User Segmentation is the process of separating the app’s user base into groups. They are separated based on specific behaviors and demographics- such as age, country, gender, paying or non-paying, app version, in-app purchase, and more.
App developers use user segmentation to understand their users better and provide them with customized ad experiences. This can de be done by applying different app monetization strategies for each group. For example: – App developers can choose to show fewer interstitial ads for paid users or increase the reward for rewarded video users.
User Segmentation Importance and best practices:
Segmentation helps in bringing user groups together and aligning their goals with the overall business. In addition to that, a more profound connection is made in understanding user needs and sentiments. Identifying a specific user persona that aids in business success is very critical in user segmentation. Measurable actions can be taken by constantly analyzing reports and deciding on which segments align with key business goals.
User segmenting should be done practically, logically, and result-oriented. Segmentation bias should be avoided. It is easy to focus on the users that are doing well instead of looking at the entire picture. This can, in turn, help avoid specific results that could alter the authenticity of the data.