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Why Is Market Segmentation Important for Wellness Brands?

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The wellness industry is competitive. With thousands of wellness brands to compete with, how does your brand stand out? Some bigger brands like Headspace are able to target a general market, while other smaller brands focus on niche markets.


But there’s a way to get the best of both worlds. For brands that both want to reach a wide general audience but also speak directly to niche markets, there’s the magic of market segmentation.



What is Market Segmentation?

Market segmentation is a strategy that looks at the overall market and then divides it into smaller groups. The smaller groups are then analyzed to see if they have any specific needs or desires that differ from the overall market. Through market segmentation, wellness brands can hope to better serve their clients and expand their overall market.


woman applying skincare product


Why You Need Market Segmentation For Your Wellness Brand

While you may think your current marketing strategy is just fine, you don’t want to be left in the dust by other brands. There are several reasons you are missing out if your brand is not engaging in market segmentation.


Expand Your Audience

Typically, the more general you try to make an advertisement, the less compelling the message is. Consumers become customers because they believe your brand directly addresses their needs.


Through market segmentation, you can create a greater number of targeted messages. The way you speak directly to consumers without losing shares of the market.


Optimize Resources

There are two resources that business owners need to manage best: time and money. Market segmentation will save both of these in the long term by giving you vital information about budget allocation.


For example, 2018 research shows that 78% of 18-24-year-olds use Snapchat. If you’re trying to target that age group, advertising on Snapchat may be more effective than advertising on LinkedIn or Facebook.


Diversify Customer Membership

Through market segmentation, you can have more people reflected in your brand, and thus expand your overall market. While the name “market segmentation” implies splitting the market, it actually expands the market by splitting the advertisements.


The more you diversify your customer membership, the more people will be curious about trying your wellness brand. You want to break down the barrier of people not seeing themselves reflected in your customer base, and wrongly assuming “it’s not for me.”

Create Social Proof with Word-of-Mouth Marketing

There is one form of advertisement money can’t buy, and that’s word-of-mouth. People are way more likely to take a recommendation from a friend or trusted influencer than an advertisement. This phenomenon is called “social proof.”


By creating market segments and speaking directly to the individual needs of the segments, people are more likely to refer their friends. Wellness brands can also encourage word-of-mouth marketing by creating referral programs, where customers earn rewards by referring friends and family members.


Wellness brands can also generate social proof by analyzing market segments and reaching out to influencers to these market segments. Influencers are great at generating social proof because they are naturals at speaking to niche markets.


wellness product influencer


Optimize Service to Customers

Not only does market segmentation tell you how to advertise, it also gives you detailed information about why they are using your brand. Armed with this knowledge, you can optimize how your brand addresses its different customers.


One way you can diversify services offered is by offering different packages. Customers from wealthier demographics may be more willing to pay a lump sum for a year’s subscription, whereas lower-income market segments may be keener on a month-to-month plan. By offering different payment plans, both needs are addressed.


Feel Out Marketing Opportunities

The best and ultimate reason for wellness brands to segment their markets is that it gives marketers a much clearer picture of the individual sub-groups that comprise the greater market, the needs of these sub-groups, and how best to speak to them.


This knowledge gives markets a much better feel for marketing opportunities. Marketers can begin to anticipate desires and act on the opportunity before other brands do. With the magic of market segmentation, marketers can create custom-build marketing plans to directly target market subgroups and build a greater customer base.



Ways You Can Segment the Market of Your Wellness Brand

There are many angles you can approach market segmentation for your wellness brand. Some examples of the ways wellness brands segment their markets include:


  • Demographics

It’s common knowledge that wellness needs can differ by demographics. By using demographic segmentation, you can optimally reach targeted audiences and speak to their specific needs.


For example, the demographic of women over 50 probably have different wellness needs and desires from men aged 18-25. The former group is probably more focused on weight loss, while the latter group might be more concerned with building muscle. By segmenting these demographics, your wellness brand can address both customers.


  • Activity

Some wellness brand consumers are heavily involved in a sport or activity. For example, if part of your market is avid yogis, you may want to consider creating targeted advertisements that directly address their passion, or show up on platforms they regularly use like Instagram.


  • Lifestyle

Many people engaged with wellness brands do so because they want a happier, healthier lifestyle.


People more interested in wellness as a lifestyle tend to use more social media, so an effective method of addressing that market segment could be through Pinterest images or a Facebook group. Facebook groups are particularly effective because they tend to create a sense of community around the brand.


natural supplement packaging and branding


Bottom Line

Market segmentation is the process of analyzing the overall market for your brand, and seeing with sub-groups it’s composed of. By engaging directly with market segments, you can find the best ways to reach your audience, expand your customer base, generate social proof for your brand, optimize your customer service, and feel out new marketing opportunities.


If you’re not engaging in market segmentation, you’re missing out. Expand your brand and understand your customer base by segmenting your market now!

Aventive Studio

We are an Austin, TX branding agency dedicated to brand development by leveraging modern and strategic design. We specialize in the health and wellness industry and our team of designers, strategists, and web developers have teamed up to deliver value for clients worldwide, yet never lose sight of personal and individualized service. No matter the project, you will work directly with a core and accomplished creative director at Aventive Studio.

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