation can be automated using advanced software and tools. Automation can help businesses save time and ensure accurate segmentation based on predefined rules and criteria.
The benefits of database segmentation include improved targeting, higher engagement rates, increased conversion rates, better customer satisfaction, and overall more effective marketing campaigns.
To start implementing database segmentation, you can begin by analyzing your existing customer data, identifying key segmentation criteria, and utilizing appropriate software or tools to create and manage segmented lists.

Article by

Ruben Buijs

Ruben, the founder of Boei, leverages over a decade of consultancy experience at Ernst & Young to optimize lead generation. Boei specializes in converting website visitors into qualified leads. Outside of work, Ruben is passionate about crossfit and enjoys gaming occasionally.

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